Will a Tax Credit Extension Help the US Housing Market?

In the United States, the GDP recorded 3.5% growth in the third quarter – for the first time in twelve months. Since the end of last year the property market is also showing massive improvements.

Are our counterparts starting to come out of the recession? There is a surplus of 7 months worth of stock on the US property market at this moment in time. There has been great inroads into the excess stock on realtors book's considering this figure was just about double at the start of the year. Eyes of many real estate agents (but also possible buyers) are now on one thing – the first time home-buyers’ tax credit.

With $8,000 in tax credits, or even cash back in some instances, these available tax credits have gone a long way in helping boost the housing market. But as the expiry deadline for this special offer comes nearer, market watchers are becoming nervous. When the tax credits are no longer available what is going to happen to the housing market?

All is not lost as an extension bill for the tax credits is being written which will prolong the deadline for a further year until 2010. Senate has now cleared the path for the law, which may make it to Obama this week or next. With a new cut off date of April 30, and an rise to $225,000 on the couples income threshold, this is a very enticing bill. And that’s not all – a new $6,500 tax credit for move-up homeowners was attached to the bill.

Passing this bill may stoke our southern neighbour’s property market enough to get through the winter, but, the question remains: how will the US federal budget sustain this hit?

Image by Crazyemt.

Thinking about Renting out a Fully Furnished Apartment? Think Twice, It Is Not That Easy

Are you an owner of a small flat or a condo? It may be a perfect idea to rent it out as a fully furnished place. People who usually rent such places mostly need a home ready to be moved into, without the need to purchase anything - depending on their lifestyle. But before you will get any extra cash from renting your fully furnished property, first you will have to make a lot of decisions and think about many details.

How much will it cost you?

Preparing your place and setting everything up will certainly cost you something, and finding out how much is the first step. Examine the listings of other fully furnished properties available in your area. Try to find some properties that are close to yours - in size, location and furnishing. Once you have a pretty good idea of the rent that is commonly charged for a fully furnished place such as yours, list everything that you would have to purchase in order to fall into the category of 'fully furnished'. Not only all furniture, but also utilities such as gas, electricity, water, phone, cable, wireless Internet or security services, and all kitchen ware, plus towels, bed linen and cleaning supplies - all of this is expected from you to take care of nowadays, if you are renting out your flat as fully furnished.

The next step is to make up your mind if you can afford to fully furnish your apartment to the extent described above. Make a list of all the things you will have to purchase so that your place is fully furnished. Also think about the fact that there may be multiple tenants over a number of years, with times of unoccupation between them. If you decide that making your flat fully furnished would be too difficult for you now, there is a possibility to list it as "part-furnished". That would mean a bit less attractive possibility than fully furnished, but at the same time less hassle and an easier life for you.

List all the equipment, set up a deposit

In case you have lived in the flat for some time, start with removing all your personal private things, such as photographs. The next thing to do is to prepare an inventory of all items in the flat. You should go through the inventory together with the tenant, walking through the flat and seeing everything provided by you together. That should include counting individual items such as the amount of spoons, forks, knives towels or linen. As part of good practice, there should also be your rental agent present when doing the inventory, and then when all sides agree on the list, they sign it. When the contract expires, it is time to go through the flat with the list again, noting down all facilities. Anything that has been damaged or lost will have to be replaced and paid for from the deposit which was agreed at the start of the contract.

Now with the winter Olympic games coming soon, the opportunity of renting out a fully furnished place seems like a gold mine for more and more people in Vancouver. But if you don't already own a suitable unit and would have to start from scratch, the whole idea might turn into a nightmare. The return on investment for rental properties should be planned over the long term and not just seen as a 'get-rich-quick' plan.

Are You Considering a Solid Investment? Why Don't You Think about Bricks and Mortar?

As an answer to the most recent recession in the housing market in Canada, REMAX Canada released a report analyzing the local Canadian housing markets over the last 30 years. Over this period of time the report concludes that investment in bricks and mortar has always been one of the principal and securest option.

The market for residential housing throughout Canada still shocked economists and housing analysts according to the report. There have been three great slumps in the Canadian housing market over the last 30 years, two of them were in the 1980's and the most recent in 2008. In comparison to the 1981 and 1989 market downturns the downturn in 2008 was the quickest with sales and prices quickly flourishing again. Buyers have lost their market, which has now pivoted into leveraged or even a sellers' market.

Long term soundness of real estate investments is based on various factors in Canadians established belief in houses and condos. Real estate exhibits fiscal and material "fortresses" for most Canadian investors. Over the last three decades there has been a significant rise in the purchase of houses of over 6%. With a 12% rise, Calgary has seen an even larger increase in property purchase.

Regardless of the above communicated downturns and smaller variations, real estate remained a very well appreciating investment, with Vancouver, Victoria and Toronto as rulers in terms of price appreciation. This years greatest increase in the real estate market comes from the Greater Vancouver area with a massive 14% increase. The major buyers are depicted by first-entry purchasers, however the over $1 million segment is also being galvanized by trade-up buyers.

Vancouver is classified the greatest performing market in the whole of Canada for housing price increases.

In Vancouver real estate prices have grown nearly 500% in comparison to just over 350% for the rest of Canada since 1980. There has been a 10% increase in house ownership since 1981. Just compare this with inflation for the corresponding period. Over the same period there was a 156.6% increase in inflation looking at the Bank of Canada calculator. In other words: investing $100,000 into real estate 30 years ago would bring you almost $320,000 net return.

This information is not news to nearly all Canadians. Real estate rather than stock investment is the favorite choice of 77% of Canadians according to the September survey administered by The Angus Reid Omnibus.

Moving: Filling up All the Boxes

Whereas last time we analyzed the hidden cost of moving, in today's article we are going to concentrate on the best way to pack before the actual move. Packing all the stuff before moving is something many people are afraid of. To be successful with this activity, you will need plenty of time, boxes, various wrapping material and a system in place. Without a sufficient plan, the move is bound to become an even worse nightmare than it necessarily is. Time Beginning the night before the actual move, even if you're only moving from a one bedroom apartment, isn't the best approach. In an ideal situation you'd want to be done one day before the day of moving so that you have enough time to pack all the forgotten things people always find in the last minute, food from the fridge and all the things you are using on a daily basis.

Boxes and packing material

Even though it's a useful idea to use all the suitcases and bags you already have at hand, that will hardly be enough. The most necessary packing material you will need are boxes, bubble wrap and newspaper (for securing kitchen ware). Additional supplies usually include permanent markers, packing tapes, polyfoam wraps, polystyrene beads, plastic bags and other various accessories.

With boxes, you may either buy them (they are usually between $1.50 to $5 per box) or you could ask at nearby stores for empty boxes, which could significantly decrease the cost of moving, if you manage to get enough of them. Also, most moving companies offer you the chance to buy or rent the boxes directly from them. As for the amount - of course that depends on the size of your home, number of rooms, number of family members and their routine of hoarding redundant things accumulated over a number of years. But the consensus is that for a standard 5-bedroom home you will need as much as 100 boxes. If that looks like too many for you, just imagine how many boxes will be necessary to pack all your stuff only from the kitchen and living room! No matter which way you acquire them, make sure you have a rich selection of sizes. Professional moving companies who offer the hiring option, will be happy to come and inspect your home and give you an estimate of the number of boxes necessary.

To find more secret tips, please follow the complete article Packing before moving.

Image: Can in a box by Tabbymom.

Generation X: just about to outbuy baby boomers?

The recent RE/MAX report shows that the present Canadian market with recreational property has been taken over by Generation X, which replaced the previous main buying force formed by the baby boomer generation growing older.

Who are the people in Generation X?

Over the years, social scientists have developed the practice of giving fancy names to the generations of the 20th century. Dating of a particular generation depends on all the different political and cultural features of the time that influenced the upbringing of members of that generation. The baby boom generation, that are people born from mid 40's till late 50's, was the strongest buying force, or at least until only a couple of years ago. But now the majority of these people have retired or are preparing for it.

Now the children of baby boomers (known as Generation X) have grown up and in their 30 - 40's they are in a sufficient financial condition to purchase recreational property at almost any price.
You will see this change especially when we compare the results of the first half of this year with the ones from last year. The trend moving toward recreational property buyers in their 30's was observed by 74 percent of markets in this year's surveys. The recreational properties sold varied from waterfront cottages to resort condos. This compares with only 40 percent in 2008. From January till April 2009, the number of sold recreational properties declined - at least two thirds of all surveyed markets reported such trend. But now, the buyer activity has grown with the beginning of the new cottage season, as we can see from the results of many major centres.

The most important points of the report:

Supply is suitable in most markets, but heated activity in the lower-end has resulted in tight inventory levels for entry-level product in 18 per cent of markets. Older cottage owners, a lot of whom own their properties outright, are selling to younger buyers with families. Some American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market. There are some exceptions of course, but we can say that American purchasers have mostly disappeared. One of the known factors in the marketplace is pent-up demand. For instance some buyers who had intended to purchase recreational properties in the second half of 2008 decided to defer the transaction till the next year. Florida, Arizona, California, Nevada and other warmer parts of USA are the states where older Canadians still continue to demand secondary homes. Generation X buyers are ready to spend their hard-earned money on vacation homes, but at the end of the day, they want to know that they’ve negotiated the best deal possible.

Photo source: thinkpanama

Relocating: The Hidden Cost

Relocating. This operation may get much more expensive than you would originally think, especially in case any problems come up (and sometimes even if they don't). No matter what way of moving you are considering, whether moving on your own or hiring professionals, there are always some expenses included. In this text we will break them down to give you a general idea what to be prepared for. Now you are maybe asking, so what's the problem then? Basically, there are two issues: in case of moving done by people themselves, it is too common to forget about all the additional tools, packaging material, transportation or the value of the time. But all these are related expenses you should count with. Also in case of moving with the help of a professional company, you might come across problems related to wrong company choice, wrong price calculation, or undervaluation of all kinds of additional expenses that are necessary, but weren't included in the company's bill. If you recall the first article of our "moving" series, we have already described the three options how to sort out your moving. They all differ by the level of your own involvement: either the professionals do everything for you, or you can manage all the work yourself - packing, loading, transporting and unloading. Or you may hire a company offering a hybrid service in case you’d like a bit more control over the whole process. Some companies might offer only the transportation; while other companies might offer loading, unloading and transportation of ready-packed things.

What’s involved? When you are beginning to organize your moving, the first step should be that you think about the budget. It will save you lots of trouble later. Generally, the relocation expenses can be broken down into four main categories: the transportation of your stuff, the packing of your stuff, the transportation of you and your family and the cost of starting up in your new home. The actual relocation. The first step should be calculating the main cost of moving your stuff. So will you be moving on your own, or hiring a company? This is the crucial issue you have most likely already decided. If a professional help is the way to go for you (we will bring some more tips on choosing the right company in one of the following articles), first contact them and ask for a written estimate of the price. It should say clearly whether the estimated price is binding or not, that means whether it is the final price, or there might be other fees coming up. Also the tips should be included - generally about $25 per worker.

The work and its cost. Secondly, the cost of the manpower that will do the packing and loading should be estimated - it may be the hired professionals, but also friends or family ready to help (it would be nice from you to at least buy them a dinner!), and also the cost of your time, especially if you need to take some off work. You should also count with the cost of any packaging material (boxes, bubble wrap, tapes etc.) and/or tools (i.e. dollies) you will need.

How much is the transport?. Thirdly, you have to estimate the price of the transport for you and your family - either flights, train or bus ride, or the price of petrol, if you are planning to travel by car. Also accommodation, food and possible entertainment while travelling should be calculated into the total price.

After the relocation: starting fresh There is usually a lot of problems and extra expenses connected to the moving, that people don't think about when they are in the middle of all the boxes. For example, you might have to pay a start-up fee for connecting up utilities such as a cable or telephone. Or think about your most likely empty fridge and freezer and the price of all the groceries to fill them up again. Also think about the price of any items you have left behind and you need to replace them now, such as various household items. Or maybe your new house needs a fresh coat of paint. It is always helpful to think first and jot down the costs of all the necessary items to buy, so that the total sum doesn't shock you after the moving.

As a Vancouver real estate agent, I have always tried to help my clients even with this issue, therefore I would like to share with you some useful tips & tricks: 1) Always compare how much it would cost you to move a certain item against how much the item costs when bought new. The result of this comparison might shock you. 2) You might have a chance to get a moving package from your new employer, if you are moving because of a new job. 3) Keep all the receipts connected to moving since you might be eligible for a tax deduction.

Photo: by Linda Yvonne

Moving: With Professional vs. Friends and Family

Moving your stuff from one place to another has never been simple, but as an experienced Vancouver realtor, I have gained valuable knowledge on how to deal with this complicate issue. However, just as in any similar case, experienced people can help you with some advice that will make this task easier. In order to help you, we will publish a series of texts about all the various aspects of a relocation: how much it costs, how the insurance works, how to choose the right company, and much more.

The first article will help you to decide whether to hire a professional company or do it yourself. Among the most important issues are the amount of money, time and labor you have available from your own resources.

Definitely the best thing to start with before deciding which approach you choose, is to write down and estimate the amount of things you will be moving and then asking yourself the following questions:

- How long will it take you to pack everything?
- Can you manage the furniture?
- Have you any special, expensive or heavy items that need special handling, such as pianos or the collection of art?
- Do you have any friends or family members living nearby, who could come and help you during the weekend?
- For the moving, you will need a large car - do you trust yourself driving something like that?
- Will you manage to accomplish your move over the weekend or will you have to take some days off work?

First you need to ask yourself all these questions, and depending on the results you have got, you will be able to pick the best way of moving.

In general, there are three options:

1. Full-service movers

There are a lot of companies specializing in helping clients to move, including packing the things, loading onto the vehicle, driving it to the new place, unloading and unpacking it. Well, however costly this may be, it's the best method for people who have nobody to help them, or who just don't have enough time to do the job themselves. All the packaging material, straps and all the necessary equipment is provided as a part of the service. All that is left to you is to let them do the job.

2. Self-service movers

If you decide to go for this method, you will be expected to be more involved too. The level of service provided may be not the same in each company. On one side of the scale, we have some companies that only provide a car with a driver, and the rest of the work (packing, loading & unloading etc.) is up to you to do or organize. On the other hand, the service may include help with loading & unloading, which you will appreciate especially in regard to the heavy furniture. This method of moving is the best one for the people who want to have more control over the whole process. And of course it is much cheaper than the full-service.

3. Do-It-Yourself

If you are able to do the whole moving by yourself, you will save a lot of money. Before choosing this method, there are many aspects to be considered, like the amount of your possessions, the distance, the number of friends and relatives available to help you and other things. The do-it-yourself way is usually great if you are moving from a small home or a flat. On the other hand, when moving from a large home across a long distance, it is usually better to use some professional help. However you want to organize your moving, a crucial part of the planning is the budget. Therefore the next article will deal with the cost that’s involved with moving.

Picture: Credits to carlaarena

Real Estate Market in Vancouver: Let's look back

Vancouver BC housing market grew for nearly seven consecutive years, one of the longest and fastest growths ever registered in Canada. Average home prices between years 2001-2007 nearly doubled, while inflation in the same period was less than 14%. Of course this situation meant that many people, especially the ones entering the housing market for the first time, couldn't afford just to buy a house.
After the US housing market got into problems, its Vancouver relative still worked fine for some time and managed to grow until the beginning of 2008. However, in that time the pressure of affordability demand started to influence our market and realtors noticed slowdown, which grew even stronger in next months. At first, the average price stabilized, but later declined, and under the influence of the global economic crisis in the autumn 2008, the housing market of Vancouver got into record-low values in January and February 2009. People were generally afraid of the deep and long taking real estate crisis as the one in the USA.
If you believe the same, look at the statistics around – February 2009 was the point of rebound, not the beginning of stagnation! Since then, all real estate crucial statistics in Vancouver BC show positive trend. If we look at the sales numbers, we can see that the figures in June 2009 reached almost 6 times higher than the level from February and almost twice higher than the results from summer 2008. The percent increase in June 2009 was 75.6% confronted to June 2008. Average price fall stopped in December 2008, remained flat till March, since then continues to increase steadily again. The prices in June 2009 reached again the same level as they were in October last year.

Does this amaze you? Just look at the statistics closely. Look at the new listings change graph. The rapid inflow of new properties on the market stopped many months ago in October 2008, after this month the overall inflow was falling.

This has an easy explanation, which lays in the obvious advantage of residential real estate, which is that people just need a home to stay. People do really need a dwelling, while they can pretty well survive without cars, hairdressers or holidays. Even though the demand may decrease, it is unlikely for it to reach zero level, even for a limited period of time. Certain rules should be kept at the supply side. Your home often is the most expensive item of your whole property. When prices are declining, it may be a good decision to hold your property and refuse selling it, but then this kind of approach helps new housing starts. Finally, buyers and sellers have to reach some point of consensus and the earlier they do, the better for both.

So what are the underlying factors behind Canadian market's fast recovery, regarding that the US market is still fighting with the crisis? The worst part of the US story - wave of foreclosures - was successfully avoided in Canada. The Canadian institutions and individual home owners are in better fiscal situation than the ones in the US. It doesn't mean we are richer; it means we are better prepared to cope with acute financial problems. One of the sectors most affected by the crisis in the US was the subprime mortgages, which is much less common in Canada. Of course our economic fundamentals could be in a better situation now, but they are still quite stabilized.

So what future development can we forecast for the Vancouver BC property market? Sales and average prices are likely to grow steadily during the few oncoming months. Nevertheless, the situation will calm down after getting to the pre-burst level, due to overall economic slowdown. Next year will be awesome especially for first time buyers – with record-low interest rates and prices still under the recent peak, homes won't be so affordable forever!

Vancouver district map by svacher

The stained image of Vancouver: Can it be improved again?

(picture by barjack)

Vancouver scored the highest from all the American cities in the prestigious quality of living study by Mercer. And still it is getting negative international press attention by The Economics and The Independent. Why is that?

While Vancouver has 2.7 mil residents, there have been 45 gunfire incidents from January to March 2009. 17 people died in these. Converted per 1 mil inhabitants, that means 6.3 of them died violently. Compared to Toronto (5.1 mil inhabitants), there was 11 murders in the same period, which works out at 2.2 violent deaths per 1 mil inhabitants – almost three times less!

Double war: gangs fight gangs, gangs fight the police

The number of gangs working in Vancouver has multiplied 10 times over the last 10 years. Speaking in specific numbers, it is more than 100 groups active in Vancouver these days! And what is making these statistics even worse, is 1) bad organization of the gangs, 2) their easy access to weapons, and ) the average gang member age being very low.

Currently, there is a double war in process at Vancouver streets. One of them being of course between the gangs themselves. The gangs are at each other's throats since the price of cocaine from Mexico has gone up. In the recent past, the cocaine price has gone up from $23,300/kg up to almost $39,000/kg, this being caused by the activities against drug cartels led by the Mexican administration.

There is a natural question occurring - why is Vancouver such a drug capital? The answer to this question should mention the general carefree attitude of the place in conjunction with its position on the map and its enormous low populated areas surrounding it, all this resulting in great conditions for a very active drug scene. Also no other place in Canada combines these characteristics to such an extent. Despite all this, the number of policemen in Vancouver is lower (recalculated per number of inhabitants) than anywhere else in Canada - concerning mostly great cities. Moreover, the local politicians are proposing to lower the annual police and court budget by $20 million by 2012. The other battle going on between the gangs and the police would be much more favorable to the latter, if the police had enough resources, both financial and personal.

How to handle the situation

I have been dealing real estate in Vancouver BC for a long time abd I know local safety is always crucial in realtor's business. It would be naive from me to come up with an all-solving idea. However, it seems obvious to me that the police would need to increase its staff count and budget, not cut it back! Safety and security have to become the city's important characteristics again. We are planning to host the Olympics here in 2010, but also and mainly it is in the Vancouver people's best interests. Proposing new strict law by the PM Stephen Harper – labelling gang killings as first-degree murder with a sentence of at least 25 years, is definitely a move to the right direction, but much more has to be done for the city to become what it used to be.

How to Buy Property in Vancouver: Guide for US Buyers

Every country has over the years developed its own process for buying or selling properties. These habits sometimes vary even from region to region within the same country. In case you are thinking of buying a property in Vancouver or Richmond BC, Canada, you might find the following guide useful. If you'd like to find out more, please don't hesitate to visit my Vancouver BC Real estate website.

Finding the suitable property

Before your agent starts their research for the right property for you, he or she will make you familiare with the way the agency operates and also will familiarize you with the 'Working with a Real Estate Agent' brochure, which you will have to sign.

Then your agent starts his or her search for suitable properties for you. If you are used to spontaneous showings, forget about them in Vancouver - here 3 people usually attend the showings (of course you as the buyer, the listing agent and your agent as well), which means organizing three schedules of usually very busy people. After your agent finally finds the property that suits your wishes, a document called The Contract of Purchase and Sale has to be provided by your agent, which is basically an offer to the seller. In order to be able to bring in the right price, your agent will also prepare some background information on the property you expressed your interests in. Since Vancouver has extremely competitive real estate market, be prepared for multiply offers: you will have to fight if you want to win.

Closing the contract

If your offer is accepted by the seller, you've got to wire funds for the deposit, which is usually 10% of the sale price. Don't forget that it can take up to 14 days before your payment reaches the Canadian bank. You might choose to use some trusty third party services (e.g. House Global Foreign Exchange) that would guarantee a timely delivery of the deposit, since that’s part of the contract. When you have approved financing in place, are satisfied with the Home Inspection Report on the property, have been familiarized with all the documentation on the property and have had all your questions answered then you remove subjects (Amendment to the Contract of Purchase and Sale prepared by the Agent). As per the closing date - it is mostly scheduled 2 days before the possession date. All adjustments has to happen before the possession date.

Legal arrangements

After that the contract is ready to be handed to lawyers so that the documents can get ready. The federal and provincial taxes must be addressed at this time. You either have to be personally presented to sign the documents in Vancouver, or you can choose to have them couriered to a law office near them where all the documents can be signed under seal. The funds then will have to be transferred to the Vancouver lawyer's trust account.

immigration news and more

(photo by ecstatist)

Vancouver BC: the best city in the Western Hemisphere.

Just like in 2008, Vancouver proves the be the best city in the Western Hemisphere, as confirmed by recent Mercer's study of quality of living in various cities.

Every year the analysis aims to help multinational companies and governments placing their employees on various international assignments by evaluating 215 cities worldwide.The 215 cities are compared to the base city - New York with the index score 100 in 37 various criteria such as social and political indicators, standard of transportation or security.

Vienna scored as the best city of 2009 with 108.6 points, leaving the former no. 1 Curych behind with 108 points.Only three non-European cities squeezed within the top ten: Vancouver (4th), Auckland (4th as well) and Sydney (10th).As New York occupies 49th place, 47 cities managed to score anywhere between 100 and 108.6 points.Even though Baghdad scored by 0.9 point more than last year, it still finished at the bottom of the list. The difference between Baghdad and the second worst Bangui is 15 outstanding points.

Canadian cities preoccupied the Americas tables: already mentioned Vancouver (4th), Toronto (15th), Ottawa (16th), Montreal (22th) and Calgary (26th) were followed by the US cities Honolulu (29th), San Francisco (30th), Boston (35th), Portland (42nd), Washington DC and Chicago (both 44th).

Of course I have always believed that Vancouver is on of the nicest cities on Earth.Ending within the top 5 best cities in the world only confirms what I already thought.Should you consider moving to this wonderful city, this guide for buying real estate in Vancouver may help you a lot

10 easy tips that keeps your wallet full

Vancouver is not an inexpensive city. Αs we in Vancouver BC real estate care about your financial safety, we have prepared this article!

Has the hard times finally caught up with you?
Do you spend more than you would like?
Put your worries aside: without handy list of 10 common dollar-gluttons, you too can stop overspending on every day expenses.


1) Grocery shopping

Hunger is the best chef and also the worst shopper, therefore eat first before you go shopping for food. Comparing prices per ounce or pint will save you a bundle. You might notice that you always find the most expensive stock right in front of your eyes, while the cheaper alternative (private label or store brands) would be located right at the bottom of the shelf.
If you can tell the difference between a $9 bottle of wine and a $30 bottle of wine blindfolded, buy the more expensive one. If you can't, stick to the $9 one.
On the other hand, don't buy something only because it is cheap: stick to your shipping list!


2) Bottled water

Did you get used to drinking bottled water over the years?Filtering your tap water works just as well. It's always better not to create unnecessary waste, even if it can be recycled - no bottles are better than recycled bottles.


3) Coffee

Can't live without caffeine? Most people can't.But is your stop at that coffee shop really necessary? Making a cup of coffee is not all that difficult. Try it!


4) Snacks

Snacks are important for those long periods between main meals.
Fruits and vegetables works just as well as any chocolate bar, only it is healthier and much cheaper alternative. Getting slimmer is just another side effect.


5) Movies & Cable

You can pay anything between $20 and $30 for 2 cinema tickets these days. For a fraction of that cost ($9 per month for unlimited view) you can watch movies on Netflix.
But how many channels do you pay for? Hundreds? Does anyone watch them? If you have the option, pick only those channels you have use for. No need to pay for what you or your family don't enjoy.


6) Music

Do you still buy new CD releases? Why don't you get your favourite tunes at Amazon or iTunes, where you pay per song, so that you can download only those you really like for under $1 per song.


7) Phone

While some people may be able to live without a cell phone quite happily, most of us can't either for personal or professional reasons. But having a cell phone doesn't have to be a burden. Compare the billing options or switch to pay as you go, if that would make you call less often.


8) Smoking

Smoking has been out of fashion for a long time, but if you still find it difficult to quit, rolling tobacco might be your option. You might need a few days before you master rolling your cigarette, but the saving effect (as much as 50% in many countries) will be astonishing. Learning rolling cigarette properly might take you around a week of practise, but the reward is awesome. You will be able to save as much as 50% of what you are paying now!


9) Petrol

Of course driving less would be the the ultimate money-saver, but that is not always possible. Except for the occasional repairs, petrol is the one thing that raises the cost of car usage. Decreasing it by checking the prices of petrol online in your area is hustle free trick that could save you fortune over the years.


10) Credit cards

You probably heard that one already many times, but if you if you keep using your credit card for every day shopping and in the end find yourself unable to repay it on time, no money-saving tips will ever help you. Old habits die hard, but getting rid of the habit of using your credit card instead of cash is very important if you want to decrease your spendings. Nobody enjoys paying the interests or possible late charges, so why not pay by cash!

(picture: money by jenn_jenn)