(Do you know the reference? Yep! It's the epic 1965 comedy, Those Magnificent Men in Their Flying Machines.)

Though they could, in this instance, interest rates neither went up, tiddlee, up, up nor down, tiddlee, down, down. The Fed decided against cutting interest rates. Just about everyone (including the Fed) expected interest rate cuts this spring. However, given current inflation levels, the Fed decided to keep rates as they are. The Fed also signaled it would likely keep interest rates as-is for the rest of the year.

Of course, the Fed’s current stance could change—I will let you know if it does. The Fed is scheduled to meet again in June, July, September, November, and December.

What does the Fed’s current position on interest rates mean? The Fed believes (a) that inflation is growing too rapidly and (b) that higher interest rates lead to lower inflation levels. By keeping the interest rates higher, the Fed expects inflation to cool to 2%. Once inflation has cooled, it’s possible the Fed will lower interest rates.

You may have seen the federal funds interest rate as set at 5.25% to 5.5%, but if you try to obtain a mortgage, you’ll see a higher rate. Why is that? The 5.25% to 5.5% federal funds rate is the rate at which banks borrow money from each other overnight. When banks lend money to the public, they pad the interest rate in order to make money. The interest rate for a mortgage today is around 7.6% for a 30-year fixed rate mortgage and 6.8% for a 15-year fixed rate mortgage.

What does this mean for us?

Here’s what I think.

1.      People will see their buying power reduced.

2.      The bottom will be squeezed out of home ownership.

3.      People who would have sold will stay in place.

First, people’s buying power is reduced. Let’s say a person was approved to buy a $1,000,0000 home a couple of years ago when interest rates were lower. That same person may only be approved to buy a $800,000 home today.

Second, the bottom will be squeezed out of home ownership and will continue to rent. Just like our million dollar buyer became an $800,000 buyer, so a person who would have bought a $800,000 home a couple of years ago will now buy a $600,000 home and so on until the person who would have bought a $200,000 home (yes, those still exist in the DMV 😊) can no longer afford to buy and is forced to continue to rent.

Third, people, such as baby boomers, who would have sold their home to downsize to a home more suited to their present lifestyle, will stay where they are.

Are you looking for cost-effective ways to add value to your home? Would you like to increase your potential selling price without spending an arm and a leg or promising your firstborn?

When it comes to renovating, costs can spiral out of control faster than a politician changes positions (cheap shot, but hard to resist 😉). Especially considering the high cost of living ascending new heights, I created this list with frugalness top of mind!

1. Paint your front door.
It’s amazing what a difference a good first impression makes. Normally, I advise sticking to neutral tones when painting inside or out, but when it comes to your front door—have no fear and go bold! When you go to the paint store, take a photo of your home with you and ask a paint salesperson for advice about what’s popular in general and what can work for your home in particular.

No matter what color you choose, a fresh coat of paint will make your home look more modern and fresh.

2. New shower heads and toilet seats
Simple changes, but so often overlooked. You can buy new showerheads and toilet seats for a relatively small cost and instantly make your bathroom appear more modern without undertaking a full renovation. For bonus points—update the shower curtain while you’re there.

3. New kitchen cupboard handles.
Did you know that most kitchen cupboard handles are a standard size? And you can buy new, modern handles at most large hardware stores starting at around $5 each. Most handles can be taken out and replaced with nothing more than a screwdriver.

Tip: Take one of your old handles along to the store with you to ensure you buy the right size. Also, you may need a small saw to cut the screws on the new handles down to size—so check that you have one or buy a cheap one while you’re at the store as well.

4. Invest in storage.
You would be blown away by how much value you can add just by de-cluttering. Effective storage clears floor space, making your home feel bigger and more spacious. Go one step further and donate anything you haven't touched in 12 months to your local charity. Someone out there probably needs it more than you.

5. Find more sun.
The 2 most important (and valuable) property features are sun aspect and location. With that in mind, are there trees on your property stopping your home from getting as much sun as it should be? Give them a healthy trim to maximize your sunshine. It's cheap to hire power tools for this sort of thing. Or invest in your own so you can keep on top of overgrown trees and hedges in future. Please stay safe though! If you would rather hire a professional, contact me and I'll put you in touch with a local arborist who can help.

Buying a home is an emotionally charged decision.

First, you are trying to decide where to spend the majority of your time in the years ahead. Second, you have to beat every other buyer who wants the same home and third, you have to reach agreement with the owner on price, terms, and settlement date.

During this process our competitive nature and desire to nest come to the forefront. Determined not to miss out, we focus single-mindedly on securing a home at all costs, fearing the rejection that comes with missing out. We fear we will never find another home like this. That we'll be touring homes forever.

When your offer is finally accepted, the sudden relief can bring with it moments of high anxiety. Thoughts like, "What on earth have we just done?!" naturally pop into our minds as we ponder the size of the mortgage we are about to take on. These feelings can be compounded when you move into your new home and see it empty for the first time. Barren and furniture-less, suddenly every spot on the wall or faded patch of paintwork stands out.

If your mindset is off at this point, you could fall into the rabbit hole of buyer’s remorse, convincing yourself that you made a bad decision buying your chosen home. These negative feelings can take months or years to shake due to the value of the transaction and the impact our choice of home has on our day to day lives.

To help you avoid slipping into the mire of buyer’s remorse, here are some tips to keep your head in the game and approach the home-buying process with emotion and logic.

1. Learn about the area you are buying in.

Buy with emotion and justify with logic. If possible, visit at least 5-10 houses in your target area before making an offer. Find out what else you could buy for your money so that when you do purchase a home, you can be confident it was good value at the time.

2. Never skimp on research.

Buyer’s remorse is most prevalent when you feel short-changed after moving in. This could occur if buyers avoid paying for a home inspection, only to find that the roof needs replacing within 6 months. Or that the garage floor is covered in water during heavy rains.

Paying for independent advice can feel painful at the time, especially if you hire specialists like chimney sweeps, mold testers, radon gas testers, structural engineers, in addition to a general home inspector, but your future homeowner self will thank you for it.

3. When you miss out, take a few days off.

When your offer gets rejected it can be heartbreaking. You have imagined yourself living in this home, raising your kids there, and now someone else has taken it away from you! It’s at this point where many buyers rush out and buy the very next home they see, even if it never quite suits their needs. Just to erase that bad feeling in their stomach.

If you miss out on a home, take a few days off looking. Take the time to acknowledge the loss and prepare yourselves to re-enter the market with fresh eyes and fresh hope.

4. Forget about timing the market.

The right time to buy a home is when you can afford to do so. If you wait for the market to fall you could end up waiting a long time. Conversely, if you plan to hold onto your home for the medium term (5-10) years then you will give yourself plenty of time to ride out any potential blips in the market.

5. Second-hand realism.

If you are buying an older home, understand that it probably won’t be in perfect condition the day you move in. There will be nicks in the walls and scuff marks on the floor. There may even be faded spots in the carpet where the sun comes in, or where a soggy pot plant once stood.

6. Buy for location.

You can change everything about a home, except where it is. Choosing a home in an area you like, close to the schools you want and with the sun aspect you desire, will help you avoid buyer's remorse. Anything cosmetic that isn't up to snuff can always be fixed!

7. Have a move-in budget.

Inevitably, soon after you move into your dream home, something will unexpectedly break. Welcome to the joys of homeownership! This can trigger feelings of buyer’s remorse if you don’t have some money set aside to fix any small issues that come up after you move in. Take this into account when you make your offer and keep a small fund in reserve for unexpected costs.

Bonus Tip

Already own a home? Smart sellers understand the value of their home first before wading into the buying market. This allows you to know what you have to spend, puts you in a strong position with a large down payment, and can remove a lot of stress from the process.

Contact me at amber@ambergw.com to book a call and we can talk through your options together.

Are you planning to apply for a mortgage in the near future?

If so, there are steps you can take in advance to increase your chances of getting a YES from the mortgage lender.

1. Practice good account conduct. Avoid going into overdraft by accident. This happens when an automatic payment is slightly more than the amount available in your bank account. While this may not involve a large amount of money, it can serve as a red flag for the lender and it can affect your chances of being approved for a mortgage later on.
2. Avoid short term debt on consumer goods like TV's, sound systems, expensive cars. If you can’t afford to pay cash right now, consider whether you should be buying it. Things that are on monthly payment plans really do matter in the eyes of the lender. Even if the weekly amounts going out are small. Avoid monthly payment plans if at all possible.
3. Income is everything. Most lenders will value regular income over a sizeable savings account. Even though a healthy savings balance potentially puts you in a better position to be able to pay your mortgage on time. Having lots of cash in the bank is great but is no guarantee the lender will approve you for a mortgage.
4. Avoid going on vacation if it’s all going on the credit card. Lenders will potentially scour your spending records and look for red flags like excessive credit card spending.
5. Job stability helps. The longer you have been with your employer, the better. Keep that in mind if you are thinking of becoming a contractor, or have a scattered job history and are thinking about making another move.
6. For self-employed people, taxable income is what matters. Lenders are looking at your income AFTER your expenses so keep that in mind when you are deciding what to claim.

Contact me at amber@ambergw.com if you are thinking about making a move in the near future and I can help you with your mortgage pre-approval.

Even if you have no thought of selling anytime soon, it's important to consider future resale value when making changes to your home.

These 5 cost-effective home improvements will increase the livability of your home (yes, you should enjoy updates yourself 😊), provide you with a great return on your investment, and maximize the value when it comes time to move.

1. Outdoor living - If you have a small flat area, anywhere on your lot, adding ground-level decking is a relatively cheap and easy way to add value. Dress it up with outdoor seating, a barbeque pit, outdoor rug, and potted plant and you have a space that visitors will love. It will also look beautiful in photographs and attract buyers looking online.
2. Garage carpet - Turn your garage into a multi-purpose room by adding purpose-made garage carpet. This relatively cheap investment can turn a cold concrete box into a comfortable space for play, work, or exercise. Especially if you paint the walls a modern, fresh color too. Plus, you can still park your car in there when you need to! When you offer your property for sale, dress the garage up as a home gym or office, so buyers can see the potential.
3. Plant cherry blossom or fruit trees - As a buyer, there is something heart-warming and enticing about homes with established trees. It's that bonus “icing on the cake” which can separate your home from the rest. These trees are cheap to buy but take a few years to grow and start looking impressive. So the time to plant them is well before you are even thinking about moving. Talk to your local garden center to find out what varieties will work best in your location.  
4. Invest in extra insulation - In the past, buyers would simply ask, “Is this home insulated?” Now they want to know exactly what kind of material has been used, how recently it was installed, and what condition it's in. This relatively cheap focus area is easy to improve. Even if you already have insulation, you can often improve its quality by using better materials or by adding an extra insulation “blanket” in your roof space to retain more heat in the winter and cool air in the summer and/or a “ground moisture barrier” under your home to stop any rising damp. The best part is, you enjoy the benefits of living in a more efficient home right up until you decide to move.
5. Painting and gardening - In my experience, nothing gives you a better return on investment than painting and gardening. Every aspect of a home looks better with a fresh coat of paint. The result is even better if you use a warm, neutral, modern color. Ask your local paint shop what their tried and tested colors are or contact me for suggestions. If in doubt, stick to a light warm-gray (picture the color of “sand dunes”) for interior walls. Feature walls are okay, just limit it to one wall per room at most and avoid it if the room is already dark.

As for gardening, trim or remove any trees that are blocking the sun or creeping close to your gutters. This will stop the gutters from being blocked up with leaves. Next, focus on clearing space to show off as much of your lot as possible to visitors and future potential buyers. If you have a lot of grass or empty space, try using concrete steppingstones to create a path. Perhaps leading to some ground-level decking as mentioned above, or to mark out certain areas, like a veggie garden or play area.

But what about kitchens and bathrooms?

These two areas are super important and can add serious value. In my experience though, they are also areas where you can spend a lot of money just to end up breaking even or worse, over-capitalizing. If you are renovating your kitchen or bathroom, focus on what's going to make your life better and avoid investing in expensive, trendy features you’ll never need.

What do you think about this list? I'd love to hear your thoughts. Email me at amber@ambergw.com.

My parents taught me that money meant nothing. It wasn’t important. In fact, my mom liked to joke that the biggest arguments between married people revolved around money, but my parents never fought about money. As she put it, "There was nothing to fight about."

Even the teachers at the school I attended for most of my young life—grades 2 through 12, except 6 and 10—taught that money is the root of all evil. Oops, they later corrected themselves, “Money is the root of all kinds of evil.” Is that really any different? To a kid, it all sounded like money equals evil.

After many years of being broke (literally holding my breath as I watched my bank account dwindle to a few dollars until it would be meagerly replenished come pay day), I said enough. I want more. I want more freedom to do the things I want and to care for myself and my loved ones. And I want less. I want less stress wondering how I will pay for the essentials, like housing.

It also occurred to me that maybe others want more and less, and maybe I could help them. You see, while my parents instilled a disdain of money in me, they also instilled a sense of mission. For the longest time (yes, even to this day and as cheesy as it sounds), I want to change the world.

I realized: I want to make as much money as possible and help others make as much money as possible.

At first, I felt the need to justify this realization: I don’t want money, I want to be able to get the best medical care for my son. Or, I don’t want money, I want to have a safe car. Well, duh. Money is not a doctor that can treat my son. Money is not something I can sit in to take me from place to place. Money is the means to achieve the end. But I feel I deceive myself when I say I want the things money can buy instead of saying that I want money itself.

You can’t strive for the thing and hate the means of achieving the thing. Well, you can, but that causes a lot of stress. Eschewing money is also disrespectful to money. Think about it. Your grandma buys you a gift and you love and enjoy the gift while simultaneously disparaging your grandma.

Instead, I look at money for what it is—an amazing thing that I honor and respect and want more of in my life and the lives of my family, friends, and clients. The more I make money welcome, the more money helps me get what I want.

And do you want to know another important thing about money? Money reveals. The more money I have, the more it shows how much value I bring to others. We see this principle demonstrated everywhere. Why does the manager make more than the people she manages? She's bringing more value by coordinating the team's efforts rather than just providing her own, individual effort. People vote with their wallets. If they give me money, they are saying that I provided more value to them than the money they give me (I mean, why would someone willingly overpay? We spend money when we think the value of the thing we receive is greater than the money we are paying for the thing). So the more money people give me, the more value I've given them. Pretty cool, right?

Is it really all about money?

What do you think? Email me with your thoughts at amber@ambergw.com.