Is buying now cheaper than renting?PLUS...Tornado survival!
Our Home & Wealth email launches a new format covering two topics, one focused on home, the other on wealth. This month on the home front, we thought it timely to share some advice on surviving tornadoes. The rash of twisters hitting our country this year reminded us that although some regions see more tornadoes than others, no state (including Alaska and Hawaii!) is historically tornado-free.
TORNADO PREPARATION
Plan your response. If a tornado hits, decide where you'd seek shelter in your home (more on this below) or in a solid nearby shelter you can get to quickly -- especially important if you're in a mobile home. Have a "go kit" ready, including first-aid kit, flashlight and batteries, identification, matches, copies of important financial documents, an extra set of clothes and other items you know you'll need if a disaster hits. Ask a friend or relative in another town to be an emergency contact if family members are in different locations when the storm hits.
Be forewarned. Find out how your community receives NOAA tornado watches and warnings and make sure you have access to them. They could come over local TV and radio channels -- or get an NOAA weather radio whose annoyingly loud warning tones will alert you any time of the day or night.
Get the facts: Know what part of your county you live in and the names of surrounding counties and the key geographic features in your region. Warnings are issued using this information.
Indoor protection: Avoid windows and protect yourself from flying debris. Go to the basement if there is one, or into a center hallway, closet or windowless room that's as far from the outside walls as possible. Get under some sturdy furniture and hang on.
Indoor myth: Open the windows to equalize inside and outside air pressure. Fact: It's the debris and the wind from tornadoes that cause damage, not differences in air pressure -- and that flying debris will "open" your windows anyway!
Outdoor protection: Lie flat on the ground in the lowest spot you can get to and protect your head with your arms.
Outdoor myth: If you can, take shelter under a highway overpass. Fact: The wind and debris will still reach you beneath an overpass. Again, emergency response specialists say lying down in a ditch or culvert is safer.
After it passes: Do not go into damaged buildings, but do watch for downed power lines and leaking gas mains. Stay tuned to weather reports, since one storm system may spawn several tornadoes.
RENT VS. BUY
Does it make more sense to buy a home rather than rent one? Here are the latest facts:
According to a national real estate website's data, it is now less expensive to own a home than to rent one in 72% of U.S. cities.
This percentage will likely increase because analysts feel rental costs are about to explode. The demand for rentals has increased with the economic downturn, while the supply of rentals has quickly dropped. In this scenario, the only place for prices to go is UP!
Even though home prices could still soften in some markets, the cost of owning a home may increase. This is because mortgages may soon get more expensive. Researchers with the Mortgage Bankers Association expect mortgage rates to rise the last three months of this year and continue to increase gradually through 2012.
For most folks, it makes utmost sense to buy a home at a discounted price and secure a 30-year mortgage at an historically low fixed interest rate. This lets you set your housing expense for the next thirty years--while rents keep heading skyward.
If you have any questions about your home financing or refinancing situation, please feel free to call or email. We're always glad to help.... Have a great day!
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