Eclipse Update – Home Repair Frauds

Sounds like we are on a semi-holiday next Monday with the eclipse that day.  Be aware that, according to the published maps, not all of St Louis metro will see the total eclipse.  Draw a line from Page/364 and 270 to Hampton and 40/64 and continue a straight line each way.  That is the approximate northeast edge of the 70 mile swath of totality.  U City, Downtown STL, and North County will still see a 99% block, but most of West County, including Manchester-Ballwin-Chesterfield; South County; and other points south and west will experience anywhere from 1 to 2 minutes of total eclipse.  Clayton is right on the line.  Enjoy!

The St Louis County Police Department has distributed information regarding the most common home repairs where fraud is committed by people who are anything but honest and hard working.  The best way to protect yourself is to be knowledgeable and use some common sense.  The most popular repair scams involve roofs, driveways, painting, termite/pest control and tree pruning/landscaping.

Mostly, these fraudulent repairs have several things in common:  They approach your home in person and claim to be working in the neighborhood, and noticed something needs repair.  He may have some leftover materials from the job down the street and can take care of your job inexpensively.  He may throw a few shingles on the roof, do some painting, landscaping, etc. either using inferior or false materials, or afterward say the price quoted did not include labor; was per foot or section- not the whole job; or found more wrong once he got started.  In the end, the bill is substantially more than expected, or the job was not done correctly, if it was needed at all.

Prevention tips include: (1) doing business with well-known and established businesses; (2) check with the Better Business Bureau; (3) obtain a contract that includes a complete list of what will be done and materials used along with the price; (4) getting a paid receipt and lien waiver when completed; (5) not making an all cash payment, or even a large down payment to get started (although some money upfront or a credit card may be requested).  For more information, visit www.stlouisco.com/police or call 314-889-2341 General Information.

Many cities and municipalities such as Manchester now have laws prohibiting door-to-door soliciting like this, with certain exceptions.  Options are (1) not answering the door; (2) asking to see their permit (required in areas like Manchester) or identification; (3) calling the police if you are uncomfortable with the situation.  Over many years in real estate, I have developed a reputable list of contractors for many types of work, feel free to ask me for referrals.  In order to stay current, I do not publish it as it changes often.  You are much better off being proactive on home repairs and improvements by contacting a trusted contractor than a stranger knocking on your door.

Happy Repairing!

Make Homeownership Work for YOU

Homeownership is one of the best ways to build wealth and secure your financial future.  Here are five primary ways being a homeowner can help you accomplish this

 

Homeownership can help create a forced savings. Most people aren’t very good at putting money aside each month, but every financial expert would agree that having a savings cushion is essential for financial freedom. For homeowners, a monthly mortgage payment can act as a forced savings. As you pay down your principal, you build equity, which helps to increase your net worth.

 

Homes usually appreciate in value. While there’s no guarantee that the home you buy will appreciate, there’s a pretty good chance. According to the Federal Housing Finance Agency’s House Price Index, home values have appreciated an average of 3.33% each year since 1991. For instance, if you purchased a home for $100,000 in 1991, your home would be worth almost $250,000 today. In addition to the amount you’d have paid off on your mortgage during that time, this appreciation in value builds even more equity, therefore increasing your net worth.

 

 A home is a tax shelter. When you earn a profit from a property or investment (say, the stock market), you normally have to pay capital gains tax. But if you make a profit when selling your home, that profit can’t be taxed (with some limitations), which keeps more money in your pocket. Owning a home also comes with other tax benefits, such as deductions on mortgage interest, mortgage discount points, mortgage insurance, and property taxes. These reduce your taxable income and can help you keep more of your hard-earned money.

You can have a fixed, stable housing payment. Renters are susceptible to fluctuating rental prices, which have historically gone up each year. Mortgages, on the other hand, can be fixed, which provides a stable housing payment that won’t fluctuate over the life of your loan. This will allow you to keep your cost of living down and put more of your money toward savings, investments, or other avenues that can help you build wealth.

 

Homeowners have a greater net worth. According to the Federal Reserve’s latest Survey of Consumer Finances, homeowners have 36 times more net worth than renters. As of 2013, the median net worth for homeowners was $195,400, compared to $5,400 for renters. This comparison clearly shows the power of homeownership for building wealth.

 If you want to gain financial freedom, homeownership is a no-brainer. Buying a home is one of the smartest things you can do to help you build wealth for the long-term.  This article was provided by Vibrant Living. 

 

Happy Saving!