Casualty Insurance Articles and other related links...

New articles on Yahoo Finance... 

My Experience Filing a FEMA Flood Insurance Claim

What My Homeowners Insurance Covers, and What it Doesn't

How I Am Preparing to Protect Financial and Tax Records Ahead of Hurricane Irene

Managing the Risk and Cost of Food Borne Illnesses in a World of Food Recalls

Tiny Mile Square Town of Hoboken Battles Hurricane Irene

Hope you find them useful.

Some more recent finance articles... scroll to August for a complete list...

Where Can I Save My Cash?

Why I Am Preparing for Another Crunch in the Credit Card Sector

 How I Saved Over 50% on My College Textbooks

Building a Tax-Advantaged College Fund for My Children

Saving Without Sacrificing Brand Loyalty

Lack of Money Did Not Stop Me From Going to College

Common Household Items That Save Me Hundreds of Dollars

Property Tax Bill for Hoboken 2011-12

I was wrong. But I am happy.

In October 2010, I wrote that property taxes could go up starting in August 2011 despite the Hoboken mayor's promise to cut 5% taxes. The results are in.

For Aug (3Q11) and Nov (4Q11), my taxes are down 5% compared to what I paid in May (2Q11).
However, for Feb (1Q12) and May (2Q12), they are 3% higher than the 3Q11/4Q11 amount, but still 2.5% lower year over year (compared to 2Q11).

The 25% promise of tax cuts might not happen, and the property taxes would probably still go up medium to long term, but short term, I am a happy homeowner. It is one ray of joy on a dark day for the U.S. markets.

My new home on Yahoo Contributor Network

10+ of my articles are now on Yahoo's Associated Content (including a couple on Yahoo Finance). Here is a link to my public profile, which has a list of all the articles. You can subscribe to using a RSS feed.

Dalia's Yahoo Page

Personal Finance articles:


How I Save Thousands of Dollars in Income, Sales and Property Taxes
10 Ways I Save on My Cellphone Service
How I Reduce Electricity Use by Up to 25% and Lower My Energy Bill
How I Save on Prescription and OTC Medications
How Packing the Right Credit Card for Foreign Travel Saved Me a Bundle
My Investment Approach Toward Charitable Giving

My goal was for my longer shelf life, broad reaching and general interest articles to reach a broader audience, which I hope to accomplish with the new platform. The majority of articles will be cross-linked here as well.

For many who don't know me personally, I also have a photo uploaded. Hopefully, you can now put a face to the name. Maybe, I've bumped into you somewhere in town!

And finally, some parenting and lifestyle articles. I am hardly an expert, but given I do write these, I figured I might list them here as well.


What to Pack when Traveling with Kids
Ease Your Child's Transition to Preschool

Happy reading (and saving).

Dalia

Relocating: Please pardon our appearance!

Looking for a recent (or old) blog post and it has disappeared?

I am in the middle of relocating SOME of my content to another platform. As you know, I love writing about Hoboken AND general finance articles.
In the future, I will use my Money Matters blog to publish local interest articles, however, broad reaching and general interest articles will be published on another website.

All content, on this blog and on the new website, will continue to be original and hopefully informative, although you might see some familiar topics updated and rewritten with a fresh perspective.

Happy reading!

Dalia

Is That a Comp Killer?

In my last blog, "Property Tax Appeal… Questions to Ask Your Expert, or Yourself" I posed a list of questions. One of them was:

A comparably sized condo sold in your building for $10. Can you use that sale to bring down your valuation?

As you have probably guessed, that comparable sale is not usable. If this is one of 3 comps you used, the assessor will disallow your appeal.

There are many types of comparable sales that are not usable, primarily because they do not reflect the true value of the property sold. These could include a house you bought from your relative which is not at "arms length," a short sale, or a foreclosed property. These have been historically disallowed, and they will continue to be. Don't let anyone tell you otherwise.


Can you figure this out on your own? ABSOLUTELY!! If you use a software, it will have it figured out for you. Easytaxfix claims they have overlaid all this data from the SR1A database. But wait, what if I tell you, you don't even need to go to another database? You have this info staring at you in the same database that has all property records. Simple huh? There is no risk in that.

With a pair of keen eyes, and with some help from Google, anyone can weed out comp killers.

Kathy Zucker wrote a new blog about the appeals process today. Thanks for the plug Kathy. For those seeking personal help, I charge $100 (for high rise condos) to $150 for (1-2 bedrooms), and slightly higher for unique properties and single family homes. I don't want to compete with the lawyers, realtors, appraisers and software, my goal is financial education and consumer empowerment. My personal sessions are conducted as workshops.

Good luck with those property tax appeals. Less than a month to go.

Property tax posts
Property Tax Appeal… Questions to Ask Your Expert, or Yourself
Hoboken Property Taxes Due (Feb 2011)
Property Taxes Going Up or Down? (Oct '10)
Appeals... the Next Steps (May '10)

Property Tax Appeal… Questions to Ask Your Expert, or Yourself

Every tax appeals season, owners are inundated by mailings and postings from professionals offering their “expertise.” The mailings are loaded with seriously personal data--your name, your address, how much your house is worth in the eyes of the tax authorities, how much it SHOULD be worth, and how much in taxes you could be saving. The companies sending them vary from appraisers, to realtors and real estate lawyers who advertise their knowledge of the market and charge $500 to 30% contingency. In the mix are also software companies, who sell their specialized software for $50-100 a pop. Finally, there are other individuals who have successfully won multiple appeals who charge up to $250. Who, if anyone, should you hire?

The answer is not the same for everyone.

My first advice is to know yourself. Do you know how these form letter mailings are generated? Are you proficient in excel? If you can sort and mine through thousands of lines of data, there is a good chance you can appeal your taxes yourself. If you are familiar with your neighborhood, and know the details of some properties that might be comparable to yours, and you have good negotiation skills, you have a good shot of standing your ground at the hearing, and winning.

On the other hand, if you are a person who is not proficient in excel, or who is not a numbers person, you would benefit from using a professional to appeal your taxes. I don't mean this in a negative way. In fact, I want to encourage you to appeal your taxes. You will likely not only come up with a more robust tax appeal by using an expert, but you will also sleep more soundly for the several months your appeal will be in process. While it would tough for you to do much homework by yourself (beyond knowing what a few houses in the neighborhood sold for), you can still screen your professional by asking them a handful of questions on how they value your and comparable properties.

If you are in between, that is, you have the excel and research skills, but not much time or confidence, you can take this quiz to see if you are up for the task.

• What is the value of your property?
• Should your taxes be lower because your neighbor, whose house is exactly like yours, pays lower taxes?
• Say you live in a high rise building in Apt 5C (5^th floor). Apartment 10C sold for $500K. What is the value of your property based on this comparable?
• Your upstairs condo sold last year. It is the same square footage as yours, but it has a fireplace and a deck, but your doesn’t. It is a comparable?
• A condo across the street from yours with similar square footage and number of rooms as yours sold last year. However, the building has 50 condos, an elevator and a doorman. Your building has 5 units, no doorman or elevator. Are they comparable?
• A condo in your building sold for $500K. However, it comes with a parking space but yours doesn’t. Will the assessor know and how will you adjust for this?
• You live on Willow Ave. Jackson St. is less than a mile away, but you have seen a few condos there sold for significantly less. Are they good comps?
• A comparably sized condo sold in your building for $10. Can you use that sale to bring down your valuation?
• Your upstairs neighbor’s unit is exactly like yours. It sold last month for $750K. Is that a valid comparable for your tax appeal?
• You appealed your taxes last year, and got a partial settlement. You think your value can be reduced by 5-10% more. Should you try again?

If you know the answers to these questions, good for you! You are ready to appeal your own taxes. If you don’t know these answers, ask these questions to the expert you are about to engage. You will get a good sense of whether he or she will be able to provide you with a strong tax appeal.

As always, don’t sign any contracts until you are sure you are satisfied with the expert. It is ok to say you need time to think things over, or even compare with another expert.

This year, I am offering my consulting services for tax appeals. I do not, and cannot, compete with professional appraisal software that costs upwards of $1200. However, I believe many tax appeals don’t need specialized software to generate an acceptable valuation, especially if the property owner is knowledgeable about his or her property. My goal here is not to make a lot of money, or start a business dedicated to doing tax appeals. It is to use my extensive experience of comparable valuation (I am a Certified Financial Analyst—CFA) to educate and empower owners to do their appeals themselves. Please feel free to write to me for more info.

Other property tax related articles:
Hoboken Property Taxes Due (Feb 2011)
Property Taxes Going Up or Down? (Oct '10)
Appeals... the Next Steps (May '10)

Scoring a Deal on a Tempurpedic Mattress

Folks who have bought or shopped for Tempurpedic mattresses already know... while other mattresses go on sale (up to 50%) from time to time, Tempurpedic's prices are inflexible. Other than the fabled (and probably fictional) online retailers who offer price cuts (and are then chastised by the company), the most you can usually get is a free pillow or bed frame, worth $80-100.

I was determined to score a deal for my son's mattress. Tempurpedic's website had a list of approved dealers, including specialty mattress retailers such as Sleepy's and Sunrise Mattress, furniture stores such as Raymour & Flanigan, and other retailers such as Macy's and Brookstone. Raymour & Flanigan and Macy's did not allow an online purchase.

I went with Brookstone. While Macy's and Sleepy's offered to throw in the pillows (I already had enough pillows), Brookstone was giving a free $200 gift card for purchasing a set. I was looking for a cash deal, and this was the closest I could get to cash.

Brookstone was also one of the few retailers that allowed a cash-back through Ebates (5%), Citi Thank You (6%), Chase Rewards Mall (6%) etc. However, Citi and Chase excluded Tempur-pedic purchases, but Ebates did not have any such restrictions. So I took the plunge. 

$275 in savings on a Tempur-pedic mattress set isn't bad!

Truth in Numbers: Viridian Energy

In July 2010, I had written a blog “How Can I Lower my Electricity Bill.” 

One of the steps that I had taken to lower my bill was switching from the default utility company (PSE&G) to a third party provider. I had chosen Viridian, partly because they have a flexible plan with no commitments, very low customer complaints, and a floating rate that was lower than PSE&G despite being greener (20% wind energy derived). They were also donating a small amount to a charity I am affiliated with.

I estimated, based on my consumption patterns, that I would save $75 annually, although only about $25 in savings would be coming in the winter months. As noted in the blog, savings in my first bill, received in October (without the 10% off promotion) were about $5. The rate difference, $0.0125, or over 10%, was as advertised three months prior.

However, in the past few months, the Viridian rate has been only 1% lower than PSE&G. My cumulative savings are only $8. Is this a market driven phenomenon, or was I falling for a bait-and-switch?

There is good news and bad news. Good news is, Viridian's rate differences are not just lesser for me, they are lesser in general. In fact, the company's website now has historical rate comparisons for many states and state utilities, including NJ, MD, CT and PA (they recently entered the NY market.) The charts look very similar to mine—a huge difference through fall 2010, followed by a convergence in rates. So the company itself is reputable and treating me fairly.

The above links are from Viridian's website. You can continue to use them to monitor how the company is performing versus PSE&G and other utilities.

Viridian NJ Rate comparison

The Department of Energy does not provide recent data for retail electricity prices (latest data is through November), but the trend sure is higher. My guess is, since coal and natural gas (from which over 70% of electricity is derived) prices are trending up, electricity market prices are up as well. This increases the cost of companies like Viridian. However, utilities like PSE&G, which are a 3-year smoothed average, are still climbing down their price charts. So, market forces are at work here. Which is the bad news.

Am I slightly disappointed with my meager savings? Sure. However, I am glad on two fronts: firstly, I am still saving a few cents each month. Secondly, the electricity I consume is a 20% green, renewable product, and that does put my mind a little more at ease. I have so far never had to speak to a Viridian rep, which is a great thing because I have not noticed any change in the electricity I get in my home. My bill is also the same one I get from PSE&G. Even my auto-debit is unchanged.

Bottomline: If someone asked me today if I would recommend Viridian, I would say if savings is all you care about, then they may be too minor, so don't bother. However, if you are keen on using a greener electricity product, and save a little green along the way, then switching is the way to go.

Hoboken Property Taxes Due

Don't forget your Hoboken property taxes are due on Feb 10. You will not receive a new bill for this or the May taxes. Just use the voucher from your November bill.

For those who successfully appealed their taxes in 2010, you will see a credit on your voucher and a lower amount due. Enjoy!

For those lucky few who reduced their taxes by more than 25%, you had a credit balance in the 4Q bill. Please note that this amount will be mailed as a refund check at the end of February (yup, City Hall is finally getting to it). You will need to pay what it says on your voucher.

Finally, the property tax appeal season has started. If you haven't appealed your property taxes in the past few years since the real estate bubble burst, I highly recommend it. Especially since the taxes are further going up! The deadline for receipt of your appeal is April 1. If you are excel savvy, you can do the appeal yourself (perhaps with some help). The form you need is online.

You will need 5 comparable sales that help you determine the market value of your property. Here is what the Hudson County tax board says, "In order to determine the taxable value of your property, you must demonstrate what the market value of your property was as of October 1 of the preceding (pretax) year."

To read more about the appeals process, visit the Hudson County Tax board website. My earlier blogs also discuss the process and its outcomes.

May 2010 Blog: Property Tax Appeal--The Next Steps
October 2010: Is My Property Tax Going Up or Down?
March 2010 Blog: Beyond Penny Pinching

Good luck!


Consulting services

Is My Property Tax Going UP or DOWN??

He said, she said. Depending on whether the governor is speaking, or your mayor, your property taxes are either going up or down. Which one? My new blog will cut out all the spin, and keep it simple.

Bottomline, your property taxes ARE going UP. By how much? 10-15%!
We have to wait and see.

Here are two tables, with a lot of numbers. Table on the right is from the recent 4Q10 tax bill, the other is from 4Q09. The 1st column tells you what % of your property tax goes to Hudson County, to Schools, and to your Municipality (Hoboken, Jersey City etc). Hudson County tax board sets the county tax and your municipality sets its own tax. Column 2 shows what the rate actually is. A quick glance will tell you all numbers in Column 2 INCREASED in 2010, and the overall tax rate went from 4.489% to 4.745%.

	2010 4Q bill				2009 4Q bill
	% Alloc (Col 1)	Rate % (Col 2)			% Alloc (Col 1)	Rate % (Col 2)
County Tax	31.70%	1.504%		County Tax	30.20%	1.356%
School Tax	25.27%	1.199%		School Tax	26.20%	1.176%
Muni Tax	43.03%	2.042%		Muni Tax	43.60%	1.957%
	100.00%	4.745%			100.00%	4.489%

There is another component of the puzzle, director's ratio, which is determined by the Hudson County. According to the Hudson County tax board, the Hoboken director's ratio for 2011 is 29.63% (up from 27.16%) and Jersey City is 29.43% (from 26.75%).


How is property tax calculated?

Property tax = Assessed Value x Tax Rate
Assessed Value = Market value x Director's ratio
So Property tax = Market value x Director's ratio x Tax Rate.


OK, by this time, you have realized, things are not looking good. Director's ratio and Tax rate are both higher now (or in future) than it was before.

Is everyone's taxes going down as promised? NO!!


The municipality's mayor can only control 43% of your tax bill. If we are to believe the recent press release of 5% tax decrease, you are still looking at a less than 2.5% cut in your tax bill all things equal. But all things are not equal.

The following table is based on home value of $500K.

		Home Value	Tax Rate	Director's Ratio	Actual Annual Tax
a	2011	500,000	4.562%	29.63%	6,759
b	2011	500,000	4.745%	29.63%	7,030
c	2010	500,000	4.489%	29.63%	6,650
	2010	500,000	4.489%	27.16%	6,096

Say your house sells for $500K. In 2010, you would have paid $6096 in taxes.

Scenario C: We already know the Hudson County tax board has raised the director's ratio for 2011. Based on last year's tax rate, that is a $554 increase.
Scenario B: What if we used the new director's ratio and the tax rate that is on the 4Q10 Hoboken tax bill? Then its a double whammy... and your taxes increase by $934.
Scenario A: But our mayor promised a 5% tax decrease. Ok, but the municipality can't control the county and school taxes, and if we factor in the 5% tax decrease from 2009 (i.e. 95% of 1.957%), we STILL get a tax INCREASE of $663.

Based on these scenarios, I estimate Hoboken property taxes are going up by 10-15%. I don't know when, and whether things will change, but I will be budgeting some extra cash to pay my bills next year.

What else can you do about it? As has been said again and again, you can only appeal your assessment, not your taxes. So appeal your assessed value. Since market prices are still low, this is a good year to win.

Remember, if you hire a law firm or realtor to do this, make sure you get someone you trust. Read your contract. Many will offer a low-ball assessment (to make sure they get something of the contingency), but you can't walk away and do it on your own (or hire someone better).

Good luck. Deadline for appeal in Hudson County is April 1.

Hudson County Tax Board
Hoboken Mayor Press Release

Based on positive feedback, this year I will be offering my consulting services that will help you appeal your own taxes. In 2010, I successfully lowered my taxes by  30% (I have a credit in my 4Q bill as a result). Please drop me an email at dalia.tole@gmail.com if you want more details.