It is our goal at The Parks at Plaquemines to keep our buyers informed about the latest information from the local, state-level, and national real estate industry. We post content to our blog that we hope that you as our custom home buyer will find helpful. Look here for information about financing your new home, building restrictions for new homes, and real estate legislation that will impact you as you are looking to buy or build a new home in the Greater New Orleans area.

Benefits of Tree Coverage for a Home

What will shade from tree coverage do for your home?
Increase home value
Keep things cool
Decrease utility bills
Reduce UV exposure
Cut carbon emission

Professionals in the industry will agree that trees and shrubs are not just great for a home’s curb appeal but also for social, communal, environmental, and economic benefits. It is said that tree coverage makes for a healthy and happy living environment. Here are some benefits of having tree coverage around your home.

Increase Home Value

Planting trees and shrubs around your home can increase your home’s value. Homes with mature trees are more alluring to prospective buyers. In fact, HGTV reported that the home value increases 7 – 19% if there are mature trees surrounding it. The Arborist News did a study that showed there is a 3 – 5% price increase in homes with trees in the front yard, a 6 – 9% price increase when there are a lot of trees in a neighborhood and a 10 – 15% price increase if there are mature trees in a high-income neighborhood. A Michigan University study reports that landscaping will give you a 109% return on your investment!

Keep Things Cool

Summer heat is not only uncomfortable but is also heavy on utility consumption. Trees are a perfect solution. They are not only beautiful to look at but also an effective cooling measure. Urban areas are usually hotter than the surrounding suburban areas. This is due to the lack of trees, grass, and shrubs in the city. Landscaped areas with trees and turf can be 25 degrees cooler than the asphalt area in the same location. The USDA’s Forest Service did a study revealing that  a young tree is equivalent to ten room-size air conditioners operating 20 hours a day.

Decrease Utility Bills

This is good for our wallets and the environment. Trees can reduce the temperatures by 6% through shade and adding moisture to the air.  The Center for Urban Forest Research claims that trees planted on the west side of your home can reduce your energy bill costs by 3% over 5 years and 12% within 15 years. Over time, these results can greatly help you make your home more eco-friendly.

Reducing UV Exposure

Shade is your skin’s best friend when it comes to reducing bad UV exposure. Skin cancer is the most common form of cancer in the US according to the American Cancer Society. Trees are a natural sunblock that provides a physical barrier between your skin and the sun. A neighborhood that is covered in trees reduces UV exposure in half!

Cut Carbon Emission

The whole world has seen an increase in global CO2. Trees are extremely important when it comes to the earth’s carbon emissions. Trees can store over 708 million tons of carbon, in urban areas trees can store an additional 28.2 million tons of carbon and 100 million mature trees around homes can equal up to $2 billion annually in reduced energy costs.

Remember in order for trees to flourish and help the environment, homeowners need to care for trees and the landscaping around their homes. Experts can give trees a checkup to keep them healthy and keep them going from the roots up.

Click Here For the Source of the Information.

Rising Home Prices Are Clashing With the Slowdown in Economic Growth

Are rising home prices a wild card for the Federal Reserve?

According to an article posted by Bloomberg, the high home prices are a hitch in the Federal Reserve’s plans for the nation’s slowing economy. Many say that this is the worst inflation the country has seen in forty years. The Federal Reserve wants to put a stop to the inflation that is currently hurting our economy.

The change is planned to come around September of this year. The goal is to have its policy rate at a level it considers to be restrictive, putting further downward pressure on prices.

In order for this to happen there are several factors that have to align. The three biggest are the country needs to pay three months of declining core inflation, measured month-over-month, the rate of home price appreciation needs to slow down in market price gauges and energy prices need to stay contained. If this does happen, the Fed will be able to slow the rise in interest rates.

The reason the change will not happen until September or later is that Colin Powell wants to witness a slow down in inflation via several reports. The one thing that will stall this is the housing market. Why? Because housing inflation falls behind market prices by several months.

This means that when market prices slow down, the housing market will continue to rise for several months extending into 2023. The housing market is still going strong because of low invetnory.

Click Here For the Source of the Information.

Tips and Strategies for Building and Managing Your Credit

Good credit has lasting financial benefits but building credit can look like a huge task. The trick is the more you practice good credit habits, the better your credit will get. There are several things you can do to build, rebuild and improve your credit. Here is what you need to do to start the process.

Build Your Credit

One of the best ways to do this is to apply for a secured credit card. A secured credit card is guaranteed upfront by a cash deposit. If you deposit $500 then your credit limit will be $500. You will want to make payments on time and keep a low balance to ensure you are building your credit.

Another good way to help boost your score is to ask a family member to add you as an authorized user on their credit card. You will get a credit card with your name on it and the primary cardholder will set a limit on how much you can charge. This is a good way to manage a credit line.

A major loan like a student loan or car loan is reported to the major credit bureaus making this a great way to build up your credit. Paying your loan payments on a car or student loan will build good credit. Creditors like to see a history of on-time payments which shows you can manage your line of credit responsibly.

Keep Up Good Credit Habits

Make payments on time on everything such as your utility bills, credit card companies and other accounts. Also, you want to have different types of credits because having different types of credit improves your credit score. Accounts like cell phone bills cannot be included.

Don’t just apply for a card and let it sit, use it on a regular basis. This keeps your credit utilization low. Your credit utilization ratio is the percentage of your available credit that you actually use.  For example if you have a $1,000 credit limit, ty to keep your balance under $300 which is around 30% of your credit limit.

Get Your Credit Back on Track

To do this, you need to make sure your credit report does not have any errors. Knowing your credit score is a big plus to having an idea of your financial holdings. Getting a credit report from one of the credit bureaus will show you your credit activity, your credit history, and the status of your accounts. If there is an issue or a change in your financial situation, contact a creditor directly. They will work with you to create a payment plan.

Overall remember, that the best way to handle your credit is to live within your budget and avoid bad credit. If you do find yourself with bad credit, catch the problems early.

Click Here For the Source of the Information.

Will an Increase in Climate Risks Affect Insurance?

Natural disasters are becoming more common as climate risks increase. Homes and neighborhoods all around the country are being affected by the record, wildfires, floods, and other natural disasters. Unfortunately because of these increasing risks, a good many insurance companies are decreasing their options, increasing premiums, and even not offering insurance in certain areas. Homeowners and home builders are feeling the effects as seen in the huge gap between insured and uninsured losses.

Because of this growing issue, the National Association of Home Builders (NAHB) began the Climate Change Insurance Task Force in 2021. The task force’s purpose was to study these issues and provide a recommended roadmap for the home building industry, focused on identifying gaps and challenges in current insurance products available to homeowners to cover losses from wildfires, flooding, earthquakes, extreme heat, and other climate-related losses and, identified alternatives and recommended next steps to ensure our members and their customers have access to appropriate insurance products.  Their final report was given to the Senior Officers in April 2022 and included introducing more options for multi-state insurance and looking into Congress forming an all-disaster reinsurance policy. This policy would then be supported by the federal government.

Due to the outcome of the study, NAHB will now start meeting with insurance trade groups to see how they stand with the NAHB’s high-priority recommendations. They will also develop resources and keep members at the Spring Leadership Meetings aware of any updates.

Through the communication and updates, NAHB is striving to resolve the insurance challenges. They will continually address the changing natural disasters and how they are affecting housing stock in the country. Their goal is to consistently explore the options that will help with these rising concerns at the local, state, and federal government levels.

Click Here For the Source of the Information.

How High-Interest Rates Can Be Overcome

The better your credit score, the better interest rate you can get when it comes to mortgages. In fact, the first thing a mortgage lender will look at is your credit score. This is now more important than ever in today’s housing market.

A High Credit Score Means you Pay your Debts on Time

A mortgage lender wants to know that you will repay your money on time. Those who pay back slowly or do not pay back at all have lower credit scores. Lenders do not want to risk those who pay back slowly.

This doesn’t mean that they will not offer you a loan, but it will be at a much higher rate to compensate for the risk. For example, the difference between a 4% rate and a 5% rate on a 100,000 30-year loan is around $59 per month, over the age of the loan that will cost $21,240!

A High Credit Score Means you Have a Good Mix of Credit

A good score also depends on your credit mix. You want to be able to prove that you can handle a variety of debt such as credit card and no installment debt. A mix of both revolving and installment debt shows that you can handle both types of debt. Showing that you can handle both can help you get a lower interest rate.

Why Lenders Base your Interest Rate on your Credit Score

Mortgage lenders will tell you that your credit score is the number one factor in determining your risk of default. If you are approved and have less than stellar credit, you will be charged a much higher interest rate. The lenders will make more money off of you in the event you do default.

Increase your Mortgage Credit Score Before Applying for a Mortgage

If you do have a lower score, then think about improving it before applying for a mortgage. Get your debt under control, have a stable job, and have some money saved before you apply for your mortgage. Improving your credit score is the key to a lower interest rate and with a few simple steps, you can accomplish this.

Click Here For the Source of the Information.