Money Management

If you’re improving your home, you need to be aware that the changes you are making could impact your property taxes. Read on to learn how to cope. 

One of the big benefits of getting a mortgage loan and buying a home is that you have the opportunity to make the space your own. This means that you can make additions, improvements, or upgrades to your property if you want — and can afford to pay for these changes out of your bank account or get a loan to make the modifications.

When you budget for a renovation, you’re most likely focused on the immediate costs of getting the job done (and how they stack up alongside your mortgage payment and other bills). But you need to be aware that you could actually be increasing your housing costs for years to come. Here’s why.

Home improvements could increase your home’s value — and your property taxes

When you improve your home, you will typically need to get permits to do the work in order to be able to move forward legally. If you don’t, you could face fines and penalties, and the county could order you to stop the renovations or to undo the work that has been done.

When you apply for a permit, this alerts the county or township that you are upgrading your home. And that could sometimes trigger a reassessment of your property taxes. Since your taxes are based on the assessed value of your home, improving your home and making it worth more could make your bill go up.

This is especially true for upgrades that can have a noticeable impact on your home’s value, such as:

Putting an addition on your home that adds more living space.Making permanent improvements to the property, such as installing an in-ground swimming poolMaking structural changes that add bedrooms or bathrooms to your existing space.Adding an outdoor deck or outdoor living spaceConverting spaces to get more square footage, such as enclosing a deck or turning a garage into living spaceFinishing a basementAdding outbuildings, such as a shed or a screened porch

The specific increase to your property taxes will vary depending on just how much the county believes your improvements added to your house’s value — as well as on what your tax rates are. The more substantial the improvement to your property, the more likely it is that the upgrade could lead to a big tax bill in the end.

Don’t forget to take this ongoing cost into account

If you want to improve your home, you shouldn’t necessarily let the risk of increased property taxes deter you from doing so. After all, you want to be able to live in and enjoy your space. But you do need to keep in mind that you could face this added cost and be sure there is room in your budget for it — especially if you are also borrowing to do the upgrade and will have that monthly bill to contend with as well.

Remember, too, that when your property goes up in value, that increase in taxes can be a permanent one — so you will be faced with higher taxes than you would otherwise have paid for the rest of the time you live in your home. Just make sure you can afford that — and that the upgrade improves your life enough to be worth this added bill — before you move forward with making improvements to your home.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You don’t have to pay thousands of dollars to fly in business class. Find out which apps and tools to use to get business class flight deal alerts. 

You’ll pay anywhere from $0 to $199 annually to get business class flight deal alerts.

When it comes to comfort, flying in an economy class seat isn’t an ideal situation — especially on long-haul international flights. But it can be expensive to pay full price for a first class or business class ticket. If you have dreams of flying business class without draining your bank account, you may want to consider using an app or tool to find the best business class deals. Here’s an overview of a few business class deal alert services that can help you save money.

Thrifty Traveler

Thrifty Traveler is a flight deal alert subscription I have experience using. After becoming a paid subscriber, you’ll be sent cheap flight alerts by email. A subscription costs $89.99 per year.

Premium members get access to the following alerts:

Domestic economy class discount faresInternational economy class discount faresInternational and domestic business class and first class dealsAward flight dealsMistake fares

I’ve been pleased with this service and plan to continue resubscribing once my annual membership is up. I typically book economy class flight deals, but I recently booked an error- fare business class flight and saved over 50% on the typical ticket price. Error fares or mistake fares are rare, but travelers can benefit when airlines make pricing mistakes like this.

Going

Going is another flight deal subscription service that can save you money on airfare costs. Members are sent deal alerts by email. Going offers three memberships: Limited, Premium, and Elite. If you hope to score discounted business class tickets, you’ll want to become an Elite member. A membership costs $199 yearly.

Here’s what deal alerts are included with an Elite subscription:

International and domestic economy and premium economy class dealsInternational and domestic business class and first class dealsError fare dealsPoints and miles deals

Dollar Flight Club

Dollar Flight Club is another service that sends airfare deal alerts to travelers. The company offers two paid subscriptions: Premium and Premium Plus. For those who want to book cheap business class flights, the Premium Plus membership can help. You’ll pay $168 annually to become a Premium Plus member. Here’s what the subscription includes:

Domestic economy and premium economy class dealsInternational economy and premium economy dealsInternational and domestic business class dealsMistake fares

Google Flights

If you want to avoid paying for a flight deal service, Google Flights is a free airfare search and price comparison app that can help you keep more cash in the bank.

You can search for business class flights using this tool and set up price tracking. When flight prices drop significantly for your preferred dates, Google will send you an email alert so you don’t miss a good deal. This free tool could help you experience business class travel without going broke.

You can fly business class while sticking to your budget

The typical business class flight is not cheap, but that doesn’t mean you can’t find affordable business class tickets. Using some of the services above, you can score cheaper business class tickets to fly with added comfort without racking up credit card debt. The only problem is once you experience business class, you won’t want to fly economy again.

When booking travel expenses, like airfare, consider paying with a travel credit card. With one of the best travel rewards credit cards in your wallet, you can earn valuable rewards when you travel and access benefits that can improve your vacation experience. For additional ways to save money, check out our personal finance resources.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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Trader Joe’s has a devoted fan base due in large part to its unique product offerings. Learn which ones were hits (and misses) for one writer. 

I love my current city, but if I could change one thing about it, it would be to add a Trader Joe’s location. Unfortunately, when I want to visit a Trader Joe’s store, I have to drive 50 miles one way (or 90 miles the other way). This means I can’t just visit on a whim — I usually plan a trip ahead of time and bring along my cooler so I can get perishable items home safely.

This means it’s all the more crucial that I get my money’s worth out of purchases, since it could be a few months before I have the time to stop by again. To make the hit to my checking account really count, I’ve got a list of items I regard as TJ’s best and buy regularly — as well as a few I wouldn’t purchase again.

1. Best: Sublime Ice Cream Sandwiches

Trader Joe’s offerings from the freezer case are why I bring my big cooler on every trip I make. The Sublime Ice Cream Sandwiches in particular are an absolute gem. Resist the urge to look at the nutrition facts, and note that they come just four to a box (and for only $4.99!), so you can absolutely make room in your freezer and stomach for one of these beauties on occasion.

2. Best: Unexpected Cheddar Chicken Sausage

Sausage is a staple at my house because it freezes beautifully, thaws easily, and can be turned into a host of easy dinners. Trader Joe’s Unexpected Cheddar is a common sight in the refrigerated section, and the retailer has also been putting it into other foods, including this sausage. It can be yours for $4.49 and is already cooked, so all you have to do is reheat. And it tastes really, really good.

3. Best: Jumbo Pitted Greek Kalamata Olives

Mediterranean food is forever and always my favorite cuisine, and Trader Joe’s has my back with its variety of dishes and ingredients to make the perfect feast. These kalamata olives are one product I buy every time I set foot in the store, because I can keep extra jars in my pantry and crack them open as needed. Also, they’re cheaper at TJ’s than at my local grocery store, at just $2.99 for 12 ounces. I never mind using my favorite grocery rewards credit card to buy many jars of olives at once.

1. Worst: Cheesy Seasoning Blend

Unfortunately, not all Trader Joe’s products are winners. I’m a big fan of the retailer’s assorted spice concoctions, but I was disappointed by its Cheesy Seasoning Blend. This mix of powdered cheese, garlic powder, and other spices was on the bland side, and it clumped pretty much as soon as I opened the jar. I’ve got a fair amount of experience with cheese powder, and this is a known problem with using it — if any moisture gets in, clump city. Perhaps this should be repackaged with a grinder attachment so it’s easy to overcome clumps?

2. Worst: Argentinian Red Shrimp with Ginger Garlic Butter

This meal was a bummer from start to finish. The hard plastic packaging made it difficult to tell whether the shrimp were thawed enough to cook, and it was also a pain to get open. The garlic butter’s flavor and texture left a lot to be desired, and I’m sad to report that I put half of the shrimp in the fridge for another meal, and then didn’t end up eating them because I was so unenthused at the prospect (and I really hate wasting food). The $7.99 hit to my personal finances made this even more disappointing.

3. Worst: Southwest Style Chicken Quesadillas

These chicken quesadillas weren’t awful, but $4.49 felt like a lot of money to pay for two relatively small frozen quesadillas. I could have made this dish at home (and used more spices, more chicken, and more cheese) for less money. Lesson learned — I try not to buy ready-made versions of dishes that aren’t hard to just whip up myself.

If you’re a regular customer of any retailer, it’ll save you money in the end if you keep track of which products are hits and which are misses. But don’t pass up the opportunity to find new foods to add to your life. One of the best things about shopping at Trader Joe’s in particular is getting to try its new products in addition to rebuying old favorites. Even disliking some of what I’ve bought in the past isn’t enough to deter me from giving interesting new offerings as they arrive.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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High mortgage rates and low housing inventory have pushed home prices in many U.S. cities higher than a year ago. Find out which cities are most impacted. 

Unfortunately, for many Americans, it’s getting harder to become a homeowner. One reason is that mortgage rates have reached record highs, which drives up the total cost of a monthly mortgage payment. But home prices are also high, making it more difficult for hopeful buyers to buy a home at an affordable price. And if you live in a high-cost-of-living city, you face even more barriers due to rising home listing prices.

Housing prices have increased since September 2022

In its September 2023 Housing Market Report, Realtor.com examined recent housing data. Overall, housing inventory remains low, but year-over-year data shows that housing prices have continued to rise throughout the last year. Nationwide, prices increased 0.4% annually.

But in some areas of the country, median home prices are now much higher than at the same time the previous year. The following U.S. cities have seen significant home prices increase since September 2022.

1. Los Angeles, California

In Los Angeles, median listing prices have increased year over year by more than 23%. If you have dreams of owning a home in the Los Angeles metro area, which includes Los Angeles, Long Beach, and Anaheim, you should expect to pay up. As of September 2023, the median home price was $1,175,000. Even if you make a 20% down payment, you can expect to walk away with an expensive mortgage payment when buying a home in this costly area.

2. San Diego, California

San Diego is another city where home prices have increased. In the San Diego metro area, which includes San Diego, Chula Vista, and Carlsbad, the median home price was $1,050,000 in September 2023. That’s an 18.2% increase compared to median home prices in September 2022.

This isn’t surprising news, considering the average house price in California was $760,526 as of quarter three of 2023. This figure comes from The Ascent’s research report on the average house price by state in 2023.

3. Richmond, Virginia

Richmond is another U.S. city that has seen a significant increase in home listing prices in the last year. If you plan to move here, you’ll need a sizable housing budget. The median home price as of September 2023 was $439,000 — which means the year-over-year increase was 15%. At that price, most buyers would likely need to finance their purchase with a mortgage.

4. Cincinnati, Ohio

Cincinnati is another metro seeing higher median home prices than a year ago. Realtor.com notes that the median home price in September was $373,000. While that may not seem expensive compared to some cities, it’s a 14.6% increase compared to September 2022.

If you’ve been thinking of buying in the Cincinnati area, you may be able to find cheaper housing elsewhere in the state. According to The Ascent research, the average home price in Ohio was $220,031 as of quarter three of 2023.

5. Boston, Massachusetts

The Boston metro area, which includes Boston, Cambridge, and Newton, has also seen noticeable home pricing increases in the last year. In September 2023, the median listing price was $849,000 — a 14.1% increase compared to last September. Before attempting to buy a house in Boston, you’ll want to have a lot of money in the bank.

Don’t give up on your homeownership goals

If you’re feeling frustrated about the current state of the U.S. housing market, you’re not alone. But don’t give up on personal finance goals that you’ve set for yourself, like buying a home.

While you can’t control home prices, you can keep saving until you’re ready to buy. A larger down payment could help to make your monthly mortgage payments more affordable despite high interest rates, since you’d need to finance less of the home’s cost.

Another option is to consider buying a home in one of the most affordable cities with low costs of living. If you’re ready to start the home-buying process, check out our list of the best mortgage lenders.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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