Real Estate Information Archive

Wasted Water

Monday, July 25, 2011

by Mike Parker

A typical household uses 185 to 300 gallons of water a day and the majority of it goes down the drain from the toilet and the shower. Updating your commodes will serve as a conservation effort while lowering your water bill.

Today's toilets use less water, prevent staining and resist clogging better than the older toilets and you might be surprised at how easy they are to install. Replacements generally cost from $100 to $300.

Toilets made in the 1950's used, on average, seven gallons per flush. Compare that with one that only uses 1.6 gallons per flush and it's a big saving. Multiply by the times a toilet is flushed in a year and the number of toilets in your home and it will save a lot of water.

Gallons of Water Saved in a Year with 1.6 gpf
Age of Toilet	Gallons Per Flush	Flush 3 times a day	Flush 5 times a day
Prior to 1950's	7.0	5,913	9,855
1960's	5.5	4,271	7,118
1980's	3.5	2,081	3,468
After 1994	1.6	-	-

Watch this video to see how easy the project is done and even if you decide to hire a plumber, you'll have a better understanding of how it works.

mike parker water

I Want A Bigger/Nicer Home But...

Monday, July 18, 2011

by Mike Parker

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can't sell their home for what it is currently worth.

Buying up in a down market is actually advantageous because while you might get less for the home you're selling, you're also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you're waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision.

mike parker home buying

Targeting the Mortgage Interest Deduction

Monday, July 11, 2011

by Mike Parker

It's obviously going to be a Herculean task for Congress to balance the budget and reduce the deficit. It's sort of like the country song lyric that goes "everyone wants to go to Heaven but nobody wants to go now." It is estimated that the mortgage interest deduction cost the government $100 Billion last year which is why it is a target for cuts.

The Mortgage Interest Deduction has been part of Income Tax laws in this country since 1913. The United States of America is one of the few countries in the world that allow such a deduction. Our goverment has always supported homeownership as is evidenced in the different tax benefits it receives.

Mortgage interest deuction up to $1,000,000 in acquisition debt on a principal residence and second home
Deduction of interest on Home Equity debt of $100,000 over acquisition debt used for any purpose
Capital gain exclusion on up to $500,000 for married couples filing jointly and $250,000 for single homeowners
Favorable long-term capital gain rates if gain exceeds exclusion limits
Property tax deduction

There is an interesting relationship between a good economy and a healthy housing market. Contrasted to profits from the stock market which tend to be plowed back into other investments, profits from home sales tend to be spent on consumer products that directly benefit the economy.

The National Association of REALTORS supports the MID and reports that one job is created for every two homes sold. It further states that $60,000 is pumped into the economy for each home sold and that homeownership accounts for over $2 Trillion of the U.S. gross domestic product.

American homeowers are currently paying 80-90% of all federal income tax collected. Some economists believe that a healthy housing market is a leading indicator for economic recovery and that tampering with a significant homeowner benefit like the mortgage interest deduction would hurt the economy.

mike parker mortgage interest deduction