Be prepared for any home emergency.

Be prepared for any home emergency

Sometimes disaster strikes, despite your best efforts to prevent it. And that means you should always be ready for the unexpected.

The right emergency gear will help you protect your home and family, as well as deal with unpleasant realities like a post-storm power outage or broken windows.

Here are the most critical tools and products to have on hand when things go wrong.

Throughout the house

Place wireless water alarms under sinks, behind the fridge, anywhere that water would pool if there’s a leak — they’ll sound off at the slightest hint of moisture. Zircon Leak Alert three-pack, $25; amazon.com

Keep a fire extinguisher on every floor of your home, and an extra one in the kitchen, where the majority of fires start (some insurance policies will give you a discount on your premium for having them). Get multipurpose A:B:C extinguishers that douse flames from three types of fires: ordinary combustibles, flammable liquids, and electrical. Opt for a five-pound fire extinguisher, which is light enough for most people to use easily. Check the pressure gauges periodically and have the extinguishers recharged when the pressure drops. Kidde Full Home fire extinguisher, $40; homedepot.com

Supplement hard-wired smoke detectors (if you have them) with at least one battery-powered model per floor, especially in the kitchen and near bedrooms. Go with a model with a sealed-in, 10-year lithium battery to spare you frequent battery replacement. Kidde Long-Life sealed battery smoke alarm, $20; walmart.com

For the best protection, opt for separate carbon monoxide alarms instead of combination smoke/CO detectors. Place one on every level of the home and outside each bedroom or sleeping area so that occupants will wake up if it goes off at night. Plug-in versions with battery backups are convenient and discreet. First Alert plug-in carbon monoxide detector, $33; amazon.com

Basement, laundry, and mechanical room

A sump pump alarm has a sensor wire and probe that detect rapidly rising water levels, tipping you off to a potential flood. Reliance Controls sump pump alarm, $15; homedepot.com

An automatic shutoff valve for your water heater cuts off the supply to the device as soon as it senses a leak of any kind. FloodStop auto shutoff valve for water heaters, $115; safehomeproducts.com

If you forget to turn off the water supply to your washing machine when you’re finished sudsing your duds, then this is the gizmo for you: a switch that automatically opens the valve as soon as you turn the machine on, and then closes it when the rinse cycle is over. Watts IntelliFlow automatic washing machine shutoff valve, about $200; amazon.com

Upstairs bedrooms

Place sturdy escape ladders in each bedroom near a window. Practice setting them up in case you have to do it quickly. First Alert three-story fire-escape ladder, $72; target.com

Collect all your gear in a waterproof plastic tub and stow it in an easy-to-access spot in your house.

1. Duct tape. Use it for on-the-fly repairs and temporary fixes. $3.50 per roll at home stores

2. Blanket. Mylar is warm and lightweight, and folds up small. $3.50; grainger.com

3. Multitool. Get one with a pair of pliers and a can opener. $55; leatherman.com

4. Radio/phone charger. A hand crank will allow you to juice up the battery. $20; amazon.com

5. Work gloves. Leather grips protect your mitts during poststorm cleanup. $48; ironclad.com

6. Nylon rope. Use it to secure heavy outdoor furniture or tie down a flapping door.$30 per 100 feet at home stores

7. Lantern. A battery-operated model is safer than candles. $40; coleman.com

And add these multitaskers:

8. Fishing line. Use it wherever rope is too thick to get the job done.

9. Vinyl tablecloth. Lay it down to create a clean zone in any area.

10. Baby wipes. They’ll remove grime from your hands and practically any surface.

Make sure to include first-aid supplies, three days’ worth of bottled water and nonperishable food, and a list of important phone numbers.

Living off the grid in a mail-order home.

Living off the grid in a mail-order home

NEW YORK (CNNMoney) — House Arc may look like an egg-shaped antidote to McMansion mania, but this small mail-order home was really designed as a way to quickly provide housing to victims of disaster.

“We wanted to see how we could produce a house that would fit into a flat packing container that could be shipped to communities in need, like New Orleans after Katrina,” said architect Joseph Bellomo, who worked on the modular home for two and a half years.

The result was House Arc, a 150-square-foot structure of hollow steel tubes. Not only can the 3,000-pound modular home withstand high winds, it can also be boxed into a 120 cubic-foot freight container and shipped off to its next destination.

House Arc is designed to be put together like a piece of Ikea furniture, according to Bellomo. In other words, anyone with moderate carpentry skills should be able to assemble it. If the home is no longer needed, it can also easily be taken apart and shipped somewhere else.

The curved design is so strong because it works like an arch, spreading the weight of any load, such as the pressure of a strong wind, across the surfaces rather than allowing it to concentrate on one spot.

For Bellomo, it was important for the home to be practical yet also attractive. Disaster victims are often relegated to substandard housing conditions, packed into trailers or even tents for months after they lose their homes, he said.

Bellomo was inspired to create the modular home after he made Bike Arc, a steel-arched shelter that riders could lock their bikes into.

Even though House Arc has a footprint of less than 100 square feet, it’s roomier inside, thanks to walls that bow out and nine-foot high ceilings.

The cozy mail-order home can also be added to a backyard to expand living space, say as a guest house. Or it could be used as a cabin in the woods.

But the cost is still high, at a base of about $55,000. However, Bellomo wants to automate the production process, which should cut the price at least by half, he said.

Options for the modular home include plumbing, ceiling fan and solar panels for the roof. At this point, customers would have to arrange for these installations themselves.

Home prices lowest since 2002.

Home prices lowest since 2002

NEW YORK (CNNMoney) — Home prices hit new post-bubble lows in March, according to a report out Tuesday.

Average home prices were down 2.6% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have not been this low since mid-2002.

“While there has been improvement in some regions, housing prices have not turned,” said David Blitzer, spokesman for S&P.

Although five cities — Atlanta, Chicago, Las Vegas, New York and Portland — saw average home prices hit new lows, that’s an improvement from last month’s report, in which nine cities notched new lows, Blitzer noted.

Where home prices are rising fastest

In 13 of the 20 cities, average home prices fell in March from the year before. Atlanta fared the worst, with home prices down 17.7% year over year. Home prices in Atlanta, Cleveland, Detroit and Las Vegas are all below their January 2000 levels.

Alternatively, Phoenix posted the largest gain, with prices up 6.1% from last year. Other cities showing an uptick included Dallas, Denver and Miami.

Overall, the 20-city composite is down about 35% from its peak in 2006.

Experts say affordable mortgages, combined with much lower home prices, should help to bolster the housing market.

“It’s probably the best time to buy a home in decades,” said Pat Newport, an analyst for IHS Global Insight.

“But the problem is that unless you have good credit, you are probably going to have trouble qualifying for a loan,” he added, referring to overly tight lending conditions.

Last week, a report by the National Association of Realtors showed that home sales jumped in April. Sales of new homes were also higher in April, according to a separate government report.

“This might be a strong season, but there’s a good chance we’ll continue down for years still,” said Robert Shiller, professor of economics at Yale University. “There’s too much uncertainty.”

2011-12 Cost vs. Value: Big-Bang Remodeling Projects.

2011-12 Cost vs. Value: Big-Bang Remodeling Projects

Find out which remodeling projects will provide the biggest bang for your buck this year, according to Remodeling magazine.

Optimizing the use of space in a home will not only attract buyers but also give sellers more bang for their buck, according to Remodeling’s “2011–12 Cost vs. Value Report,” conducted in cooperation with REALTOR® Magazine and NAR’s HouseLogic.com.

An attic bedroom addition costing $50,148 was expected to recoup 72.5 percent of the cost nationally—inching up 0.3 percent from the 2010–11 report. The minor kitchen remodel also fared well, returning an estimated 72.1 percent of the nearly $20,000 job cost.

The report looks at the estimated cost and expected resale return of 35 mid range and upscale remodeling projects in 80 markets.  The estimated costs and returns were derived from a survey of more than 3,000 REALTORS® conducted last summer. As in past years, REALTORS® picked exterior projects to recoup the most at resale. Among those, new fiber-cement siding was expected to provide the highest return, recouping an estimated 78 percent of the $13,461 cost.

Top 6 Returns

Siding Replacement (upscale) – fiber-cement     
Job Cost: $13,461
Resale Value: $10,493
Cost Recouped: 78%

Entry Door Replacement – steel    
Job Cost: $1,238
Resale Value: $903
Cost Recouped: 73%

Attic Bedroom Addition        
Job Cost: $50,148
Resale Value: $36,346
Cost Recouped: 72.5%

Kitchen: Minor Remodel             
Job Cost: $19,588
Resale Value: $14,120
Cost Recouped: 72.1%

Garage Door Replacement          
Job Cost: $1,512
Resale Value: $1,087
Cost Recouped: 71.9%

Garage Door Replacement (upscale)               
Job Cost: $2,994
Resale Value: $2,129
Cost Recouped: 71.1%

Source Hanley Wood, LLC.“Cost vs. Value” & realtormag.realtor.org/

Passive vs. active real estate investment.

Passive vs. active real estate investment

GOOD PIECE BELOW on real estate investment:

Q: I have been listening to your show through iTunes and have learned a lot over the past few weeks. Thank you for the information you share.

After listening to the show outlining the opportunity for real estate investment, I was wondering if investing in REITs is a viable alternative to buying and renting properties. What would be the pros and cons, and what should I look out for if taking this route is workable?

A: We’re glad you asked. While this may be the single best time to purchase investment property in the last 50 years (or next), some investors just aren’t cut out to be landlords.

The day-to-day management of 50 or 60 pieces of real estate isn’t for everyone. Ilyce recently spoke with a gentleman on her radio show who has purchased nearly 70 investment properties for cash since 2008, and now has a monthly income in excess of $40,000. He manages to take care of all of the properties while still holding onto his day job. (His four daughters have all gone through foreclosure, but that’s another story.)

That kind of inventory requires a tremendous amount of discipline and focus. Even if this gentleman has two people working for him, it would be tough to make sure all of the properties are rented, that rents are being paid on time each month, that the tax bills for the properties are paid on time and that the properties are properly maintained.

Even if you don’t have 70 properties, managing investment real estate requires organization and a willingness to deal with tenants. Quite simply, it can be a lot of fuss, and not everyone is cut out to be a landlord.

For those who want to invest in real estate but aren’t ready or willing to be a landlord, you can explore the world of real estate investment trusts (REITs).

REITS are a collection of income-producing property or mortgages against a certain type of real estate. According to the website for the National Association of Real Estate Investment Trusts (NAREIT), the nonprofit trade association for the industry, to qualify as a REIT, “a company must have most of its assets and income tied to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. A company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. As a result, most REITs historically remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate tax. Taxes are paid by shareholders on the dividends received and any capital gains. Most states honor this federal treatment and also do not require REITs to pay state income tax. Like other businesses, but unlike partnerships, a REIT cannot pass any tax losses through to its investors.”

While a REIT must pass at least 90 percent of its taxable income to shareholders, it’s difficult to know if smart decisions are being made within the REIT as to how expenses are paid. Also, because REITs produce dividend income for their shareholders, the stock price generally doesn’t go up as quickly. When evaluating a REIT, it’s important to know what the underlying holdings are, what kind of income has been produced, what the REIT’s history of dividends has been, what its projections are for future income, and how easy or hard will it be to sell the REIT shares when you decide it’s time.

At NAREIT.org, you can search for information about a particular REIT and look up information about REIT sectors. There is an excellent REIT 101 section with basic information that would be helpful for anyone considering this as an investment.

With a REIT, you get to be a passive investor in the real estate investment market, and you can diversify your portfolio to spread around the risk. Instead of buying one house, you might be investing in a REIT that owns 10,000 investment properties. But as with any other investment choice, you might choose well and be happy, but you could also choose the wrong REIT and later regret it. Remember: As with any investment, past performance is no guarantee of future results.

There are other ways of investing in real estate. Depending on your federal income tax situation, you may be interested in investing in mutual funds that invest in homebuilders and other real estate companies. You have a wide variety of choices of where to invest your money, but you need to have a goal in mind, determine the benefits of any investment, and then decide on the risks you are willing to accept.

Source: Ilyce Glink & Samuel Tamkin Real Estate Matters, Tribune Media Services