Some people rent out their second homes regularly, in which case the homes are regarded as investment properties. If this is not the case, however, the owners may get the same home loan rates they would normally receive on their primary homes. The owners may also deduct mortgage interest from their income taxes.

Benefits of Buying a second Home
Buying a second home provides two major advantages: time and equity on the primary home. This means people looking for their second homes should take their time since they already have a residence. They must weigh the advantages and drawbacks of each place they consider buying.

These people should take a couple of months considering the homes they are interested in. The place will still be there and they do not have to rush to make immediate purchases.

In the meantime, they must consider how often they intend to go to their second homes and the time they expect to spend there. It is also helpful for them to consider how they handle other areas of their lives. For example, someone who buys an annual membership at a health club but hardly attends the place for a couple of months should not expect to treat the second home differently.

Important Considerations
Buying a second home is a major investment and people must consider whether the move is worth the money.

According to some experts, second homes should generally be treated as investment properties. People interested in owning second homes must look at their investments with calculated eyes devoid of any emotional involvement.

Ask yourself the following questions:

• How much time will I spend in my second home?

• What is the realistically expected price appreciation?

• How much will I pay annually for taxes, garbage collection, association dues and landscaping?

You must take the time to calculate your expected financial return. Avoid timing your purchase in an effort secure a better deal because such a method rarely works. For example, do not assume you will get a better deal in the summer when you purchase in Florida or in the winter if you purchase in the Hamptons. In many instances, the values of homes do not fluctuate by season.

The best time to buy your second home is when you really want it.

Speaking of seasons, it is a good idea to have pictures of the second home you want to buy taken during all seasons. Also ask a reliable real estate agent about events taking place around the area such as all-night parties.

Insurance is another important consideration. For example, if you expect to purchase your second home close to the beach, you must consider the associated cost of insurance before you make any financial commitments.

Financing the Purchase
Once you have made all the necessary calculations and determined you want to go ahead with the purchase, you will need to consider how you expect to finance the deal.

If you were pleased with the way the broker or lender handled the home loan for your primary home, then this is a good place to start looking for a second mortgage. However, never ignore the importance of shopping around. Different lenders treat second homes differently.

Although lenders have their own rates for second mortgages, they are often the same as those charged on first mortgages, particularly for conventional loans. If a lender regards the home as an investment, then the interest rate is generally between 1.5 and two percent higher. Fortunately, you may have a lot of room when it comes to determining your second home as an investment property.

The tax implications associated with a second home are generally complex and you may need the services of a professional.

These points will help you make your next move smoothly and without any regrets.

There are lots of ways that you can cut corners and save a few dollars here and there, but often times it seems that there is only so much that we can do to really make a difference. One area that people sometimes overlook is energy usage, and although this may be something we try and limit through our behavior, what do we do to really change the actual consumption of power? A great example of this, and a wonderful way to change a large amount of energy expenditure over time, is lighting.

If you consider the average Des Moines home uses about 40 bulbs to light up their rooms this will cost you approximately $900 a year in electricity if you use incandescent bulbs. But, there is a more efficient way, and it requires the use of led lights. These are bulbs that have been created to be more durable, effective and cost efficient.

A prime example of how much better these amazing bulbs are in comparison to traditional light bulbs is if you consider how much energy they take to produce the very same amount of illumination. An incandescent bulb that uses 40 watts to light up a room would only need 1.5 watts for led lights to do the same job. This means that the $900 a year that you would be spending would only cost you just under $100 a year.

Then there is the cost, which is a hold up to some, and a selling point to others. It all depends on how you look at it. Because standard light bulbs last 750 hours it can go without burning out for a little over a month. Led lights on the other hand can go much longer. On average a home uses a bulb for about 10 hours a day. Led lights are said to last over 100,000 hours, which if you take into consideration how long that will go before burning out that would take you over 22 years before you would need to replace them.

To buy all the led lights you would need for your house you would spend at least $800, where if you were to buy what you would need of incandescent bulbs to last the same length of time it would cost you between $10,000 and $11,000.
Led lights are the future of lighting technology and you can find led lights for sale all the time. It may be a little more upfront, but it will be worth it in the end.

Putting Your Air Conditioner in the Right Spot

Running an air conditioner can be expensive, so why pay more than you have to? Air conditioners work by blowing out cold air into your living space until your room reaches the temperature that you have set on your thermostat.

Your air conditioning unit will run for a longer period of time if it thinks that the room is hotter than it is. If the air conditioners thermostat is heated by the sunlight or the heat emitted from your household electronics it will be running longer than necessary.

With this is mind, the placement of your air conditioner is crucial. Try to place you air conditioner in a window that is in the shade or is not in direct contact with the sun. Another easy way to prevent the thermostat from being unnecessarily heated is by not placing it near any heat emitting appliances like your television or floor lamp.

Minimize Heat Production

Many of your household appliances give off heat that makes your home warmer, causing you to spend more on cooling. As previously mentioned, your television and floor lamps are the most obvious culprits for heat production, but there are many other not so obvious culprits. Any appliance that you have in your home, weather you are using it or not, will generate heat if it is plugged into an outlet. This makes it very important to unplug any appliances that you are not using.

Another easy way to reduce heat production is to turn off lights when you’re not using them. This seems like a simple thing, but you would be surprised at how much you can save on your energy bills by just turning off the lights when you’re done with them.

Reduce Humidity

Humidity causes your living space to feel hotter than it actually is. This will naturally make you turn your thermostat down, causing your air conditioner to run for longer than needed.

Many of your everyday activities contribute to the high humidity levels in your home. Things such as cooking, drying your clothes, and even showering can significantly raise humidity levels. In order to compensate for the humidity that is created by these activities, it is recommended that you do them late at night or early in the morning.

Maximize Your Fans

Fans cannot actually decrease the temperature in your living space. What they do is create a breeze in your home that makes you feel colder. It is recommended that you place them by an open window or by your window air conditioner to help circulate the cool air throughout your home. If you have a ceiling fan make sure that the air is blowing downwards, so that you, not your ceiling, is feeling the cool breeze created by the fan.

Choose the Right Blinds

Just like you wouldn’t want to wear dark clothes in warm weather, you wouldn’t want to have dark blinds or drapes in your windows. Dark colors tend to absorb heat, while light colors will reflect some of the heat away from your home. By reflecting some of the heat your home won’t be as hot, so you won’t need to run your air conditioner and fans as much. Investing in some light colored drapes will be a small investment, but it will be one that can help you save money on your monthly energy bills.

These are all very simple things that homeowners can do to reduce their monthly energy bills this summer. You will find that small things like the ones mentioned above can go a long way in terms of energy savings. For more information about saving energy in your area contact the experts at Des Moines Heating and Cooling. They are happy to answer all of your questions regarding air conditioning and any other ways to save energy and money at home.

Here are a few names for people to watch as rising stars of the NCAA Championships.

Kimberly Duncan LSU 200 meters
Christina Manning Ohio St. 100 hurdles
Tia Brooks Oklahoma Shot Put
Brianne Theisen Oregon Heptathlon
Maurice Mitchell Fla. State 200 meters
Mike Berry Oregon 400 meters

In perhaps the most competitive field in the championships, the men’s javelin:

Sam Humphreys Texas A & M
Sam Crouser Oregon
Tim Glover Illinois State (defending champion)

The downtown is only a 19-minute commute from the suburbs, but if you work for one of the large corporations in or near the downtown core, why not select one of the growing number of high-rise or low-rise condominiums in the area? Since many downtown buildings are connected by four miles of skywalk, you could probably walk to work with minimal exposure the weather. You will enjoy closeness to work, walk to downtown Des Moines events like the Arts Festival, shop at a large Farmers Market, soak in the beauty of the urban landscape – and gain the benefits of homeownership.

For many people, the downside of owning a residence is that many repairs normally taken care of by a landlord fall on your shoulders. Making repairs can be time-consuming, costly, and definitely not on your list of how you want to spend your free time when there is so much to explore right outside your door. Plus, you might be a great underwriting specialist or a rising star in your company, but be all thumbs when it comes to home repair. If you’re honest enough to admit that you need to call for help when you have a home repair or maintenance issue, whom do you call?

A qualified professional handyman can do the job for you. If you live in a condo, especially a new one, you probably won’t need major remodeling, but you might want to make a few upgrades. A good handyman can revamp the kitchen or bath, add crown molding or wainscoting, tile a floor, or paint trim. A handyman can also install ceiling fans or new shelving, plus tighten up loose doorknobs, fix leaky faucets, or add safety bars to your shower.

While downtown living is not for everyone, there are certainly many advantages when it comes to saving time and money. This is the perfect time to find an affordable little condo where you can park the car on weekends and enjoy urban life!

About the Author:
Ben Trannel owns Case Handyman and Remodeling, a local company with a national reputation for excellence. His team of experts is happy to make any repair or upgrade you need in your home. They offer both remodeling services and handyman repair. All work comes with a 2-year warranty.
Note: picture is from Wikipedia by Dsmspence

Matt Shealy

Cold Drafts. Every home and apartment has little cracks and crevices that let air in. These airways are called drafts. Drafts can waste up to 30% of your home’s energy! That’s a lot of dollar bills being wasted. Luckily, there are some easy and inexpensive ways to stop cold air drafts from driving up your bills. For cracks between a door and the frame, use a rolled up towel or sock filled with sand to lie at the foot of the door. This will block cold air from getting inside. If you have very old windows, you may want to consider caulking around the frame to ensure no cold air gets in.

Set your fan in reverse. Fans normally spin counter clockwise. By reversing your ceiling fans to clockwise it pushes heated air downward helping to warm your room.

Wear more clothes. This is as simple as it sounds. By wearing more layers you can stay a few degrees warmer so your thermostat doesn’t have to.

By following these three simple methods you will stay warm in the winter without having to empty your pocket. Each winter there are over half a million fires in America due to heating related causes. In total, these fires cost over $3 billion in property losses. Protect yourself and your financial well being with a renters insurance policy. Get free renters insurance quotes to see how inexpensive it is to insure your property.

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About Matt Shealy: Matt is a frugal living advocate who dabbles in the real estate/rental space. You will find him writing on leading finance sites focused on providing everyday people with tips to live within their means.

Of course, Des Moines shouldn’t be compared to New York City or Los Angeles. Living here, you will not find a vast skyline full of skyscrapers, or an endless web of taxis. However, Des Moines does offer numerous high-rises and low-rises in the downtown Des Moines core. Des Moines offers some of the more charming aspects of an urban downtown area, with plenty of nice condos, walking distance neighborhoods, and an appealing selection of restaurants. Of course, if you are considering moving to Des Moines, you will also have to consider other, less appealing aspects of an urban downtown life, one of which is generally higher crime rates that one would fine in an urban area. Along with this concern, you may want to consider looking into an ADT Security system for the protection of your downtown home.

While there is no reason to be frightened or overly cautious, here is a statistic that should help you to take crime seriously in a downtown area: according to cityrating.com, as of 2009, “the violent crime rate in Des Moines was higher than the violent crime rate in Iowa by 94.22%.” Keep in mind this stat compares the largest city in Iowa to a mostly rural state, so of course there is more crime in a larger metro area than a small rural town. The fact is, while many urban areas offer certain charms, it is also very important to be more careful about safety when you live in an urban area.

An advanced home security system such as those offered by companies like ADT can help you to all but eliminate the concerns of crimes against your home and your family. Of course, you will still need to be careful when you are out and about; however, your home should be about as secure as possible. Whether you simply wish to install a basic home alarm system, or whether you want the works (motion detectors, security cameras, laser trip wires, etc.), a professional security company should be able to help. In the end, despite the many perks of city living, the most important part of any domestic situation is the safety of the people involved… there is no sense in overlooking products that can improve your security.

Hotel Update: Construction on floors 4 through 8 are progressing well and it appears that the hotel is scheduled to open this winter.  The current unoccupied floors of the Liberty Building, floors four through eight, would become the new home to Hyatt Place Hotel. This would create the first condotel in Iowa where a building is part hotel-part condominiums. Personally, having lived in Florida, condotels were quite common and always some of the most desirable places to live. The residents were extremely happy with the news.

With just under 100 new hotel rooms for the downtown market, this would be Hyatt’s first entrance into the downtown Des Moines market and a first for Hyatt Place in Iowa. The hotel would feature a separate entrance than the current resident’s entrance, a first floor lobby, with small bar and food area. Condo residents would enjoy most of the amenities a hotel brings such as morning newspaper delivery, 24-hour concierge service and even a brand new swimming pool in the basement of the building.

Nelson Development would remain the owner of the building and hotel. Nelson currently owns other hotels, residential and commercial buildings both here in Iowa and other cities in the mid-west.

Here are some pictures of what a typical Hyatt Place looks like.

Hotel Lobby

Guest Rooms

Eating/Bar Area

Kiplinger’s Personal Finance magazine has named Des Moines among its top 10 cities. Here are some quotes from the article:

The city is working to lure back young Iowans and attracting global talent by developing its downtown and promoting the jobs available in the many industries that flourish there. Other big draws: low-cost housing, plus the city’s long-touted reputation for family-friendliness and a “19-minute commute.”

Full text of the article can be found here: http://www.kiplinger.com/magazine/archives/best-cities-2010-des-moines-iowa.html

Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit. This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!

Here are some important details about this tax credit.
Dollar-for-Dollar Benefit: The benefit of a tax credit is that it’s a dollar-for-dollar benefit, rather than a “tax deduction” or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Even Better… It’s Refundable!
Remember, because it’s a tax credit, it’s refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
What are the Income Caps?
Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with incomes of $145,000 and above are ineligible. Joint filers with incomes up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible.
What’s the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sales price of $800,000

(Taken from “Weekly Mortgage Market Update….Tyler Osby Team)

For 12 years, Forbes has been ranking the Best Places for Business and Careers and, at the top of this year’s list, was Des Moines , Iowa . “ Des Moines favorable regulatory environment and well-educated workforce makes it an attractive destination for high-value-added, well-paying industries,” stated Sunayana Mehra, an economist at Moody’s Economy.com.

With a metro area comprised of 562,000 people, Des Moines business and living costs are more than 10% below the national average. In addition, 33 percent of adults are college educated, while 92 percent possess high school diplomas. The economic and housing outlook for Des Moines also looks bright. Employment rates are expected to increase 2.7 percent over the next three years and household incomes are projected to rise 2.9 percent.

Forbes gathered a variety of statistical data from over 200 cities, ranking them based on items such as business and living costs, past and projected job growth, educational attainment, projected economic growth and quality of life. For more information, please read the complete article published on Wednesday, April 14, 2010.