With more and more people to moving to cities, urban populations are exploding. As a result, condominiums are rising in popularity. An awesome ownership opportunity, different from the traditional home ownership process. But is one better than the other? Which should you choose for your needs? There are significant advantages and disadvantages to both, and we'll discuss them hear.
house noun hous/
- 1. a building for human habitation, especially one that is lived in by a family or small group of people.
- 1. NORTH AMERICANa building or complex of buildings containing a number of individually owned apartments or houses.
- 2. the joint control of a country's or territory's affairs by other countries.
However many people opt to own homes for it's many advantages. Complete and total control over the land and property decisions, and more space for friends, family and storage. Many people complain that the maintenance fees for condos are exorbitant and way too expensive. Also owning a home provides far more privacy than condo lining, without having your neighbors in such close proximity.
While you won't be hit with maintenance fees owning a home, you do assume financial responsibility for every little thing that occurs to your home. Consider it the penalties of total ownership, but some people love nothing more, and take great pride to up keeping and upgrading their homes.
Millennials are officially outnumbering baby boomers, and are beginning to enter first time home buying age. With credit more accessible for now, and after years of intense new development, there is no shortage of homes, especially in America's second their cities.
What do you think? Would you prefer living in a condominium or a house? Which advantages and disadvantages matter the most to you? It's is generally easier to finance a house, however, all things even, buying a condo is far cheaper. Condos offer closeness to shops, restaurants and other amenities associated with living in a urban center, whereas homes can offer privacy and space. Houses tend to be considered as a better investment, but condos do offer more flexibility. Let us know how you feel and share your response. Happy home buying!
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.