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Archive for May, 2009

We encourage our kids to plan for their future, but we seldom include buying a first home sooner than average as a path to building that future. Let them know buying a home is easier than they think.

Most of the people who read this column are not first time homebuyers. The fact of the matter is many of you that are first time homebuyers and reading this article are relatively mature individuals who are fighting off your commitment fears of being tied to a mortgage. But there is a huge segment of the population that could buy their first home, yet it doesn’t occur to them to do so. Who are these people? Well, it’s your 24 year old son or daughter, new to the work force, and is throwing away money on rent somewhere. Encouraging your children to buy a home when they are young is some of the soundest financial advice you can give them. Equity in a home is an easy way to grow one’s portfolio with very little investment. But the fact of the matter is it doesn’t occur to most of us to encourage the younger generation to buy early in their lives. And trust me, it rarely occurs to our kids themselves to consider buying a home in the early twenties. They are more concerned with buying a new Halo 3 for their Xbox.

Why do so many people miss the boat on this opportunity? It could be they plan to be in the area for only a short time because they will job hop to advance their career, thus viewing a mortgage as “too permanent.” I counter to simply sell the house when you move. Or maybe they expect their income to double or triple over the next three years. I say buy a home now, then upgrade to a new home; sell or rent the old house. Investing in real estate is a proven, safe and solid return on investment. And with the right combination of credit history (or a history of paying utilities, cable and your cell phone on time) and no money down, you or someone you care about can start investing in the future.

When Junior starts his new job at the company and 401(K) is available, he’s been informed by his folks, boss or peers to enroll and contribute at least a little something to it with every paycheck. Yet, he is rarely counseled quit renting that apartment for $750 a month and buy a $75,000 house. Where will he come up with the money to do it? There are multiple options for first time buyers that allow for 100% financing. Get the seller to kick in closing costs (up to 6% of sales price with some products), and one can close on a loan and bring no funds to the table. If your home value appreciates 4% in the next year, that’s a nice return on a no cash investment.

For some time, I’ve considered writing this series for first time buyers to let them know buying a home is easier than they think. But, the more I thought about it, the more I realized the advice I would offer would most likely not reach my target audience. So parents, it is up to you to supply your kids with this last little bit of advice and help to set them free to further establish their independence in this world. Clip this article out and tape it to their iPOD or the steering wheel of their car – someplace it will get noticed.

I think for most of us who have been through the experience, our first home buy was a very daunting experience. There are so many choices and unknowns – it can be overwhelming. In this series, I will try to break it down the process into small logical steps and make it easier understand the steps involved in financing your first home. Where do you start? That is perhaps the easiest part. Our newly established worker should first make a list of all his or her debt obligations such as student loans (unless deferred), car payments, credit card debt, etc. Hopefully at this age, this will be a small list. Then add what you think amount you could afford for a mortgage. Take that amount and divide it by your gross monthly income. If you come in at 43% or less, you’re in business. If you have something in your savings or checking – great. If not, don’t let it deter you. You have options.

Contact a mortgage specialist to drill out the details and find a good realtor who knows your market for housing you can afford. What next? Get ready to tell your landlord “Adios!.”

Most people are familiar with the dangers of carbon monoxide, but very few know of the dangerous gas, radon, that can be in found in your home. And, like carbon monoxide, radon exposure causes serious threats to health, and thousands of deaths a year.

Scientific studies indicate it is the second leading cause of lung cancer with smokers having eight times the risk of non-smokers to radon exposure. It is estimated by the U.S. Environmental Protective Agency and the Surgeon General’s Office that 20,000 people die each year from radon exposure and is responsible for over $2 billion a year in health care costs.

I didn’t know what radon was until I did some research on it. The dictionary defines radon as a colorless, radioactive, inert gaseous element formed by disintegration of radium. Radon is found beneath your home in the soil, of naturally decaying radium and uranium the soil, rock and water and gets into the air you breathe. So when you breathe the air that has radon, (you are actually breathing a radioactive gas), your chances for lung cancer increase especially if you are a smoker according to the Surgeon General. Radon can enter your home or any type of building through well water supply, cracks in the floors, walls, service pipes, gaps and cracks in the building materials of your home and the amount of radon varies with each house. Soil and water are the two main sources of radon entering your home.

It is estimated that one out of fifteen homes in the U.S. test for elevated radon levels. Radon is odorless, colorless, tasteless and invisible. The only way to know if your home has elevated radon levels is to test for it. The good news is that there are a number of things you can do to protect you and your loved ones. First, buyer-beware. If you are planning on purchasing an existing home, or renting an apartment, it is important to have the structure tested for elevated radon levels. If you are considering building a new home, you can include radon resistant features, or ask the builder of a new home if it has these features. Testing is very easy and inexpensive and home kits are available in hardware stores, through the mail and internet sources for measuring levels of radon. Of course you can always hire a qualified tester to do it for you through your State Radon Office.

If your home tests for elevated levels of radon, there are a few things you can do. One way to reduce the levels of radon in your home is to use a soil suction radon reduction system (a vent pipe and a fan), and sealing foundation cracks and openings. Warm air rises in the house and exits through the attic and upper floor windows creating a suction action, pulling radon out of the soil up into the house, much like a chimney. Once you have tested and taken preventative measures, it is important to monitor any radon leaks that might occur by installing a radon detector. We have all heard about how every home should have a carbon monoxide detector, and smoke alarms. A good radon detector should be added to this list for the safety of you and your family.

The small solar-power generator for homes is waiting to be built as of today, 2008. Parts and components for a solar power generator have been invented, developed, and are in operation for many years, but the full electrical equipment that powers up a home, has not been integrated and is not ready for the market place.

The home power generator (HPG) based on sun heat requires a small solar dish to collect the heat, a small Stirling engine capable of moving a 3 KWh electrical generator, the power generator and a battery system to store one or two days generated electricity. The battery bank would then supply 24/7 electricity to any outlet upon demand. An additional gas heater installation can be included to backup the lack of sun light, making the system a reliable alternative. Components for this home power generator have yet to be integrated into an appliance homeowners can buy at Sears, Home Depot or other stores, and have it installed.  Larger Power Generators using Stirling Engine are a reality and have been developed by Infinia Corporation for the California Solar Plant.

CENTRALIZED POWER GENERATION

Large power generation and distribution companies, are staying away from the home markets. There are 44 companies in the United States that generate and distribute electricity, with 403 billion in revenues, making profits of 36 billion p/year, who wish to continue charging each consumer forever. Developing technology for homes can hurt their central power generation business. Although their plans may include the diversification of their power source, such as: nuclear, hydro, solar, thermal power, as well as, continuing the use of coal, natural gas, oil, it does not include the home power generation market.

Sunlight is the only energy available to all homes, free of charge, provided by God and nature. If sunlight was harness by each consumer to power up their home, central power generators and distributors may not be needed. Other power generating technologies coming from thermal power, hydro or nuclear power, are innocuous to these utility companies, because home owners will never use these energy sources to generate their own power. Thus we can expect that current power utility companies will continue to use these traditional sources of energy extensively, and will defer and try to derail home solar technology as much as they can, as long as they can.

When no other alternative existed for obtaining electricity as we have had in the past, electricity supplied from these large plants was welcomed. But today, with so many more technologies available, large power generation plants and centralized business model is highly inefficient because: 1. consumers pay more and forever, to these virtual monopolies; 2. homes need to be within the reach of the electrical grids, remote country homes not tied to the grid need to find other ways to power up their home; 3. flying electrical cables through the streets provide for visual contamination and make streets and neighborhoods look bad; 4. the land used for laying down the high tension cables is about 3%; 99% of the power generated comes from contaminating fuels, either fossil fuels or radioactive materials; and lastly the expensive investment plant model inhibits poor countries from obtaining electricity. In essence the centralized power plants have American paying electricity forever, and are the direct cause for poverty and starvation in the world.  Please read on Poverty generation:  http://www.articlesbase.com/politics-articles/poverty-and-the-new-world-order-809385.html



We need to understand that insisting in generating electricity via very large plants, without the development of the Home Power Generator, creates world poverty, inhibits poor countries from obtaining electricity, inhibits people in those countries to produce food and make products to generate an income which can sustain themselves, and comes back to the USA in terms of the help we need to provide but always as charity. 

BUSINESS OPPORTUNITY

Since FPL, Duque Energy, Constellation Energy and the other 39 companies are incapable of developing the HPG, other investors are need to develop this light weight Solar power generation industry. , similar to the Air conditioning manufacturing plants. Development and fabrication of the HPG would be the integration of the 4 components, which can be produced or outsourced by the investor, making the investment accessible to smaller investors. The HPG appliance will be maintenance free, operating cost free, can be sold all over the world, to power up homes and eliminating the electricity cost of those using it.