America's Best Bargain Cities

Look who tied for #5!

~~~~

Provided by Forbes.com

Zack O'Malley Greenburg
Thursday, May 14, 2009

Try these places if you want to get the most for your money

Nearly a decade ago, after making a donation to a volunteer-run radio station in Austin, Texas, local librarian Red Wassenich was asked why he chose to support a broadcaster with a penchant for playing strange crooner music. "Because it keeps Austin weird," he said.

Since then, the phrase "Keep Austin Weird" has become the city's official rallying cry against the establishment of large chain stores near mom-and-pop shops--and, more generally, for maintaining the city's eccentric feel. The city may be weird, but perhaps more redeeming is that it's also a bargain to live there: Austin is the place where people pay the least to get the most.

"Austin has always been really different from the rest of Texas," says Wassenich, 59.
He's talking about the city's weirdness, but he might as well be talking about its affordability and profusion of job opportunities. Four other Texas cities make the list of America's Best Bargain Cities, but none come close to Austin, whose 5.5% unemployment is the best in the country and about half the national average.

Behind the Numbers

To determine which U.S. cities are the best bargains, Forbes looked at the country's 50 largest U.S. metropolitan statistical areas and metropolitan divisions--geographic entities defined by the U.S. Office of Management and Budget used by federal agencies in collecting, tabulating and publishing federal statistics.

We assigned points to metro regions across four data sets: Average salary for workers with a bachelor's degree or higher, from PayScale.com; annual unemployment statistics, from the Bureau of Labor Statistics; cost of living, from Moody's Economy.com; and the Housing Opportunity Index, from the National Association of Home Builders/Wells Fargo, which measures the amount of homes sold in a given area that would be affordable to a family earning the local median income based on standard mortgage underwriting criteria.
Austin earned high marks across the board.

"They have the triple-whammy of being a university town, a state capital and a technology center," says Al Lee, director of quantitative analysis at PayScale.com, a salary data aggregator based in Seattle. "It makes for a very robust economy and a great place for people to work."
Second on our list is Phoenix, Ariz., but what makes this city affordable isn't quite the same formula as in Austin. The real estate bust left the desert oasis as one of America's emptiest cities, which has also driven down home prices. As a result, Phoenix is one of the most affordable big cities in the nation.

Washington, D.C., rounds out the top three, thanks to an employment rate rivaled only by Austin. That comes as no surprise to Lee.

"Between defense spending under Bush and stimulus spending under Obama, it's been an incredibly strong time," he says.

Further on, the list includes a few places that may raise an eyebrow or two. Ritzy Cambridge, Mass., clocked in at No. 11 because of extremely high salary scores, while Detroit's rock-bottom housing costs earned the city a No. 15 rank--despite an astronomical 13% unemployment rate. That's roughly twice Austin's rate.

Lone Star Constellation

While the capital of Texas graced the top of our list, the rest of the state's large cities performed admirably too. All five of Texas' biggest burgs--Houston, San Antonio, Dallas and Ft. Worth--were among the top 10 best bargains. Not a single city in Texas ended up on our list of most overpriced places.

Part of the reason is that Texas offers some of the best incentives for entrepreneurs looking to start or move a business, according to Eduardo Martinez, a senior economist at Moody's Economy.com. Like Phoenix, Texan metros "have picked up a lot of California companies that have left because of high operating costs," he says.

Still, the state's future is far cloudier than its big blue skies. Martinez warns that Texas is vulnerable because of its exposure to America's foundering auto industry via manufacturing. The Lone Star State may also be aversely affected by the expected decrease in defense spending as contracts won in the Bush years begin to expire.

Back in Austin, though, residents are facing a different sort of challenge: To keep the city weird--and to themselves.

"Tell people not to move here!" says Wassenich.

In Depth: America's Best Bargain Cities

1. Austin, Texas
(Austin-Round Rock, Texas)
Cost of Living: 3 of 50
Housing Opportunity: 24 of 50
Unemployment Rate: 1 of 50
Average Salary: 20 of 50

2. Phoenix, Ariz.
(Phoenix-Mesa-Scottsdale, Ariz.)
Cost of Living: 13 of 50
Housing Opportunity: 14 of 50
Unemployment Rate: 6 of 50
Average Salary: 21 of 50

3. Washington, D.C.
(Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.)
Cost of Living: 38 of 50
Housing Opportunity: 21 of 50
Unemployment Rate: 2 of 50
Average Salary: 4 of 50

4. Fort Worth, Texas
(Fort Worth-Arlington, Texas)
Cost of Living: 16 of 50
Housing Opportunity: 10 of 50
Unemployment Rate: 8 of 50
Average Salary: 34 of 50

5. Cincinnati, Ohio (tie)
(Cincinnati-Middletown, Ohio-Ky.-Ind.)
Cost of Living: 9 of 50
Housing Opportunity: 7 of 50
Unemployment Rate: 23 of 50
Average Salary: 33 of 50

5. Indianapolis, Ind. (tie)
(Indianapolis-Carmel, Ind.)
Cost of Living: 13 of 50
Housing Opportunity: 1 of 50
Unemployment Rate: 17 of 50
Average Salary: 41 of 50

Read on for more lists, rankings and real estate coverage including stories on America's most overpriced cities and places where homeowners are the most in debt.
Click here to see the full list of America's Best Bargain Cities.

More Q&A on the First Time Homebuyer's Tax Credit

I've had a lot of clients recently ask me some more specific questions about this $8,000 (or 10% of the purchase price) tax credit for first time homebuyers. Here is some more Q&A about the tax credit:


If I'm getting married and my spouse already owns a home, but we both need to be on the mortgage for a new house, would I still qualify for the tax credit?

• For a married couple, if one person owned a home within the last 3 years and the other did not, they don't qualify for the tax credit. However, if an unmarried couple jointly buys a home, and one person owned a home (within 3 years) and the other did not, they can "designate" the tax credit to that person who will be able to claim it on their individual tax return.

I need my parents to co-sign on the loan for the house with me. Can I still get this tax credit?

• Yes, this rule also applies for parents to co-sign on a mortgage. The parents own a home. The son or daughter is FTHB—the child can claim the tax credit.

It's past April 15th and I've already filed my taxes. Even if I did buy a home this year, would I have wait until 2010 to get the $8,000?

• No. You can file an amendment for your 2008 returns and still get the money this year. I've already have a couple of clients who were in this situation and it took them about 6-8 weeks to get the check in the mail.

And here is a list of situations where you would not qualify for the credit:

• The taxpayer’s income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
• The taxpayer buys his home from a close relative. This includes his spouse, parent, grandparent, child or grandchild.
• The taxpayer does not use the home as his principal residence.
• The taxpayer sells his home before the end of the year.
• The taxpayer is a nonresident alien.
• The taxpayer is, or was, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• The taxpayer’s home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• The taxpayer owned a principal residence at any time during the three years prior to the date of purchase of the new home. For example, if an individual bought a home on July 1, 2008, he cannot take the credit for that home if he owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

If you aren't sure about how your credit is but maybe contemplated buying a home, feel free to contact me with any questions, big or small at rebecca.upton@century21.com

A photograph is usually looked at - seldom looked into. ~Ansel Adams

I just purchased my very first DSLR camera! I'm so excited to use it on some real estate. The only thing is, I have yet to purchase my wide angle lens, a necessity when taking real estate shots. The Canon EOS Rebel XS model is the one I chose to go with. Robert's Camera here in Indianapolis was having a spring sale and I got this camera with kit lens, 2 batteries, charger, bag, a lot of SD cards, more accessories, and even a free class at the Jewish Community Center that I will be attending on Tuesday evening! I'm looking forward to this class because it has been a while since I've held a SLR camera in my hand, and it sure wasn't digital.

Although we do hire a professional photographer who comes in to take the pictures, there have always been certain angles that I wished I would have had in hindsight. Re-shoots can also be expensive and I like to change our listing photos when the seasons change (hate to see those snow shots in the middle of July!).

Although I have had a lot of good photos come out with my little Canon Powershot SD450 (a little point and shoot) I always knew that I would not be able to capture those great interior shots the way I wanted. A while back when I was in my staging class, the instructor recommended us to get one of those $30 magnetic wide angle lenses to attach to our point and shoot. It worked in a way- we did get a wider shot which was great. However, the corners of the image were blurred that and the lighting was never great because I didn't have the right kind of flash. It's an essential.

I have had lots of compliments on my photos from my little camera, but at lot of it has to do with what shots I choose to take (which ones I know that my point & shoot can handle) and preparing the scene. Staging is a huge must in my book, because most of us can't see beyond the litter box in the bedroom or exercise machine in the dining room. I was flattered that a couple of agents were even upset with me on occassion because my pictures were deceptive (the house was not in tip-top shape, like the photos were showing) but hey, that's marketing.

So I'm still two accessories away from taking the perfect real estate photos, but I'm closer than before! I'll definitely post some pictures using both cameras, so you can see the difference.

Oh and if you don't think photos make a difference, check out one of the blogs that I follow: www.lovelylisting.com

There are very few monsters who warrant the fear we have of them. ~Andre Gide

So, I'm not really one of those people who likes scary movies or stories for that matter, but this one just really grabbed my attention. Mostly because, I'm pretty sure I showed this home to a client about a month and a half ago. I am now freaking out. Good thing they didn't write an offer or I would be hiding in the corner breathing into a paper bag. It was raining that day, and I had problems getting the lockbox open too. I don't usually show houses at this low of a price range (nothing wrong with it, but usually just don't have people looking in that range or neighborhood) but this was a "floor call" and so I guess I was the lucky person. Funny thing is, I've been following up with these people all this time and haven't heard anything since...



Today I heard on the radio broadcast of WRTV news that the house where Sylvia Likens was tortured & murdered in, was bulldozed. I had not really heard much of the story, and I'll spare those who don't want to know that gruesome details, but basically in the 1960's when she was about 16 years old, Sylvia's parents who were carnival workers, sent her and her younger sister to live with their neighbor Gertrude Baniszewski, while they were on the road working. They paid Gertrude $20 a week to keep the kids in line. This lady already had 7 kids of her own, by several different men who were abusive with her, and this may have something to do with her craziness and depression which lead her to torture & kill this poor girl.



Anyway, the house at 3850 E. New York Street in Indianapolis has a lot of history (actually listed with someone in my office at one point, bet they didn't know what they were getting into) but has never been able to hold an owner or a tenant steadily. At one time, it was a shelter for abused women, but it was boarded up and today apparently bulldozed.



There have actually been several movies (An American Crime) and books (The Girl Next Door) based off of the "most horrific crime in Indiana" but now that the building is gone, all that is left of this appalling case is rubble now, but hopefully after the dust settles she will be able to rest in peace.



Some articles related to the case:

Indy Star Library

The Cabinet

(Just an FYI, in our Indiana purchase agreements, there is a clause in there stating that we are legally obliged to inform clients of any craziness going on- so murders or big crimes yes, but if the neighborhood kids say the boogie man lives there, no that doesn't count. Had I written up a contract, the listing agent would have told us at that point because there is info in the system. Still, creepy!)

There are no passengers on Spaceship Earth. We are all crew. ~Marshall McLuhan, 1964

Happy Earth Day! I think for the most part, it's a good thing that the trend of going green has become more mainstream. At least people are aware of the direction that we need to head and with more companies realizing this, they are able to make products and services that are making it easier for people to do so. Here's an article that I snagged from BHG.com that lists 10 easy ways to go green.



10 Easy Ways to Go Green

by Kelly Tagore





Change a Light Bulb
Installing a compact fluorescent bulb (CFL) is the quickest, easiest way to save energy -- and money. Unlike incandescents, CFLs convert most of the energy they use into light rather than heat.
Good for You: They consume about 75 percent less electricity and last up to 10 times longer (10,000 hours as opposed to 1,500). Replace one 75-watt incandescent bulb with a 25-watt CFL and save up to $83 over the life of the bulb.



Unplug Things That Glow
Anything that has an LED (light emitting diode) that glows even after you turn it off continues to draw power (that you pay for). Your TV, cell phone charger, and printer are likely culprits. Unplug the offenders from wall sockets and plug them into power strips instead. When you leave a room, flip the strip switch to cut the flow of electricity.
Good for You: Unplug appliances and electronics that glow and you could save $200 a year.



Recycle Your Electronics
Americans tossed out a whopping 5.5 billion pounds of electronics -- TVs, stereos, cell phones, and computers -- in 2005, according to the Environmental Protection Agency. The result? Millions of pounds of chemicals and heavy metals ended up in the ground even though it's easier than ever to recycle electronics. The Consumer Electronics Association created mygreenelectronics.org to help people find a recycling resource in their area. The site also provides a list of electronics, from laptops to baby monitors, that are easier on the environment and your energy bill.
Good for You: The average American household has three cell phones stashed in a drawer. Sell unused cell phones to greenphone.com. You'll receive about $35, and the phones will be refurbished and resold. If 1 million people recycled one cathode-ray tube TV this year, we'd keep 4 million pounds of lead out of the ground.



Audit Your Energy
It's easier to save energy when you know exactly how much and where you're using it. Investing in a home audit takes a couple of hours and pays off with a list of things you can do to curb consumption. Find an auditor through your utility company (at low or no cost), or hire one ($450-$650). A list of auditors certified by the nonprofit Residential Energy Services Network, is at resnet.us (click on Consumer Information).
Good for You: On average, an energy audit shows how to save up to 30 percent on utility bills.



Support Local Farmers
If your food could talk, it would tell quite a tale. Typical grocery store produce travels nearly 1,500 miles before it ends up on your plate. All this traveling burns fossil fuels and results in carbon emissions -- a fancy term for pollution. Buying from local farmers means you're not only getting the freshest food possible, you're saving energy.
Good for You: To find farmers nationwide, visit localharvest.org, sustainabletable.org, and the U.S. Department of Agriculture at www.ams.usda.govfarmersmarkets/map.htm.



Fix That Drip
When you next fill your water glass, think about this: We each use about 100 gallons a day, enough to fill 1,600 glasses. Household water consumption has increased by 200 percent since 1950, even though the population has grown by only 90 percent. As a result, more than 36 states are expected to face water shortages in the next six years. Stemming the flow is as easy as fixing a leaky faucet or toilet; a dripping faucet can waste up to 74 gallons a day, a leaking toilet up to 200 gallons a day.
Good for You: Repair a leaky toilet and you can save $30 a year, which may not sound like much until you realize it means 73,000 gallons.



Let Your Grass Grow
Spending less time tending to your lawn actually makes it greener -- in every sense of the word. Most grass species fare best when they're kept at least 2 1/2 inches tall. The length creates more surface area to absorb sunlight, which creates thicker turf and deeper roots, which means you won't need to water as often.
Good for You: Save money by letting grass clippings remain on your lawn; it adds nitrogen to the soil and discourages weed seeds from germinating. You'll need less fertilizer and herbicide. Plus, leaving clippings on lawns means less in landfills; in 2005 Americans disposed of more than 12 million tons of yard waste.



Look for the Label
When it's time to replace a household appliance, choose a product with an Energy Star label. Sponsored by the EPA and the Department of Energy, the Energy Star program rates products from light bulbs to kitchen appliances. Energy Star labels guarantee that products are energy-efficient. For example, a battery charger labeled with the Energy Star logo will use 35 percent less energy than a standard one. You may even be eligible for a tax credit when you purchase an Energy Star product. Information at energystar.gov.
Good for You: A household with Energy Star products uses about 30 percent less energy than the average household -- an annual savings of about $570.



Do Full Loads
Whenever you wash just a few clothes or dishes at a time rather than waiting for a full load to accumulate, you're wasting water, power, and money. The average American family of four washes about 540 loads of laundry a year, which consumes up to 21,000 gallons of water, and more than 150 loads of dishes, which uses about 1,500 gallons. Most of the energy consumed by washers goes toward heating the water -- about 90 percent in the clothes washer and 80 percent in the dishwasher. Combining half-loads, choosing short cycles, and using cold or warm rather than hot water in the clothes washer racks up savings.
Good for You: Wash two fewer loads of clothes and one fewer load of dishes a week and save up to 4,500 gallons of water a year.



Work the Critters
Your backyard ecosystem is as intricate as any wild patch of land, and it pays in many ways to enlist its creatures on your side. Birds eat many insects; they just need a water source and trees and shrubs for cover and nesting. Many insects are beautiful -- and beneficial. Ladybugs aren't just cute; they are voracious eaters of aphids.
Good for You: To understand which backyard insects are garden friends, visit garden.org and click on Pest Control Library for photos.