You’ve just received another rent increase from your landlord and you’re starting to wonder if it’s time to buy a home or condo. That’s the question many people are asking as rents continue to escalate across the nation. Buying a home is not for everyone, however, if you are wondering if it makes financial sense, here are some indicators that it may be time to purchase your own place.
The average mortgage payment in the U.S. is now less than the average rent. The median rent for a two-bedroom apartment in the U.S. is $1,330. But if you are in a high-cost city like San Francisco or Seattle, rents can run as high as $5,000. Renters in Austin, Chicago or Denver can expect to pay $2,000 or $3,000 for that same two-bedroom apartment. Rents have skyrocketed in many cities across the country; so high that many of us are paying 50 to 60 percent (or even more) of our income just to keep a roof over our heads. Most financial experts say you should only pay 20 to 30 percent of your income for rent, so something is out of whack.
When you weigh that against the average mortgage payment in the country, which is just over $1,100 a month (obviously higher in cities such as New York, San Francisco and Washington, D.C.), and mortgage loan rates that continue dropping into the 3 percent range, home affordability looks better and better. With a fixed mortgage your monthly costs stay the same over the term of the loan, unlike rents which can (and usually do) go up at the end of the lease.
Other economic factors that lean towards buying a home:
Rents are predicted to rise 2 percent each year, eating more out of your paycheck
Housing prices are rising, meaning they are a good investment against inflation
More couples are having children and planning on buying a home, which may create shortages and push home prices even higher
The costs associated with purchasing a home aren’t much more than first and last month’s rent, application fees and the security deposit required for most rental situations
Proponents of renting site the lack of maintenance and repair costs, as well as the freedom to move to a new area as reasons not to buy. However, renters never gain equity and they miss out on the tax advantages homes afford.
If you still have doubts, Trulia and Zillow have calculators that clearly show the current cost of buying a home is much less than renting. Run the numbers and see for yourself.
Before you buy, these are important things to consider:
Length of stay – unless you are investing in a rising market, you should plan on staying in that home for at least five to seven years
Down payment – to avoid mortgage insurance you will need 20 percent down; that may drain your funds
Don’t forget about closing costs – you can often negotiate with the seller on these but there will still be inspection, title company and real estate commissions to be paid and they can add up to thousands of dollars
Costs related to owning a home – local taxes, maintenance, repairs and insurance all add to the monthly mortgage so make sure you factor these into your budget
But there are other benefits beyond the budget to being a homeowner. You get to paint it the colors you like, knock out walls or add a room, change appliances and create the landscape plan of your dreams.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
California Casualty supports the many groups we work with in a variety of ways.
Recently, Partner Relations team members Brian Goodman and Tami Phillips paid a special visit to the Sonoma County Deputy Sheriff’s Association. They presented a token of our appreciation for the group’s heroic efforts during the disastrous fires that struck in October 2017. The deputies not only put their lives on the line for others, but also opened their facility to help coordinate firefighting and support efforts. SCDSA President Mike Vail accepted the plaque for all of the members of the association. A similar presentation was made at the Marin County Deputy Sheriff’s Association.
Another program California Casualty is proud to sponsor is the National Volunteer Fire Council’s Junior Firefighter of the Year and Junior Firefighter Program of the Year awards.
Please join us in congratulating the winners: Jared Hagen, of the Northwest Fire Explorer Post 1854 in Ohio, is the 2018 Junior Firefighter of the Year, and the 2018 Junior Firefighter Program of the Year is being given to North Carolina’s Gaston Volunteer Fire Department Junior Firefighter Program. They will be formally honored April 20.
In addition, California Casualty has given athletics grants to public schools since 2011. This year, student-athletes at 79 public middle schools and high schools in 32 states will enjoy a more level playing field thanks to the 2018 California Casualty Thomas R. Brown Athletics Grant Program.
Pictured L to R: California Casualty’s Scott McKenna presenting a Thomas R. Brown Athletics Grant to Somersworth Middle School softball coach Kaley Waterman, Principal Dana Hilliard with NEA New Hampshire representative Jeff Kantorowski.
Grants totaling just over $83,000 are going to help sports programs impacted by diminishing resources and budget cuts. Some examples include:
Purchasing a tackling and blocking sled to improve safety for the Crosby High School (Connecticut) football team
Outfitting the Somersworth Middle School (New Hampshire) softball team with new uniforms
Providing soccer and track and field equipment for the Santan Junior High School (Arizona) ADAPTS sports program for autistic students
Supplying balls and basic equipment for the Matt Garcia Career and College Academy (California) volleyball and basketball teams
More than $660,000 has been awarded to some 600 schools across the nation since the program began.
TAKEAWAY:
Learn more about the many ways California Casualty gives back to the individuals and groups that we serve by visiting www.calcas.com/newsroom.
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If you’re piling into your car or truck for Memorial Day fun, here are important tips to keep it from becoming a “Griswold Family” vacation:
Plan ahead – research the route and possible hazards and know the rules of the road in the new places you’re traveling to
Have your vehicle serviced – make sure it’s road-worthy by having fluids, tires, battery and other essentials checked and replaced
Prepare a safety kit – extra water, jumper cables, fire extinguisher, reflective triangles and sealant for flat tires can be trip savers in an emergency
Get plenty of rest – drowsy driving is dangerous. The effects of driving for 18 hours straight can equate to a blood alcohol level of .05; 24 hours straight is equivalent to a blood alcohol level of .10. Switch drivers or take a short nap if you feel tired
Always wear seat belts – safety groups estimate seat belts save 14,000 lives a year, yet as many as 10 to 20 percent of drivers don’t buckle in themselves or their passengers
Observe “move over” laws – every state now has a move over law requiring you to slow down and move over when you see an official vehicle with it’s warning lights on, to protect highway workers, first responders and law enforcement officers
Never leave children or pets in a vehicle – the heat inside a vehicle can reach dangerous levels in less than half an hour, even on 70-degree days
If you’re having a get-together instead of a getaway, remember these important safety tips:
Understand safe grilling – read grill instructions, check hoses, keep grills away from structures and never leave them unattended to avoid a disastrous fire
Check your deck – inspect and repair cracked boards, loose planks and rails, rusty hardware or rotted supports to prevent dangerous collapsing
Know pool safety – keep uninvited guests and small children out with full fencing, teach everyone in your family how to swim, never leave children alone near a pool, know CPR and consider removing slides and diving boards
Ensure you have enough liability protection – protect your assets with high liability limits or an umbrella policy in case someone sues if they get hurt at your home. Umbrella policies help pay for legal defense, medical costs and loss of wages
Whether you are home or away, some auto repairs may be more complicated. That’s why it’s important to have a reliable backup. Whether the battery let you down, your spare tire went flat or you locked the keys in the car, for as little as a couple dollars a month California Casualty’s towing and roadside assistance pays for:
Dead battery start
Flat tire repair
Lockouts
Fuel, oil or coolant delivery
California Casualty’s towing service also covers getting your vehicle to the nearest shop, even if you get stranded off-road in deep mud.
TAKEAWAY:
Contact our Customer Service department to add Express Road Assistance or to purchase extra liability insurance at 1.800.800.9410 option 3, or email service@calcas.com.
Read all the articles from the this edition of the Calcas Connection Newsletter:
Their little paws and happy faces have graced California Casualty for close to 15 years. They are the service dogs who temporarily call California Casualty home before heading off to become service animals for those with various disabilities.
Three of our employees are puppy trainers for Canine Companions for Independence, a nonprofit that provides service dogs for adults with physical disabilities, hearing issues, physical, cognitive and development disabilities, or for therapy in a visitation, education or healthcare setting.
If you have a pet-friend at home or work, you know how much joy and fun they bring. That’s how it is at California Casualty.
Each dog spends the first year-and-a-half of their life with a trainer getting socialized, learning commands and dealing with distractions. California Casualty, with a large number of employees with varying schedules and personalities, is the perfect place for their education, and the company encourages it.
While there have been as many as four pups roaming our hallways, there is currently only one – Darien, being raised and trained by Mary, one of our claims representatives. Darien is a year-old golden lab. He’s the 18th puppy that Mary has taken in.
She and her husband share a love of animals and a desire to give back to the community. Canine Companions was the perfect way to fit volunteering into their busy schedules.
The training has left a permanent bond between Mary and the pups. Mary keeps in touch with every dog, and each one remembers her when she visits, even a decade later.
Many people at work can’t wait to play with and puppy-sit Darien. One of those is Jasmine, who is convinced that spending time with Darien helps her as much as it helps him. “Darien makes me happy and makes my day go better,” she said.
Mary said that Darien is so popular that she often has to search to find where he has gone at various times of the day. “I know that many of my co-workers think Darien is a therapy dog for them, reducing stress and bringing joy to their day. They often come to my desk to give him pets when they are having a challenging day, saying how much it helps.”
Karen, the manager of our Learning and Development department, is another volunteer for Canine Companions. While raising puppies to go to others takes an emotional toll, she said it’s worth it knowing the joy and independence they give to those with physical disabilities.
We love the dogs that are fostered within our company walls, and we look forward to the pitter-patter of little paws and the boundless love when new ones arrive.
TAKEAWAY:
Learn more about Canine Companions and their dedication to helping others at www.CCI.org.
Read all the articles from this edition of the Calcas Connection Newsletter:
Our Education Blogger is a public school teacher with over a decade of experience. She’s an active NEA member and enjoys writing about her experiences in the classroom.
Making the Most of Your Summer Break Without Breaking the Bank
If you are lucky enough to have some free time during summer break, take advantage of it. Don’t let the summer days slip by. Make the most of your summer without spending much money!
Sleep In and Take Naps
How often do you really get to do this? According to the American Sleep Association, sleep is a basic, biological need, and if we are deprived of sleep, our bodily systems fail. The average adult needs about 8 hours of total sleep time each day (ASA). So, no need to feel bad about sleeping in that extra hour or taking a quick snooze on the couch during the day. It’s for your health!
Find Free Activities
Make a list of the free festivals, carnivals, fairs, and other summer activities that your city or town has to offer during the summer. When you notice you have a free day, see what’s on the list for that day and have fun!
Exercise
Use your summer days to get back into an exercise routine. Use your break to fine tune your routine so you can transition easily into the following school year. The best part about summer is that there are a variety of activities you can do: swimming, biking, canoeing, kayaking, skating, jogging, hiking . . . well, you get the idea.
Have a Staycation
It’s time to explore your own town or city. Take a stroll through a local hiking or nature area. Visit a local museum, zoo, or aquarium. Eat out at a new-to-you restaurant. Or simply lounge at the pool soaking up the sun.
Get Outside
There are many benefits to spending time outdoors. As the Harvard Health Letter titled “A Prescription for Better Health: Go Alfresco” says, spending time outdoors will raise your vitamin D levels, encourage you to get more exercise, make you happier, improve your concentration, and might make you heal faster.
Spend Time with Friends
Carve out time each week to have lunch with a friend, or a group of friends. Maintaining meaningful relationships is important to your well-being. The Mayo Clinic says there are many health benefits to having friends including boosting one’s happiness, reducing stress, improving self-confidence, reduced significant health problems, and longer life spans.
Get Ahead on Professional Development
If you have “extra” time during your summer break, think about squeezing in some professional development so you won’t have to work on it during the school year. Don’t have the monetary resources to take coursework? No need to worry, here is a list of 6 Free Professional Development Resources for Educators.
Organize
Take a few hours each week to do that “spring cleaning” you never got around to. Focus on one room or area at a time. Purge, clean, and organize. You’ll feel like you can tackle the upcoming school year with ease if you have a clean and organized home.
Recently, Partner Relations team members Brian Goodman and Tami Phillips paid a special visit to the Sonoma County Deputy Sheriff’s Association. They presented a token of our appreciation for the group’s heroic efforts during the disastrous fires that struck in October 2017. The deputies not only put their lives on the line for others, but also opened their facility to help coordinate firefighting and support efforts. SCDSA President Mike Vail accepted the plaque for all of the members of the association. A similar presentation was made at the Marin County Deputy Sheriff’s Association.
Another program California Casualty is proud to sponsor is the 
Pictured L to R: California Casualty’s Scott McKenna presenting a Thomas R. Brown Athletics Grant to Somersworth Middle School softball coach Kaley Waterman, Principal Dana Hilliard with NEA New Hampshire representative Jeff Kantorowski.
If you’re piling into your car or truck for Memorial Day fun, here are important tips to keep it from becoming a “Griswold Family” vacation:
Their little paws and happy faces have graced California Casualty for close to 15 years. They are the service dogs who temporarily call California Casualty home before heading off to become service animals for those with various disabilities.
She and her husband share a love of animals and a desire to give back to the community. Canine Companions was the perfect way to fit volunteering into their busy schedules.