Cash for Clunkers for Appliances

Cash In on Appliance Savings

Don’t miss out on your chance to cash in on appliance savings.  The program is expected to begin in California in early spring.  It’s worth keeping an eye on the California Energy Commission’s website for up to the minute announcement.

If you are thinking about upgrading appliances, you might want to wait until the Cash for Clunkers for Appliances money is released.  It’s important not to wait for too long though because once the $35.2 million allotment is gone, it’s over.

Eligible Appliances

Three residential appliance categories will be eligible to receive rebates: clothes washers (proposed rebate $100), refrigerators (proposed rebate $75), and room air conditioners (proposed rebate $50).  This can be a great time to save even more than is available with sale prices.

More Incentives

Many California utilities, as well as appliance manufacturers offer additional rebates or incentives.  The Flex Your Power website lists 155 incentives for the “residential sector” just in the 93561 zip code.

More Savings on the Horizon

In addition to the appliance incentives, President Obama has also proposed a “Cash for Caulkers” program.  This would provide up to $12,000 per homeowner.  You can read about the proposal here.  For the tongue-in-cheek approach as only Jon Stewart can deliver it, you can check out the Daily Show’s Most Immature Montage Ever.

Keep watching to take advantage of the chance to save some money.

Wondering What's Happening with Home Sales?

What’s ahead for home prices?
California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments.  However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.
KEEP THIS IN MIND
  • Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in year-to-year comparisons for the first time since August 2007.
  • C.A.R.’s closely watched “2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.
  • Some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.’s economists expect that foreclosures will remain flat this year compared with 2009.  In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels.  By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
  • Government efforts to maintain a low interest rate environment have stabilized the market.  However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.
To read the full original story, please click here:
http://realestate.msn.com/article.aspx?cp-documentid=23168167&GT1=35000

New Year, New Batteries, New Water Filters

New year, new batteries, new water filters.

There are lots of things you can do on New Year’s day.   Consider going for a nature walk, starting (or finishing) a project, park in front of the TV and watch football, etc.  I started a tradition a few years ago that I wanted to share with everyone else.

Do things that are time sensitive. What kind of things?  How about changing water filters and batteries?  How many of these need to be changed depends on your circumstances.  Do you have any or all of these?

  • whole house water filter
  • a reverse osmosis system
  • a filtered water pitcher
  • smoke detectors
  • CO2 detectors
  • others?

How often are changes required? That depends on the item.  Some only require a change once a year, some may need a change monthly, bimonthly or on some other schedule.  For example, most reverse osmosis filters only need to be changed once a year, but the filter in my water pitcher needs to be changed bimonthly.

Smoke detector batteries need to be changed annually. The conventional advice has been to change smoke detector batteries twice a year.  I don’t believe it’s necessary to do it that often.  Modern batteries have a very long shelf life.  In fact, I could never bring my self to schedule it for twice a year, so it never used to get done on a schedule at all.

Startled from sleep by a shrieking smoke detector at 3:00 am is not the best time to deal with maintenance! I didn’t need to learn that lesson too many times before I decided to get it on a schedule.

The easiest schedule to remember is January 1. New year, new batteries, new water filters.  Give it a try.  You may decide to make this your tradition too.  Let me know how it works out for you.

New Improvements for the New Year

Have you thought about improvements for the New Year? It is the time for resolutions and planning what you are going to do differently from last year.  I just realized a few days ago that not only are we entering  a new year, we’re entering a new decade.  That’s like a new year times 10!

However, resolutions are for other people. Some years ago I resolved to stop making resolutions.  January 1 has never seemed to me to be a particularly propitious time to pioneer particular pastimes.  (Sorry, I just couldn’t help myself — the alliteration got away from me.)  Rather than resolutions for personal improvement, I wanted to talk about the potential for home improvement.

Some things should be planned replacements. One item that never seems to be a planned purchase is a hot water heater.  We ignore our hot water heaters right up until the time they cease to function.  I’ve decided not to wait that long this time.

There are warning signs of a water heater about to run cold. That rumbling, grumbling sound is sediment rolling around in the bottom of the tank as the water is heated.  And, it gets worse the closer to death the water heater gets.  What about the length of time it takes the hot water to get to the shower head?  Or, the shortening length of time available for your shower?  It might be time to consider replacing it.

You have choices if you have oil, natural gas or propane available. If your only source of energy is electricity, your choices are significantly more limited.   Water heaters can either be storage tank models or tank-less (aka instantaneous) models.  Operation cost is lowest for natural gas fired tank-less models, but acquisition cost is about the highest.

Consumer Energy Tax Incentives are available from the US Department of Energy. These include HOME ENERGY EFFICIENCY IMPROVEMENT TAX CREDITS that can provide 30% tax credits for certain improvements up to a total of $15oo in credits.  These tax credits are available for certain gas, oil, or propane water heaters.  Remember that credits are a direct dollar-for-dollar reduction of your taxes.  The links on the Energy Star page take you to a Directory of Certified Product Performance where you can verify the certification of water heaters you are considering.  The Energy Star page has step-by-step directions for running the query, but you really only need to remember to choose “yes” for “Tax Credit Eligible”  near the bottom of the page.

After reviewing your options and choosing what seems best your next step is to calculate the total cost to narrow the field and ensure you’re making the best choice.

Compare total costs, not just energy savings or acquisition costs.

  1. Start with the price of each water heater you’re considering, add in any accessories and the cost of installation.  That gives you the acquisition cost.
  2. Calculate the tax credit for a tank-less model with a certification from the Directory of Certified Product Performance.  This does not apply to storage tank models.  Multiply the total acquisition cost including installation by 30%.  Subtract this amount (or $1500, whichever is less from the total acquisition cost.
  3. Next, you have to calculate the energy cost.  The US Department of Energy offers a calculator for this.  (If you’re working with propane, it’s helpful to know that 1 gallon of propane = 0.918 Therms.)
  4. Calculate total life costs for each model.  A standard storage tank water heater has an average life expectancy of 13 years.  Tank-less manufacturers claim twice the life expectancy for those models, but I’m basing my calculations on a 20 year life.  Compare the models based on an equalized cost per year.

Working out the calculations for the two models I’m considering, one a storage tank and the other a tank-less, the difference was greater than I expected.  Every other time I’ve considered a tank-less model, the acquisition cost has been so high that the operational savings could barely offset the difference over the entire life cycle.  Now, with the tax credits available, the difference swings the other way.  For my example, the total life cost of a storage tank model would be about $9150 over a 20 year period, compared to a tank-less model with a total cost of $6250 for the same period.

Armed with all this information, you can truly make an informed choice. Don’t depend on my calculations, evryone’s usage is different.  Take the time to run your own calculations and see what works best for your situation.

Finally, be sure to consult your tax professional for information regarding the application of tax credits.

Let me know how you decided to proceed.  I’d also be interested in hearing about any resolutions you couldn’t resist making.