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Alright, our lease to the apartment is coming up.
Time really flies because it seemed like yesterday when I was writing about whether we should move. At the time, management from the apartment complex helped push us make a decision by offering a 10% discount if we signed on the dotted line the day we were at the office. What’s also interesting to note is that the discount would only last for the term of our lease, which implied that when the lease is up, our rent would go up at least 10%.
A year later with the undeniable burst of the greatest housing bubble in history and the start of a severe economic downturn, I was convinced that we as tenants have the upper hand. I received a letter 2 weeks ago that said:
We are offering you to renew now to receive no rent increase! With an average rent increase of 3% during 2008, we foresee a higher monthly payment for you without immediate action….
I have time and maybe it’s better to talk to someone. So trash it.
Last week, I walked into the leasing office and explained that my lease was up. Immediately, the manager told us that we should be expecting a letter from management in a week or so explaining that if we decide to renew our lease, we would get a discount from what we pay now. The final amount is based on the length of the lease terms, so it’s hard to tell right now but the longer the tenant commits, the lower the rent.
As I write this post, I have the letter with the final lease terms. Basically, they are:
- Renew lease for 12-13 months at the same rate
- Renew for 14-16 months with 1.5% discount
- A new 17-18 lease will have a 3% decrease
- If I don’t respond by 2/11/2009, my lease terms will end and I will be automatically enrolled into a month to month lease with a 15% rent increase!
Not as much as I was expecting and can I just say that the month to month increase is crazy? Since those crazy increases from my last landlord, I’m again reminded of the extra troubles of renting!
At this point, I can:
- Just agree to a 12 month lease (it’s not a bad idea, but it’s disappointing that the rent didn’t go down)
- Try to find a place to move even though other properties/units have comparable rents
- Rethink the whole strategy and get ready to buy a house instead (Originally, I thought waiting till 2010 was a good idea as I believe Southern California is going to have a tougher housing market than most in the next few years. I know the house shouldn’t be considered strictly on dollar terms but hey, no point throwing money down the drain right?)
So there you have it, my lease, a glimpse of my thoughts about buying a house and where I should live in at least the next couple months. What do you think I should do? Let me know! You opinions are great appreciated!
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Let’s be honest. Some people are just more considerate than others.
These type of people always seem to understand how you feel. You want to be with them but do you ever want to be them? Do you think of each situation as if you are in the other person’s shoes?
Someone was helping me with a logo recently. She didn’t charge me for it, but she still found the time to send me a couple emails along the way to let me know what she’s working on and when I should expect the final design. When she missed the dates she promised, she explained why and apologized even though those recent events made it impossible for her to do what needed to be done.
It’s these types of people that I feel so lucky to be around. The completion of the work probably wouldn’t matter much to her (after all, it was for free and it was a personal favor for a friend’s friend!), but she still took the time to communicate and let me know what’s happening. On the other hand, I probably would’ve been wondering what was happening and would feel uneasy as I keep myself from asking her because I didn’t want to annoy her!
[Read the Rest Here…]
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Other than those days surrounding the holidays, the parking lot of the plaza close by spent most days the last few months being empty. That’s why it was so surprising when I saw people and cars everywhere when I went there last Sunday! It’s only been one day (especially since this is the weekend until the real work week of the year begins) but I’m not sure if I want this to become a trend.
Our economy probably needs us to shop irresponsibly again, but the thought that we might be back to “living beyond our means” is scary. I never understood why, but America is one of the only developed countries where the average resident consumes more than his/her income!
Some people blame the educational system for not having personal finance classes, but there are ways to learn outside of school too! It’s not like my teacher taught me how to use the toilet. I don’t know about you, but I learned because:
- I had to (out of necessity) and was told about this fact
- It never occurred to me that there was an alternative
- I did it enough times so I could do it without thinking
Maybe why I save while most people don’t is simple. I thought I had to save, I didn’t think borrowing was a lasting alternative and once I got used to saving, I just didn’t think about it anymore.
[Read the Rest Here…]
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Speaking with high earners about the paycheck not being enough always turns into an satisfying chat. Even though the reasons are usually common (you just don’t know my situation being the most popular), we always end up with a good resolution. Why? Because no excuse passes the “the average income per household in 2007 was $50,233″ test (source: US Census Bureau).
Why can so many families live below $50,000 a year while others earning 4 times in the same country still feel poor? If you are wondering the answer to this question yourself, or if you feel like the paycheck is never enough, here are 5 suggestions for you:
[Read the Rest Here…]
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The start of the year usually means that I should keep my eraser close while I keep correcting 2008 whenever I write dates!
2009 will be great though (like I keep saying) because now that you regularly come visit, you have at least made the commitment to really focus on being responsible with your finances!
Before you get ready for the true start of working full force tomorrow, why not check out some of the interesting articles I found during the last week?
[Read the Rest Here…]
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I got a chance to ask a fellow blogger a few questions the past few days and I want to share them with you! Enjoy!
No Debt Plan is about getting and staying out of debt with a plan. Kevin, the author, is passionate about budgeting, saving for the future, and using goals to reach financial freedom. You can subscribe to his blog by RSS or email.
This interview is part of a new feature he’s developed called Subscriber Swap Saturday. The basic idea is to get the subscribers of one blog to subscribe to the other blog for at least a week, just to try it out. After a week if you don’t find that blogger’s content enticing, drop it. The hope is that over time you will find several writers that you weren’t familiar with who provide meaningful content to you. You can read more about Subscriber Swap Saturday at his blog.
Q: The greatest part about writing my blog has been the ability to learn from my readers. What would you say is the most important lesson your readers taught you since the blog started?
A: Great question. I would say that readers have taught me that even if there is a well known correct way to do something, that way may not work for every person. It kind of goes along with what Dave Ramsey says about money being 80% psychological. I don’t agree with that, but I will grant that your mind has something to do with it. People think differently than what is plainly obvious to be right. I think our duty as bloggers is to deal with that different mentality in a positive way — turning the readers thoughts into positive progress.
Q: How is your debt repayment process coming along and what is your view on your progress?
A: Well to be honest the only debt we have right now is our mortgage and my deferred student loans. We pay off our credit cards every month and have no other debt. The student loans are essentially pre-paid — we have the money sitting in the savings account earning interest while we wait until I graduate.
The mortgage is another issue entirely. We’re a little more than one year in and, well, it’s going to take a while.
Q: New years bring new resolutions. What would be your #1 goal for 2009 that is non-financially related?
A: To be a better husband. That seems cliche, but I have been really busy in the last year with work, blogging, and my MBA work. It’s not that I’ve been a terrible husband, but I’m looking forward to graduating and getting that huge time commitment off of my plate so I can re-focus my attention on my wife.
Q: I’m just throwing this out in the blue and see what you think. Do you think it’s easier for the generation X or Y to retire rich and why?
A: Well first I need to define each generation. I’m going with Wikipedia and saying Gen X runs from 1965-1980, and Gen Y from then to 2000.
I think Generation X is going to have it easier than us Generation Y-ers for a few reasons. Generation X grew up in a more simple time (believe it or not). There was no internet. Life, business, and finance did not move at the pace that it does currently. Gen X worked jobs for 20+ years and retired with the golden watch and a pension. Not that there have not been struggles — just as they start to retire the investment world loses 50% of its value. That’s rough.
Generation Y is going to have more hurdles and a more complex world to live in. As I said, the internet is an amazing medium, but it greatly complicates things. There are more people out there trying to take your money, and more ways to lose it (identity theft, hacked accounts, etc.). There are most likely more “good” investment choices out there, but I’m not holding my breath that a majority of us are going to make wise decisions.
Want to know more about me? Check out Kevin’s post where I answered some of his questions!
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2008 was incredible for the blog and I’m happy to say that I’m able to share with more and more of you as the blog grows to new heights! In 2009, I will continue to reach out to more people so if you know of people that may benefit from the writings of this blog, encourage them to visit!
As with tradition, here’s a recap of some of the best post of the month before!
Frugality
Wealth and Investing
Others
See you around for the rest of the year!
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2009 is going to be great because:
- We are going to improve ourselves
- We are going to save more money
- We are going to waste less money
2009 is going to be a great year because we will make it so.
Happy New Year!
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