You love the house you just saw on your search for a new home. Do you put a clause in the offer to purchase for a home inspection? What you REALLY need to know when choosing a home inspector!!!
No, I'm not going to talk about the house inspectors credentials and everything else you have probably heard on TV. I'm sure you know that already. I'm going to give you a warning that you, most likely, haven't heard before. But first, let's talk about the "Should I? or Shouldn't I?"
Your house is going to be one the single one investment that you will put most of your money into. Even if you are a multi-millionaire your house will probably be representative of your wealth. Those pictures of Tiger Woods home floating around the Internet come to mind. What also comes to mind is the phrase, "A new broom sweeps well.". When you see the house of your dreams you are not thinking about the potential mold behind the walls and water damage that has been covered up in a 'staging' effort. That house is perfect, in your mind...but is it?
I remember the time I went to see a house that I was considering purchasing and the teenage child decided to take a shower at the time of the viewing. I opened the closet under the bathroom and the amount of water seeping through the ceiling ensured that I wasn't coming back!
As you may have already ascertained...a home inspection is a must. Paying a few hundred dollars can save you, potentially, thousands. You may decide to buy the house anyways but armed with new information the seller may agree to a lesser price considering the price of the fix-ups.
OK, so here's something that no one tells you. Do Not use the home inspector that the reals estate agent recommends. I know you trust your real estate agent, otherwise you wouldn't be working with them to find your dream home. Remember, that real estate agent gives many referrals to that home inspector. The home inspector really wants to help the real estate agent sell the house or he/she may not get much more business from this steady referral base. I'm not suggesting that home inspectors will lie on their reports but they may not delve much beyond the letter of the law when it comes to their disclosure. House inspectors must cover a number of points to do a proper inspection but it doesn't cover Everything. Personally, I think it's more likely that if the house inspector that you hire, that is working just for you, feels there may be issues beyond the scope of what is necessary for them to inspect they might be more willing to disclose this information than if they were referred by the professional that is trying to push through the sale.
Showing posts with label money. Show all posts
Showing posts with label money. Show all posts
Friday, February 25, 2011
Thursday, November 4, 2010
Life should be stop and go!
When all systems are a 'go' you have to sometimes stop and look out the rear view mirror. Often, I see clients who are so busy chasing future dollars but they don't stop to look after the wealth that they have already created. Remember, life is dynamic not static, so once you have your financial plan in place it doesn't mean that task should be off your radar forever. As we chug along we should stop, at intervals, to re-assess the validity of our previous financial commitments. A few things to reflect are:
1) Is my Will still up-to-date? What about my Power's of Attorney, both financial and medical?
2) Is my portfolio working for me? If not, is it time to consider a different strategy....????
3) Is my retirement planning in place? Will my pension be enough? If not how much do I have to supplement?
4) What will happen if I die tomorrow? Do I have enough insurance to ensure my family is not hit by financial hardship? How much is enough?
5) Do I want to help my kids with the cost of post-secondary education? Are they thinking of going to school and staying home or are they planning to leave the family home to attend school?
6) Do I have elder care issues? What is going to happen to my aging parents/grandparents?
So how often is reflection required? I advise my clients to reflect upon these issues on an annual basis. Pick a birthday, end of the year, June 1st (half way through the year), anniversary or some other date that is going to trigger you to remember. All too often these questions get ignored and then when we are faced with issues we are often ill-prepared. After all, spending a few hours every year ensuring the wealth you have already created is well looked after is worth putting aside the potential for a few hours worth of potential future value, isn't it?
1) Is my Will still up-to-date? What about my Power's of Attorney, both financial and medical?
2) Is my portfolio working for me? If not, is it time to consider a different strategy....????
3) Is my retirement planning in place? Will my pension be enough? If not how much do I have to supplement?
4) What will happen if I die tomorrow? Do I have enough insurance to ensure my family is not hit by financial hardship? How much is enough?
5) Do I want to help my kids with the cost of post-secondary education? Are they thinking of going to school and staying home or are they planning to leave the family home to attend school?
6) Do I have elder care issues? What is going to happen to my aging parents/grandparents?
So how often is reflection required? I advise my clients to reflect upon these issues on an annual basis. Pick a birthday, end of the year, June 1st (half way through the year), anniversary or some other date that is going to trigger you to remember. All too often these questions get ignored and then when we are faced with issues we are often ill-prepared. After all, spending a few hours every year ensuring the wealth you have already created is well looked after is worth putting aside the potential for a few hours worth of potential future value, isn't it?
Friday, October 1, 2010
Teaching Kids About Money ~ I'm not kidding!!!
It's interesting that I have been hearing a lot about how to teach kids about money. I know that when I counsel couples about budgeting I usually begin with how they think about money and what it means to them. Most of the psychological issues with money stem from our up-bringing. Typically, one person in the couple is the 'perceived' spender. I say 'percieved' because they may spend more than their partners but they can also be good savers and have a very disciplined saving and spending philosophy.
So, as parents or grandparents what can we do to ensure that we are instilling the "good" philosophies about spending money. Keep in mind that money is just paper. What we want to teach our children is the work ethic, the sense of constraint and the freedom of enjoyment in a healthy balance. That's the real lessons to be learnt.
Typically, we can start our very young off with the piggy bank and teach them how to save and how the savings add up, if not spent. I think it is important to let children spend their money, if they wish, so that lessons can be learnt about how things cost money and how we can make conscious decisions as to whether we want to budget for the bigger ticket items or whether some smaller ones are justifiable along the way. Letting children make their own decisions is a good one...but some guidance along the way is also important. "You sure you want to spend that money on a new toy instead of saving a little more for that teddy bear that you saw at the store with Grandma?" Remember, kids have short memories, especially when something immediately gratifying can be right in front of them. Allowing them to make their own choices will also give them a certain amount of independence and neither choice should be deemed a 'good' versus a 'bad' choice. Children must learn on their own, within limits.
Generally, after the age of about 5, it would be a good idea to set up a spending and a savings plan. This shows kids that they can still make the independent choice to spend but saving money is also important. Perhaps, some small chores can be incorporated, just enough to ensure that they understand that money must be earned. Of course, light chores are recommended at this age. You don't want an over-stressed child..but rather, something that is befitting their age and capabilities.
Once children are in their mid-teens you may want to add a little 'credit' to the situation. Give them a leeway of about $50 to 'over spend' with the intention of paying it back within a reasonable time frame. This will teach them that they can have that immediate gratification but the work must follow and payments must be made. You can even have the payments in increments. It is important, however, that you child gets 'paid' even though they owe you money because they may chose to only repay half instead of the whole 'pay-check' and this also helps them to manage their funds in a responsible way. Perhaps minimum payments should be understood and a 'credit' document be written up for them so they know their limits and expectations.
Once your children have entered their 20's they may well be ahead of their peers and they will make financially healthy decisions with their childhood experiences and your guidance, behind them.
So, as parents or grandparents what can we do to ensure that we are instilling the "good" philosophies about spending money. Keep in mind that money is just paper. What we want to teach our children is the work ethic, the sense of constraint and the freedom of enjoyment in a healthy balance. That's the real lessons to be learnt.
Typically, we can start our very young off with the piggy bank and teach them how to save and how the savings add up, if not spent. I think it is important to let children spend their money, if they wish, so that lessons can be learnt about how things cost money and how we can make conscious decisions as to whether we want to budget for the bigger ticket items or whether some smaller ones are justifiable along the way. Letting children make their own decisions is a good one...but some guidance along the way is also important. "You sure you want to spend that money on a new toy instead of saving a little more for that teddy bear that you saw at the store with Grandma?" Remember, kids have short memories, especially when something immediately gratifying can be right in front of them. Allowing them to make their own choices will also give them a certain amount of independence and neither choice should be deemed a 'good' versus a 'bad' choice. Children must learn on their own, within limits.
Generally, after the age of about 5, it would be a good idea to set up a spending and a savings plan. This shows kids that they can still make the independent choice to spend but saving money is also important. Perhaps, some small chores can be incorporated, just enough to ensure that they understand that money must be earned. Of course, light chores are recommended at this age. You don't want an over-stressed child..but rather, something that is befitting their age and capabilities.
Once children are in their mid-teens you may want to add a little 'credit' to the situation. Give them a leeway of about $50 to 'over spend' with the intention of paying it back within a reasonable time frame. This will teach them that they can have that immediate gratification but the work must follow and payments must be made. You can even have the payments in increments. It is important, however, that you child gets 'paid' even though they owe you money because they may chose to only repay half instead of the whole 'pay-check' and this also helps them to manage their funds in a responsible way. Perhaps minimum payments should be understood and a 'credit' document be written up for them so they know their limits and expectations.
Once your children have entered their 20's they may well be ahead of their peers and they will make financially healthy decisions with their childhood experiences and your guidance, behind them.
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