Deals like a $250,000 house selling for $65,000 has brought home buyers back into the housing market. And for the first time in three years, the S&P/Case-Shiller U.S. National Home Price index of real estate values has risen from one quarter to the next. Is the decline over?
While no one is expecting an immediate return to boom times, it does appear the market may have hit bottom sometime in the second quarter and is now making a very modest rebound. With plenty of property to choose from, low mortgage rates and the first-time home buyers tax rebate good through November 30, 2009 -- what's still holding you first-time buyers back?
Do you know the difference between "geothermal energy" and a "ground source heat pump"? All I know is they both run into the ground. But as this article from Green Building Elements explains how together they can more efficiently heat and cool your home at a dramatically reduced price.
Simply stated, a geothermal energy system uses heat from below the surface of the Earth as an energy source (think: tapping into a geyser or a volcano for power).
A "ground source heat pump," also known as a "geoexchange system," uses the ground's stable year-round temperature to more efficiently heat or cool your home. How it does this is best explained by this video. Interested? Do a search on this site to find qualified geoexchange contractors in your area.
Should you always stretch yourself financially when buying a home? This New York Times article answers with a resounding NO(!). A lot of rules got thrown around during the housing bubble that have since been turned completely upside down. Here are the new rules:
1. Go with a traditional lending terms -- That means 20 percent down on a fixed-rate mortgage. Don't spend more than 35 percent of your pretax earnings on mortage, property tax and home insurance.
2. Base your decision on your income -- A home buyer in their 20s and 30s is likely to see their income increase over the years. Don't fall prey to income overconfidence but this is an argument for stretching a little if you are a younger buyer.
3. Remember the unknowns -- One financial planner encourages clients to model their budget based on all three of these situations: both spouses working full time, one spouse working part-time, and another where one spouse takes several years off from working.
4. Budget for house expenses -- Owners who contract out work will likely pay "3.6 percent of the home's original purchase price annually for maintenance and 4.5 percent if it's an older home."
5. Avoid the middle price -- Either buy your dream house (if you can afford it) or the cheapest home. Buying the cheapest home allows home buyers to save on their monthly mortgage and buy what they actually want several years down the road.
6. Imagine staying in the home longer -- Doing so allows home buyers to avoid the transaction costs involved in selling, buying a new home and moving again.
7. The 'Eight Hour Rule' -- All these rules are guidelines, they may not apply to your situation. The question is: Can you comfortably sleep eight hours a night in this home without it keeping you up at night?
Actor and environmental activist Ed Begley Jr. is popping up all over these days promoting his show Living with Ed and his new book Living Like Ed (read an excerpt here). Momentum is on his side, as the NY Post puts it "this guy went green long before it was trendy."
Begley's show was recently picked up for another 13 episodes by HGTV. Entering its third season, Living with Ed shows the virtues of "green living" and audits other celebrities' homes. Take a look at his home in this photo series from the BBC. There are lots of good ideas in there for improving your home, including bricks made from recycled tires and a solar oven.
Solar panels orbiting the Earth and beaming electricity back to the ground sounds Star Trek to me but it's close to happening. Mitsubishi Electric Corp. and IHI Corp. of Japan recently reached a $21 billion agreement to develop the technology with the hope of being "off the ground" in 30 years.
Unlike terrestrial solar power systems, the one gigawatt station will be able to generate electricity without being dependent on the weather. That's nice but it is noteworthy that launching something into space and beaming energy back to earth could be expensive. The Japan Aerospace Exploration Agency is planning on launching a small test satellite for the project in 2015. What do you think: Exciting or More Space-Junk?
Nearly half of the nation's mortgages are predicted to be underwater by the end of the first quarter of 2011. That means owners owe more on their home than it's worth. Yowza.
According to MSN Money, here's how you can tell if you are in danger:
Lots of foreclosures in your area. Best to look to the Foreclosure Google Map to see how your neighborhood is faring.
Lots of 'For Sale' signs. More than three months on the market is a bad sign.
No jobs. Areas with the highest unemployment rates have been hit the hardest.
Homes in disrepair. A well-kept neighborhood is a valuable neighborhood.
Where do you live and what are you seeing in your area?
If the world were to be entirely powered by solar panels (including cars, trains, etc), how much surface area would it take up? According to this website's calculations, the panel farm would have to cover all of Spain to meet the world's energy demands by 2030.
That's a lot (496,805 square kilometers to be exact), and I think the Spanish people would have some objections. Joking aside, given that the total land mass of the Earth is 148,939,063 square kilometers, that is only .3% of the land available. This map by the Land Art Generator Initiative has a suggested layout for all these solar panels. According to the map, the large 124,000 square kilometer panel farm in the Saharan Desert "would power all of Europe and North Africa." Would you give up land in your area for solar panels?
