LA Examiner

Tag: Home

  • Weighing Your Options: Buying vs. Renting a Home

    Weighing Your Options: Buying vs. Renting a Home

    Image credit: Pixabay

    For many Americans, owning a home they are proud of is their life’s dream. However, multiple factors of today’s economic environment, including a high-cost market and high interest rates, have made this decision a challenging one, driving some prospective homeowners to rent until conditions improve. 

    Other variables, including lifestyle, sentimentality, and long-term goals, often influence these decisions as much, if not more, than potentially prohibitive real estate prices or mortgage rates. For these reasons, homeownership requires more planning and consideration than ever.

    Homeownership and Sentimentality

    Given its prominence in the American Dream, homeownership is tied to emotion as much as it is material reality. “Many people have an idea of a dream home,” says Michael Ashley Schulman, CFA of Running Point Capital. “It’s either the house they grew up in, or it’s the opposite of the house they grew up in.”

    Either way, ideals like a spacious yard, a massive closet, or an in-ground pool can encounter challenges due to those material realities. Practical limitations compete with emotional priorities, sometimes resulting in compromise.

    Modern Means of Financing a Home

    Homebuying is not the same as it was 50 years ago. With the rise of dual-income households and improving government safety nets, some homeowners spend upward of 50% of their disposable income on housing, a far cry from the traditional rule of spending no more than one-third on housing.

    These changes predominantly arise out of financial necessity. With heightened interest rates, there is a greater incentive to pay off the principal. Conversely, Schulman notes that, “when mortgage rates are lower… much more of your mortgage payment is going towards your principal.” It stands to reason, then, that buying a house when rates are more favorable means paying yourself and not just the bank.

    The Upsides of Renting

    Some view renting as a waste of time and money, but depending on the circumstances, renting can be a practical option, especially in the short term. For instance, frequent travelers or people concerned about location or job stability tend to value the flexibility that renting offers.

    There are some financial advantages as well. While there is value in owning real estate, this value comes with hidden costs like insurance, property taxes, maintenance, and HOA fees. These costs can pile up quickly, potentially even exceeding the original budget for a given property. Renting can provide some respite during times of economic uncertainty, giving tenants time to gather themselves before moving on.

    Considering Retirement and Second Homes

    Long-term considerations have become more prominent in recent years, as buyers are increasingly interested in purchasing homes with retirement in mind. Factors like location, space, and proximity to healthcare have become increasingly important as a result. Planning so far ahead can prove challenging, but as Schulman notes, “We help them plan that out too… buying a home for your future self.”

    There are a variety of strategies available to make these purchases financially viable, chief among them being tax deductions like donating land to conservation trusts. By employing these strategies and making the most of local advisory resources, the notion of a retirement spent in comfort and ease becomes all the more attainable.

    Navigating Current Market Conditions

    At present, the housing market is in a “heads you win, tails you don’t lose” state, benefiting those who can afford to buy sooner rather than later. Still, whether you’re renting, buying a home for the first time, or planning for retirement, all decisions should weigh sentiment alongside financial realities. Advisors can help provide perspective in this regard, ultimately helping homeowners feel confident they’ve made the right choice.

  • The Hidden Costs of Neglecting Your Home’s Water and Air Filters

    The Hidden Costs of Neglecting Your Home’s Water and Air Filters

    Image credit: Unsplash

    Water and air filtration are critical components of home maintenance routines but are often overlooked. Because the filters are typically in designated closets or smaller spaces, they are easy to ignore. Common mistakes include improper installation, not changing them on time, and purchasing the wrong filter sizes.

    Not replacing water and air filters can lead to bacteria growth, health issues, and increased strain on appliances, ultimately driving up utility bills. Regarding filtration system maintenance, it is better to be proactive than reactive. Routine maintenance provides many benefits, from financial savings to a healthier living environment, and enables appliances to operate correctly.

    The True Cost of Ignoring Filter Replacements

    Regular filter replacement should be done every six months for water and every three months for air. This practice is crucial for health and efficiency and is often more important than buying expensive filters while neglecting routine replacement. Ignoring this task can significantly increase utility bills, cause potential system breakdowns due to extra strain on components, and reduce air or water quality.

    A common misconception is that expensive filters last longer when, in reality, frequent replacement of basic filters is often more effective. Air filters allow HVAC units to intake more air and stop harmful contaminants from entering the home, offering many benefits, including allergen control. Water filtration systems are even more important in homes with hard or well water, as they provide healthier and softer drinking and shower water. Improper installation of these systems and failure to replace the filters regularly prevent them from working efficiently, forcing filtration systems to work harder, which could lead to costly repairs. 

    Water Filtration: More Than Just Clean Drinking Water

    A whole-house filtration system treats all the water entering a home, applying a broader range of protection for refrigeration, faucets, and showers. Targeted filtration systems focus on specific locations, such as kitchen sinks and showers, and require frequent filter changes to work effectively. These systems safeguard against contaminants and impurities, ensuring safe drinking water.

    Targeted filtration maintenance is essential for drinking, showering, and laundry water. Shu Saito, founder of All Filters, says, “These fridge filters last a little longer than six months, but if you go too long, like 11-13 months, bacteria could grow, and nobody wants to take that risk.” Saito’s point highlights the need for proper filtration maintenance for healthier living. 

    Air Filters: Protecting Your HVAC System and Indoor Air Quality

    Air filters are essential for the HVAC system, trapping dust, allergens, and other pollutants before they enter a home. Clean filters help prevent biological contaminants, such as bacteria, viruses, and mold, from circulating indoors. They typically come in HEPA and V-bank styles. HEPA filters offer high efficiency and can capture up to 99.97% of particles before they enter the home. The V-bank style has low airflow resistance and high dirt-trapping capabilities, making it beneficial for both the home and the HVAC system.

    Proper air filters ensure that contaminants are trapped before they enter the HVAC unit, helping it operate smoothly and lowering utility bills. Clogged filters can strain an air conditioning system’s components, leading to breakdowns and expensive repairs because the unit is not receiving the correct airflow. Regular filtration maintenance is cost-effective and leads to better air quality in the home. A common mistake is assuming that more expensive filters last longer when, in fact, it is more critical to change them frequently. 

    Cost-Effective Filtration Maintenance Strategies

    Air and water filters are not costly, and buying them in bulk saves money while ensuring you always have them on hand. Setting reminders helps ensure that the filters are replaced on schedule and can also prompt you to purchase new ones. Filtration systems should be installed correctly, and water filters should be flushed before installation to guarantee proper function.

    Avoiding home maintenance services is a common mistake homeowners make, especially with air and water filtration systems. Not performing regular maintenance on targeted filtration systems leads to poor drinking water and diminished air quality, which may result in costly repairs and higher bills.