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Run Down Towns: A Tale of Two Cities

August 22nd, 2010 Little House 9 comments

Town A: Deodar Oaks on White Oak. Remember the scene in ET when they fly over trees on their bikes? This is the street.

Town A: Deodar cedars on White Oak. Remember the scene in ET when they fly over trees on their bikes? This is the street.

The Deodar cedars line the sleepy street of White Oak to the north of where I live. The trees tower many feet over the well-manicured homes, set back far from the street. The wide avenue, built to handle plenty of cars, sees but only a few with one single stop sign at the end of the block. A couple walks their small, white toy poodle down a quiet residential sidewalk covered in a blanket of pine needles.

Five miles south on the same block renowned for its cedar trees (yet are predominately lacking), I look out my window and see a beater van parked indefinitely outside of my home. A group of five men from the nearby wayside house, quietly disguised behind a large, black fence, saunter down the sidewalk. The alley where I enter and exit from my garage is riddled with graffiti of the unattractive kind.

Though only five miles apart, the scenes from my current neighborhood and the one I grew up in are worlds apart. The “Valley”, once known as a rustic get-away for the celebrities of yester-year, has grown into a hodge-podge of seedy neighborhoods intermixed with a “good” pocket every now and again. The valley is perplexing; a large, flat sprawling suburb built on a seemingly-endless grid system bordered with rolling hills and mountains. Without the obvious barriers, the cities merge into one another with barely a marker to distinguish you’ve entered into a new zip code.

But why is one town so well taken care of, while another just a few miles away without any geographic barriers, has become a dumping ground for litter, graffiti and over-grown lawns?

Due to the lack of physical barriers, cities seem to define themselves through subtle cosemetic differences: graffiti and litter,or statues, pergolas, and renovated shopping centers built to attract consumers willing to spend. Since I’m not a city counsel member, I can only assume a city’s budget and income are dependent on property tax, and the concept that the community will continue to generate income within its own city.

A few things I’ve noticed that may be directly related to the differences between these two towns (I’ll call them town A and town B) are:

Town A:

  • A small, well-maintained business center reminiscent of the 1950’s. Though many stores have closed due to the recession, the landlords haven’t allowed strip clubs or Triple-X stores to open in their place. The town recently built a statue and seating area at the beginning of the 4-block district under a giant Deodar Oak to show their dedication to their small, yet clean business area. One can tell the residents pride themselves on these four blocks – very rarely do you see graffiti.
  • Well maintained lawns. During the real estate boom, this area increased in price by a near 4-fold. Even though this area has been hit hard by the drop in prices, there aren’t very many homes for sale or overgrown lawns. Either people have lived in these homes a long time, or the people able to afford these homes are doing okay financially. I assume this area is financially stable.
  • Renovated shopping center. Over the past few years, the city took a very old, vacant shopping center and completely renovated it making it the center shopping district complete with grocery store, home store, and plenty of fast-food restaurants. (The high school kids love it.)
  • A renowned high school. It’s funny, I graduated from this very same high school many, many years ago. However, it has since turned into a well-respected charter school that is the envy of all who can’t get their kids into it.
  • Movies filmed: E.T. was filmed all over Town A from the trees you see in the photo above to the homes being built in the surrounding hills in the late 1970’s early 1980’s. Fast Times at Ridgemont High car scenes were filmed in Town A’s business district.

Town B:

  • A run-down business district. Back in the 1950’s, the area near my house was one of the first bustling business districts of the valley. Unfortunately, time has not been very good to this center. Riddled with graffiti, burned out buildings, and corner payday loan offices, the business district lacks a cohesive purpose.
  • Over-grown lawns and vacant homes. During the bubble, prices in my area peaked over $500,000. I feel terrible for the people who purchased homes at these prices considering the area really isn’t deserving of those prices. I’m beginning to think they feel bad for themselves as well, as many have walked away from their homes.
  • Corner Mini-Marts. Sprinkled at almost every busy intersection is a mini-mart. Great for a quick soda. Not so good for a community. How many liquor stores does one city need?
  • Low-income apartment buildings for blocks on end. People from every economic level need a place to live. Unfortunately landlords often associate low income with low maintenance; uncared for properties quickly become the target for graffiti, broken windows, and littered lawns only further depressing an already depressed area.
  • Movies Filmed: Boogie Nights was filmed on a busy street in Town B. The television show My Name is Earl was filmed extensively around my neighborhood as well. (Note the glaring difference?!)

What are the solutions for town B? Obviously, the economy picking up steam would help; fewer people leaving the area would fill the vacant homes. Home owners tending to their lawns and cleaning up the graffiti would also be a positive movement. I’ve found that if graffiti is painted over immediately in an area, the tagger usually moves on to another area that doesn’t seem to care as much.

Perhaps I need to make it a point of walking up and down my alley painting over graffiti-covered walls. Maybe I need to begin picking up litter within a 1-mile block range; my initiative alone could cause a much larger change by encouraging my neighbors to do the same. This may be my Labor Day Weekend goal.

What changes have you seen in your town? What is the solution? Is there anything you could do to help?

It’s My 1-Year Anniversary!

August 4th, 2010 Little House 23 comments
Happy Birthday, Little House!

Happy Birthday, Little House!

It’s hard to believe that my one-year anniversary of beginning this blog is already here. When I started this blog, my goals were listed in my 3-step plan:

  1. Pay down my debt
  2. Improve my credit score
  3. Save for a down payment for a house



I really didn’t have a “blog” goal, per say. By starting this blog, I felt it would keep me more focused on my 3-steps if people were watching. If I had a blog goal forming in the back of my mind,  that goal was to give it a year and try and build a small readership. Thankfully, I’ve done just that with the help of a blogging network, the Yakezie (Yakezie.com coming August 16th!). I’ve also become a staff writer for WiseBread.com, a terrific opportunity for me to expand my readership! As for my initial 3-step progress:

  1. Pay down my debtStatus: On going. My credit cards are paid in full and I’m getting closer to paying off my crummy line of credit. I’m not too concerned about my student loan or auto loan, but those two are next on my list to conquer.
  2. Improve my credit score - Status: On target! I’ve managed to increase it to above 700. (I haven’t checked it in a couple of months, but last I checked is was at 728.)
  3. Save for a down payment for a houseStatus: Missed the mark. I’ve actually put off this step off in order to fulfill step 1. I also need to reassess this goal since I need to get serious about saving for retirement. Perhaps this step needs to be a retirement goal, or I need to add a 4th step. Though a 4-step plan just doesn’t have the same ring to it!

Over the next year I’ll continue working on my goals, and possibly add a 4th one: Save for retirement. I can’t really formulate a plan as to where this blog will lead, but since I still enjoy blogging I’m not going anywhere anytime soon.

Now a quick recap of some of my initial posts for a trip down memory lane:

  • An Easy Plan- Details step-1; Looking back, I’m definitely on target with this goal as well.
  • I like Pie Charts – I also like pie; apple, pumpkin, cherry. Must have whipped cream topping…..
  • Living Vicariously Through Others – I was being a bit snarky, especially considering I don’t own a house yet.

Have you made progress on your goals? Do you reevaluate your goals throughout the year?

Five Ways to Save Money on Your Mortgage

August 2nd, 2010 Little House 7 comments

This is a guest post from Lender411 who allows consumers to compare today’s mortgage rates in their area instantly and for free online, consumers are also matched with 4 local lenders who can take care of their specific mortgage needs and compete for their business. 

Money flows in a lot of different directions when you buy a house.  There’s the down payment, the mortgage interest, the closing fees, and numerous other costs.  But there are ways to save money in the midst of the chaos.

Compare your options.  Don’t pick a loan package until you’ve thoroughly researched at least five or six different offers.  Check out rates, fees, and terms.  Get a Good Faith Estimate (GFE) from any lender you are seriously considering.  A GFE itemizes every cost associated with the mortgage so you can see exactly how much the deal will cost.  Lenders are required by law to provide this document to you if you request it.  Don’t be afraid to negotiate, either.  It’s not hard to find the best mortgage rates if you’re willing to take some time and do some research.

Get a shorter mortgage.  The shorter your mortgage term, the less money you’ll pay in the long run.  You can save literally hundreds of thousands of dollars, depending on your overall loan amount, by going with a 15-year mortgage instead of a 30-year mortgage.  This has been financially proven over and over again.  If you can afford to make slightly higher monthly payments, get the mortgage with the shortest term possible.

Assume an existing mortgage.  If the seller of the home has not paid off the current mortgage, you might be able to simply take over the existing mortgage.  If the mortgage is transferrable and the seller agrees, you could end up with a significantly lower interest rate. Of course, you need to guarantee that the interest rate on the existing mortgage is lower than the interest rate you could get on a new mortgage, and you’ll still have to pay the difference between the home value and the current mortgage balance, but you may be able to save a substantial amount of money in lower interest over the years and you may not have to pay any closing costs at all.

Skip the mortgage insurance.  If you’re a risky borrower, some lenders may require you to pay for mortgage insurance before the loan closes.  Once you’ve taken out the mortgage and you’ve made a few payments, however, your lender will likely allow you to drop the insurance.  This can save you a great deal of money.

Pay off your mortgage early.  You’ve heard this one before.  If you can scrape enough money together, make extra payments on your mortgage as often as possible.  Tell your bank to apply these extra payments directly to the principal of the loan.  In effect, this shortens the term of your mortgage, which will lower the amount of interest you’ll have to pay over the course of the loan, as mentioned above.  Make sure your mortgage won’t penalize you for early repayment, however.  This is common.  Try to arrange a deal that allows for this.  It’s staggering how much you can save.

Open Floor Plans with Blu Homes

July 30th, 2010 Little House 8 comments

Small house plans, little house plans, anything to do with residential architecture seems to resonate with me. Perhaps that’s why I named my blog “Little House in the Valley.” However, recently our little rental house in the valley has been the bane of my existence. How’s that? I run into door ways while turning a corner, I trip over  the vacuum that someone’s left in the hallway, I have to leap over hall fans that are placed in our narrow hallways to generate some air flow; all of a sudden our little rental house seems just too little.

But I’m not going to let a poorly designed, 1950’s ranch style house deter me from my dream of a little-not-so-mcmansion kind of house. There are a plethora of options out there, especially if you’re a DIY type of person. I’ve found plenty of prefab designs to drool over, yet one has recently struck a chord with my little house dream: Blu Homes. Not only do their prefab homes start at a reasonable price, they are environmentally friendly, and have open floor plans. Their four initial designs range in size from 408 sq. ft. to over 1,500 sq. ft. (still somewhat small compared to modern-day homes.) The basic floor plan that all four designs include is an open design incorporating the living/dining/kitchen area. No need for walls separating out each room making it compartmentalized, Blu Homes opens up the “living” area for a more natural flow of traffic. A few reasons why an open floor plan appeals to me:

  • Increased air flow. This is important considering I own pets and my husband is a smoker. The dust, smoke, and pet smell is easily trapped in smaller rooms, but diluted in larger areas (not so sure this is any safer, but it’s less smelly!)
  • Furniture options are innumerable. Instead of worrying about wall placement, or too much wall space, furniture can be moved to the center of the living space giving each area it’s own function, while at the same time, keeping foot-traffic flowing.
  • No more running into doorways or tripping through narrow halls. The days of the long, narrow hall are disappearing in modern home plans. Yet, they still do exist. That wasted space isn’t needed in a living area, there’s no need to separate the living room from the dining room or kitchen. An open floor plan makes better use of available space without clouding it up with hallways.

 

Blu Homes Element two-bedroom floor plan

Blu Homes Element two-bedroom floor plan

Blu Homes smaller plan, the  two-bedroom Element, is one of my favorite plans. The only thing I’d add would be a kitchen bar or island for seating 2-4 people, an option available in two of their larger plans. The open floor plan in the living area allows endless possibilities for furniture arrangement and foot-traffic. No more running into doorways!

Does your home have an open floor plan? Are there drawbacks to an open floor plan?

Eco-Cottages and Sheds

June 7th, 2010 Little House 5 comments
Eco-Cottage

Eco-Cottage

Though I’ve made a decision to continue renting for a while, I continue to research all of my future home options. To back track a bit, a couple reasons purchasing a home has been put on hold: 1.) I’m not sure where I want to live. After camping around the town of Ojai last weekend and bicycling around the small town, my husband and I fell in love with the area all over again. But we’re just not ready to take the plunge and live in a city of under 10,000 people. 2.) Our down payment savings fund is a bit down. We haven’t been able to save as much as we had hoped for a down payment at this point in time. Though I’m not discouraged, we are still looking at home ownership as our next big financial goal. I still need to pay off my crummy line of credit before we make this move, however and this gives me time to do so. 3.) We’d really like to purchase a home in a decent neighborhood or build our own eco-friendly one. The  homes in our current neighborhood are within our price range or a little higher, but we really don’t like the area and don’t want to commit to living here another 5-10 years. Hence, renting a while longer may give us the opportunity to hunt down a nicer neighborhood or move out of the area all together.

So, here are just a few more eco-friendly, small kit-home plans for your (and my) enjoyment:

  • Modern-Shed: A while back I looked into the possibility of living in a Tuff-Shed as a means to purchasing land and living off it inexpensively until we could build our dream home. Modern-Shed could be just another alternative to our plan (or the entire plan itself!). What’s even more exciting, their located in Los Angeles. Their models range from small office sized containers to full living quarters that are just under 650 sq. ft. Pricing is quite reasonable starting at $11,200 up to $81,000 for the larger model.
  • Eco-Cottages: Most of the content on their site tout these homes as great second homes or vacation homes. However, I don’t see why they couldn’t function as a full time residence, except for the smaller square feet which many people would find too cramped. I especially like their slide show showing illustrations of all their models. Too bad they aren’t actual cottage photos. Price ranges from $37,000 to $69,000.

Perhaps putting off my dream of owning my own little house in the valley isn’t such a bad idea. Every week I find another amazing prefab, ecofriendly house that I love!

Worldly Rent to Own Quick Statistics:

  • United States: US ownership is just under 65% versus renting at 21% (per BestPlaces.net). I’m going to assume the missing percent are kids living with parents? Or alternative living arrangements like living in an RV, a house boat, or being an urban nomad.
  • Los Angeles: home ownership is at 37% where as renting is at 59% (not surprising!)
  • Based on NationMaster statistics, many Europeans own their homes versus rent averaging out to about 63%. (I was surprised by this one. I was under the impression many people rented.)

Mini-Yakezie rolled into one:

  • 20’s Money with Black Swans Circling. Not the most uplifting post, but perhaps on target. I’m a “glass is half full” type of gal, so I look at things with a silver lining. The euro tanking means planning a trip to Europe may be on the horizon, the Gulf oil spill may mean our government may finally start moving our economy away from oil (or we could begin doing this ourselves, ride your bike!). You get my point!
  • Deliver Away Debt with Focus on the Debt Snowball. A great strategy to pay off debt. Remember my crummy line of credit? I’m using this theory to get the stinker paid off!
  • Out of Debt with Why My Credit Score is Important to Me. My score is important to me, so I understand Mrs. Accountability and her quest for a better score, whether it’s for refinancing purposes or first-time buyer purposes, the lower the APR the more you save on finance charges!