| .
|
Last week's news that new- home construction may be cooling could mean materials for home-improvement or remodeling projects might not cost quite as much this year.
That's because last year's prices on construction materials, from lumber and brick to pipe and concrete, jumped so high that even minor decreases might seem like a big price break for those who put off projects last year.
Sure doesn't seem like it, though. Estimates for lumber to build a deck told me I might have enough to build a deck chair. Maybe.
But industry experts say lower demand for new houses, plus having a good supply of the various materials available, should soften prices a tad.
"The big inflation hits occurred in '04. That's not going to happen in '05," said Tim Grogan, senior economics editor for the trade magazine Engineering News Record. "You don't see back-to-back spikes like that."
You might find exceptions with drywall, PVC and copper pipe and insulation, which have seen strong increases, he said.
What does all this mean to you?
More than ever, take the time to shop and compare. Don't just head to the local home-improvement store and take your lumps.
Give yourself options by getting estimates from the Cadillac of materials to the Mini Cooper. Understand, though, that cheaper isn't always better if it doesn't last.
Consider options on how to pay for the job, from cash to a home-equity loan or line of credit. Each option will affect the overall cost of the job, especially if interest rates climb as many predict.
More lessons:
Readers continued to share lessons they learned about money that have stuck with them. Paula Hansinger, 58, of Parma, said she never had a credit card when she was married and in her early 30s. But the marriage failed and her ex was declared indigent and never paid child support.
So she decided she should have credit cards. "My mother taught me when I got my cards that I should pay off the balance as soon as it came and to never pay interest because it was like setting fire to your money," said Hansinger, who carries five or six credit cards.
"So all these years, I've never paid a finance charge."
And Jeanne Morton, who runs a training center for the Cleveland Housing Network, a nonprofit that provides free money-management classes, asked her students what lessons they've learned. Here's what they said:
Stephen Best of Cleveland learned to not be greedy from his mom, to spend wisely from his dad and to enjoy life - because you only live once - from himself.
Angelia Shelton of Shaker Heights: "The most valuable lesson I've learned is save 10 percent of each paycheck. [Author/infomercial host] Suze Orman taught me that. Her show is the best!"
Albert Douglas of Cleveland said he learned from his first boss how to save, buy property and put money in the bank. Before that he was young and careless with money, blowing it on clothes.
For Joi McNairy of Cleveland, it was the checkbook lesson. She didn't balance her checkbook and burned money on countless overdrafts. So she closed the account until she became more responsible.
Lennetta Barker of Cleveland learned from her dad that if you can't pay cash for something, then you don't need it. "You learn how to be a good steward with your money when you don't have any. You can make a little go a long way."
Online help:
Knowledge is power, especially in the college financing game. Money Management International, a consumer credit counseling service, suggests these Web sites: www.finaid.org (military aid, loans, scholarships, grants, applications and calculators); www.fastweb.com (information on more than 600,000 scholarships); www.collegeboard.com (college admissions, guidance and financial aid); and www.savingforcollege.com (a guide to state-run 529 college saving and investing plans).
Lubinger is a Plain Dealer features reporter. Contact him at 216-999-5531, blubinger@plaind.com or Simple Solutions, The Plain Dealer, 1801 Superior Ave., Cleveland, Ohio 44114. Please include your name, phone number and city. Your name will not be used without your permission.
© 2005 The Plain Dealer. Used with permission
2999 Payne Avenue, Suite 306
Cleveland Ohio 44114
2 1 6 . 7 7 4 . 2 4 2 4
w w w .h o m e w a r d h o m e s . c o m
.
|
.
|
