Archive for January, 2010

Great NYTimes article on the risks vs. rewards of buying new construction condos

The article is at http://bit.ly/d4vbi5

I posted a while back about the 1,805 sf 3BR that is the last large unit the developer owns in the Neapolitan in SW Hoboken. The Neapolitan is 2.5 years old, has 2 elevators & heated indoor parking, and has a completed transition engineering study plus $100k in reserves. The unit is really large for Hoboken and qualifies for the $8k homebuyers credit since it will sell for under $725k (the asking price).

The unit is in fantastic condition and has nice finishes (travertine marble bathroom, brazilian cherry hardwood floors, granite/stainless steel kitchen). The building has a ton of families living in it and is more than 90% sold. The resident kids shovel snow & ride bikes in the gated courtyard.

The NYTimes also reported a while ago that a lot of buyers are opting for almost-new construction like the Neapolitan to avoid the financing and construction issues of new construction. http://bit.ly/97jc9u

The developer is flexible on pricing b/c he is selling it FSBO. If you want to take a look, the floorplan and photos are at http://bit.ly/neapolitan3C

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Analysis of renting vs. buying in Hoboken

New Patch column on what it was like renting & buying real estate in Hoboken, with cost comparison. http://patch.com/BDgF

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The Laura Ingalls Wilder approach to life

The Laura Ingalls Wilder collection was a rite of passage for anyone who grew up in the US in the 1970’s (although, interestingly, my husband and I remember totally different parts of the books. You know, fighting Indians vs. cooking & sewing).

Ma Ingalls would have hated my sewing. She would have made me sit there for hours and rip out all my stitches until they were perfectly tiny, straight and exactly the same size. It’s funny how my perspective changes as I grow older and reread the series. I read the later books in the series and roll my eyes about what a control freak Ma was. I mean, hello, lady, fighting for survival on the frontier. If the sewing holds the cloth together, move on to your next disgusting chore, like making soap out of fat and wood ash. You know, so you can boil water over an open fire to handwash all your family’s clothes. Yeah, I don’t think I would have enjoyed that life so much.

But I digress. I am certainly not advocating that we all run our households like Martha Stewart on steroids, but I also feel that this country has much more of a Brave New World mentality than a Little House one. Our retailers sell so many cheaply made clothes and toys that are designed to break or wear out quickly that it is cheaper and easier to throw stuff out when it gets worn than to repair it. It would cost me more to buy fabric than to buy my daughter a dress at Target, let alone my labor in making the damn thing.

So what does this have to do with the Laura Ingalls Wilder approach to life? Simply, learn to do things yourself to save money and time, and always, always be prepared. Start small, with one thing at a time. Learn how to sew on buttons.  Spackle and touch up a hole in the wall. Hand wash delicate clothing instead of sending it to the dry cleaner. Learn how to cook a few simple meals from scratch (pasta, soups, baked potatoes) and and keep the ingredients on hand. Nobody is asking you to become Martha Stewart, but Americans used to survive without outsourcing all aspects of their lives.

My automatic reaction whenever I need something is to run to the store, but I find that if I wait a day or two and check my storage closets, I often can cobble together a solution out of stuff I have lying around. For example, I needed a cover for the seat of my new sofa because my kids seem to think the seat cushions are an excellent dumping ground for food when they are done eating. After searching online for a throw of the right size and color, I remembered the  beige velvet curtains from my old apartment. They actually worked perfectly because the fabric is so heavy it doesn’t shift around when we sit on the sofa. And they are machine washable, a nice bonus!

Little solutions like that help me save money and send less stuff to landfills. A win for my household budget and the environment that multiplied across thousands of households could have significant positive impact. It’s time for everyone to step up and see how we can help ourselves.

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Donate credit card rewards points to help rebuild Haiti

The NYTimes reports that AMEX, Bank of America, Chase, Citibank & Capital One are allowing cardmembers to redeem rewards points to donate to the Red Cross funds benefiting Haiti. 1,000 points = $10, it’s a fast, free & potentially tax-deductible way to help care for all those injured, starving people!


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Free e-books on Amazon.com!!!!

From now until the end of Jan, you can download free e-books (Pride & Prejudice!!!!) on Amazon. You have to download Kindle for PC or ipod to read them. http://bit.ly/8XvvI4

You can see the books’ list price as $0.00, I found them by searching for “Pride and Prejudice.” Awesome, I love Amazon!

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Pros & cons of graduate school

According to Forbes magazine, paying private undergraduate tuition (currently $100k-$175k) anywhere except at the top 10 to 20 colleges is a poor investment. Historically, a college degree has boosted long-term earning potential, but what about graduate school?

The real purpose of an education is to enhance your earning potential. If getting a specific graduate degree boosts both your employment chances and your long-term earning potential, then I am all for it. If you want to work in a licensed profession (doctor, lawyer, architect, nurse) then there is no alternative. But what about the rest of us?

I spent my twenties struggling with the concept of business school. Do I or don’t I?

My concerns were:

  1. Opportunity cost (missed earning years)
  2. Tuition & cost of living expenditures
  3. Return on investment (ROI)
  4. Work experience

Ultimately, I decided against getting an MBA because I felt my work experience outweighed the degree. Just like learning a language, immersion is a much better teacher than a classroom. I have superb computer skills because of a combination of an intense work environment along with on-the-job training (I got identified in college as a likely candidate for a Lehman Brothers management training program).

The other factor to keep in mind is # of earning years. Getting a graduate degree in your twenties is going to have a much bigger impact on your lifetime earnings than getting one in your thirties. A good friend once told me that by your early thirties, you need to have that one solid 5-7 year employment experience on your resume to really stand out and go up the career ladder.

Generally speaking, most people are broke in their twenties, and have more income in their thirties and forties. Past that age, they face the specters of their children’s college tuition and retirement, with limited earning years remaining. So you need to make the most of your thirties and forties to sock away as much capital as possible as a hedge against the future.

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Car/booster seat age/weight/height requirements

Whenever I am unsure about what car seat to use, I refer back to this handy article from Parenting magazine’s June 2007 issue. It lists the minimum and maximum requirements for infant, convertible, combination and booster seats.

The #s are:

Infant seat (rear-facing only)
Minimum: Birth
Maximum: 20 months

Convertible seat (rear-facing)
Minimum: Birth
Maximum: At least 1 year & 30 lbs

Convertible seat (forward-facing)
Minimum: 1 year & 20-30 lbs
Maximum: 4 years & 40-65 lbs

Combination seat (forward-facing)
Minimum: 1 year & 20 lbs
Maximum: 4 years & 40-65 lbs

Booster seat
Minimum: 4 years & 40-65 lbs
Maximum: 8-12 years, 80-100 lbs & 4′9″ tall

Full article at http://bit.ly/5SL5q8

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Susana, you were completely right about MrRebates

Thank you for bringing MrRebates to my attention, I am completely sold. I have been using the website now for five months and they have a wide range of merchant partners, an easy-to-use interface, and an unbeatable check mailing system (I have a balance of $89.45 in pending rebates, $5.36 available and have claimed checks totaling $21.69). Love having the two-way conversation, I am learning stuff from you too! Open communication is the key to success.

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Writing a newspaper column about juggling career & motherhood in Hoboken

Debuting along with the launch of Hoboken Patch newspaper! My column currently has front page billing on the top spot, pretty cool.

http://bit.ly/momjuggle

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Where does debt fit into a marriage?

I talk a lot about the necessity of saving money and sharing common financial goals with your spouse, but what about debt? Most of my friends got their first credit cards in college, and things snowballed from there with student loans, retail store cards, car loans and mortgages.

Let me be clear: I view debt as a necessity for getting ahead in the United States. Very few of us have the capital to pay cash upfront for tuition, cars and homes. It is like riding a frisky horse -you need it to get where you are going but you have to be very careful to avoid getting hurt.

According to the WSJ, good debt is something that improves your life permanently (mortgage, auto, undergraduate student loan).  Bad debt  (auto leases, home-equity loans or lines of credit, and any consumer expenses that you can’t pay in full each month) has a temporary effect.

The same way you need to have a spending plan, you also need to have a debt plan. Real estate is a priority for me and my husband, coming before our wedding (we bought our first apartment together a year before we got married) and graduate school.

Because my husband and I have been together for so long (he was 19 and I was 21 when we started dating), all our adult life decisions have been made together. Where to live and work, education choices, these have all been joint decisions. The overarching themes have been:

  • Put all our expenditures on one credit card to build rewards points and our credit scores, and
  • Pay off debt.

In the 14 years of our relationship, we have paid off multiple student loans, two mortgages and two auto loans. If we ever earn enough to completely fund our rebuilding plan, then we will put any extra cash toward paying off our mortgage. But with a 4.5% interest rate on a 30-year fixed rate loan, that is last on our priority list.

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