City of Solon Automatic Garbage Pickup Truck

Home Buying and Remodeling Hype

Cost of buying a home over 30 years

The costs of buying a home over 30 years

Zac Bissonnette writes about real estate and remodeling hype:

Your home is not an investment: Really, it isn’t. An investment is something that gives you money and an expense is something that costs you money.  Therefore your primary residence is an expense.  Real estate may well be a fantastic investment, but primary residences are only good investments to the extent that they’re cheaper than renting.

The most common type of residential property, a single family dwelling, does not produce a positive cash flow.  In areas of transient population, par employment conditions and moderate to low population growth projections, this is particularly true over the long term.

Pouring money into your home is not an investment: There’s certainly something to be said for “investing” in your quality of life but in financial terms, it’s a much better idea to put money in a savings account or use it to acquire an investment property than it is to pump cash into your primary residence or vacation home.

The intangible benefits of owning a home are significant.  However home ownership equation should include job stability and security, employment opportunities for self and family members, hospitable weather, recreational opportunities, personal lifestyle factors and Plan B.

The longer you plan to live in a home, the less financial sense it makes to pour money into it: If you are planning to stay in a house for five or 10 years, recognize that almost no home improvement projects qualify as investments. The reason is that projects like kitchen and bathroom remodels depreciate quickly.  A 15-year old bathroom will likely be remodeled by the buyer, so it’s not a value-add.

Don’t fix something that is not broken.  Make do with what you have.  Keeping up with the joneses ain’t smart despite the debatable notion that we live in a image based society, its not parallel with American values.

Real estate agents are salespeople.  Some are real estate experts.  Most aren’t:  Getting a real estate license requires a few hours of classroom instruction and a multiple-choice test, much of it covering legalese and ethics.  It’s entirely possible to become a real estate agent without knowing anything about anything, and many agents are completely worthless.

Folks should look into having a real estate attorney represent them in the most expensive purchase of their lives.  Good real estate agents are hard to find, they are not as easy as finding a needle in a haystack!.  Finding a good real estate agent that will represent the principal’s interests well is harder.  I don’t think the current real estate system is designed to totally protect the consumers, in some cases, it does just the opposite. Consumers have to be responsible.

Reading Terminal Market

The must see Reading Terminal Market in Downtown Philadelphia

The must see Reading Terminal Market in Downtown Philadelphia

Reading Terminal Market is an enclosed public market found at 12th and Arch Streets in downtown Philadelphia, Pennsylvania. Over 80 merchants offer fresh produce, meats, fish, groceries, flowers, baked goods, crafts, books, clothing, and specialty and ethnic foods. Every space in the market is rented out; three of the vendors are descendants of original market merchants. The market is open every day of the week.  The Pennsylvania Dutch merchants (a small but significant minority) generally do not operate Sunday through Tuesday.

Traffic signal counters funneling effect in Solon

Traffic Signal Warrants

Traffic Signal Warrants-Institute of Transporation Engineers

Traffic Signal Warrants-Institute of Transporation Engineers

Traffic Signal in City of Solon

The April 16th, 2009 hard copy issue of The Solon Times (Volume 32, Number 32) published an article titled Finally, city sheds light on ‘funneling‘ by Sue Reid.  The article reported that City of Solon is in the process of potentially considering and approving installation of traffic signals at SOM Center Road/Lisa Lane intersection and SOM Center Road/Blue Heron Drive intersection at a cost of approximately $170,000.

SOM Center Road is a four lane arterial street through City of Solon and City of Twinsburg.  SOM Center Road narrows to two lanes in City of Twinsburg.

South bound traffic:  The decrease in the number of lanes (from 4 to 2) of  SOM Center Road  necessitates merging of traffic and this merging is referred to as the funneling effect, I think.

North bound traffic: North bound traffic on SOM Center Road, from City of Twinsburg towards City of Solon encounters the increase in lanes (from 2 to 4).  These wider and additional lanes provide an incentive to the  motorists to speed above the posted speed limit of 35 mph.

Traffic experiences delays when making turns from local side streets, Lisa Lane and Blue Heron Drive, to arterial SOM Center Road.

solontrafficsignal

Proposed City of Solon Traffic Signals near Oakview Estates and Summerset Subdivisions

Click on the aerial picture to enlarge it.  Check out the proximity between Lisa Lane/SOM Center Road intersection and Blue Heron Drive/SOM Center Road intersection near the city limit.  Some City of Solon residents in Oakview Estates subdivision and Summerset subdivision on the south side of City of Solon understandably felt unsafe, at certain times, while making turns onto SOM Center Road.  A couple of important lessons for urban planners and traffic engineers here, I think.

City of Solon Traffic Signal System

City of Solon Traffic Signal System

Location Location Location

If you are home buyer, one additional consideration should be safe entrance into and exit through the subdivision.    A signalized exit and entrance provides for the safest traffic conditions.  I reckon Summerset subdivision and Oakview Estates subdivision residents in City of Solon should be mighty pleased with this, not sure what traffic on SOM Center Road would think about it.

Do you need a real estate agent?

Summerset subdivision in Solon has one of the best designed homes that I have ever seen.   This Solon real estate property owned by a self described fussy owner.  I was impressed with the design but what impressed me about the owners of this home was that they were not using a realtor to sell this home.

City of Solon, Ohio: Skate Park

City of Solon Skate Park

City of Solon Skate Park

This 100k skate park has been a source of stubborn problems for the City of Solon and users of Solon Community Park.  Click on the picture, (exposure compensation = -1) to enlarge it.

The Amish Intellect

Amish

Amish fishing in Lake Tomah

“We want to be producers, to be an overall good to the community and to the nation and not be dependent upon the nation for our livelihood or for the federal or state governments to give us our livelihood,” – David Kline, an Amish minister from Mount Hope, Ohio.

Source: Money or tradition: Indiana Amish face uneasy dilemma by Tom Coyne, Associated Press Writer, May 10, 2009

Earth Day celebration in City of Solon

Free food at Earth Day at Solon Community Center

Earth Day celebration at Solon Community Park

City of Solon Service Department Truck

City of Solon Service Department Truck

Sewer Camera?

Sewer Camera?

City of Solon’s Earth Day celebration at the Solon Community Park was a home run.  Folks were lining up for mulch and the paper shredder.  Perfect weather, free food, bad day for Debbie Downer.

The picture is that of  City of Solon’s sewer camera truck, I think.  I think the City of Solon has allocated significant resources and has made significant progress in mitigating  stormwater flooding and sewer backup issues since the June 2006 flood.

If you are considering buying a home in an area that is prone to basement flooding, it may be worth it to find out if the property has an existing backwater valve or needs a backwater valve.  The better backwater valves are not inexpensive.

One would think that real estate agents would be obligated under their fiduciary responsibility to give potential home buyers  hints about significant and publicized events like the major flood events.  Further, some homeowners insurance policy may require that the property must have a backwater valve to be covered against flooding due to sewer backups.

Backwater Valve

Backwater Valve

Related Post: Backwater Valve