Santa Cruz Real Estate Market | A recent Wells Fargo-Gallup Investor and Retirement Optimism Index poll suggests that most Americans are saving up for future rainy days. 81% of U.S. investors claim to have some form of savings they can draw from if they lose their jobs. Before the financial crisis, Americans tended to use home equity loans and credit cards as emergency funds. Now they are returning to old-fashioned ideals of liquid assets in a savings account.
Mortgage companies have increased their down payment requirements in the wake of the banking crisis. It is essential to save money if you want to buy a home or invest in real estate. Here are five ways to increase your real estate nest egg:
- Save Your Virtual Change
In the past, we could literally dump our pocket change into a jar or piggy bank at the end of the day. This loose change could quickly add up to a few hundred dollars for groceries, entertainment or even placed in a savings account.
In our modern world, most transactions are done via credit or debit card. So Bank of America, American Express and several local credit unions have implemented a "Keep The Change" program that allows users to round the total purchase price up to the nearest whole dollar, then transfer the difference to your savings account. Call your local bank or credit card company to find out if they offer a similar program. - Education Matching Accounts
One easy way to add to your kids’ education savings is through a "Upromise Account". Membership is free and will allow you to effortlessly put savings away by making regular consumer purchases. Retailers participating in the program agree to match a portion of the purchase price and contribute it to an education savings account. Currently more than 600 companies participate including Gap, Apple, Barneys New York, JC Penney and Office Depot. After you buy from a participating merchant, you receive 1- 25% (depending on the purchase) of the purchase price. The money can be used to save & invest or pay down a student loan. More money set aside for your kids, means more money saved for other things. - Use Less Juice
A big expense that comes with owning a home is the utility bill. By simply replacing your existing light bulbs with energy-saving compact florescent bulbs, you can save a surprising amount of money. In addition to using 75% less energy than a normal bulb, florescent bulbs last 5-10 times longer. The initial cost is more, but over time they are a great investment saving the homeowner a lot of green. - Take Care of Your Car
Taking care of your car can save you cash. Check with a mechanic to see if you can downgrade from premium fuel to a lower grade without hurting your engine; the savings of 20-30 cents per gallon can easily add up to $100 or more a year. Improve your gas mileage by keep your tires properly inflated, replacing your air filter regularly to improve fuel efficiency and by keeping it under 60 mph–gas mileage suffers badly at speeds above 60 mph. Every 10 mph above 60 mph costs you an additional 10 cents per gallon. - Don’t Fear Negotiation
In this economy, some companies are willing to give you a price break or discount. But you can't get a deal unless you ask. Be reasonable and confident. Come up with a figure you think is fair and ask for a price break. Be willing to speak to the supervisor. Think of this as practice negotiations for when you are ready to purchase your home.
There are amazing real estate deals in today’s Santa Cruz real estate market. If you are ready to begin the purchase process… or need some advice before marketing your home, contact John Flaniken your Santa Cruz Realtor at 831-334-0890.
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