Posted by Madison Backhouse on January 14, 2012
As I indicated several weeks ago, I am looking for a new place to live. I recently visited my for sale by owner. To recap, the general public can now contract real estate agents for listing only services or full brokerage services (listing, analysis, negotiating, open houses, closing etc). I saw a condo that had hired an agent for the sole purpose of listing their place for sale on MLS.
My experience with for sale by owner listings is mixed. On the positive, it was easy to get a hold of the owner and there was nothing lost in translation when communicating positions.
Here are the issues though. The price did not reflect market. Quite simply, the condo was listed way above market. How did we know? Firstly, my real estate agent ran an analysis which showed the unit was listed 6% too high (I’ll address how he did the analysis in my next blog about looking for a new condo). This was confirmed by the unit immediately below, represented by an agent, listing their unit for 2% below the unit upstairs (remember this is the listing price so the sale price would be lower than that). G
Read full article…
Posted by Zachary Ogilvie on January 12, 2012
This is a series following my experience tracking my expenses through January. Im exploring this cash flow management technique with an eye towards what it feels like to write down every single time I spend money. Its not that people dont know how to track their expenses (the nuts and bolts are not particularly difficult), but there are buckets full of internal obstacles that make the practice very difficult.
Im posting about the experience so when you try tracking your spending (because slaying ignorance leads to more budgeting peace of mind) youll know youre not alone, this stuff is hard, but hopefully in the end tracking your spending is worth it.
January 2, 2012
My first purchase of the New Year was a plane to ticket for my brother’s graduation in May. I sit down, go over flight info and prices, remember my frequent flier number and make the purchase. I then walk out of my room, and luckily remember 5 minutes later that I’m tracking my spending. Oops.
Read full article…
Posted by Zachary Ogilvie on January 9, 2012
Homeowners’ monthly mortgage payments fell to their most affordable level since records began in 2011.
On average, people paid out 15.4% of their take home pay last year to cover their monthly mortgage payments, compared to 2008 when it reached its highest point at 20.5%, figures from Barclays show.
The lowest point since records began 10 years ago was in September 2011 when the average mortgage payment fell to 15.2%, or £488 a month.
The figures are supported by separate research which found the majority of homeowners say they are more comfortable with their current payment levels compared to this time last year.
Of the millions of homeowners in the UK , 83% have room for manoeuvre should their circumstances or interest rates change and 64% find their mortgage affordable, compared to 52% this time last year.
Fewer homeowners think interest rates will increase this year – just 40% think interest rates will rise in 2012, compared to 74% who were asked at the beginning of 2011 about the year ahead.
Read full article…
Posted by Madison Backhouse on January 7, 2012
If you thought your money woes ended last year when you settled that credit card debt, think again.
Avoiding 1099-C tax problems |
What you should know: Have you negotiated with a creditor to pay less than you owe on a credit card debt? The IRS considers forgiven or canceled debt as taxable income. What to do: Experts advise consumers to seek tax advice before negotiating credit card debt settlements to avoid a “surprise” tax hit from cancellation of debt.
For many consumers with debt problems, after the debt collector leaves their lives, the taxman arrives.
Months after successfully resolving credit card debts, consumers have received 1099-C “cancellation of debt” tax notices in the mail. Why? The U.S. Internal Revenue Service considers forgiven or canceled debt as income. Creditors and debt collectors who agree to accept at least $600 less than the original balance are required by law to file 1099-C forms with the IRS and to send debtors notices as well.
Read full article…