Re: It's the Economy Stupid

Just ran across this article, at Kitchens.com. It's a synopsis of a discussion by a group of economists at the 2009 International Builders Show.

One paragraph caught my eye:

• Getting a home equity line of credit (HELOC) for a remodel is tough, Nothaft (Frank E. Nothaft, chief economist of Freddie Mac) said, because banks don’t want to offer what amounts to a second mortgage. Depending on when you bought your home, you may want to consider a cash-out refinance of your first mortgage instead.

This says it all for homeowners who plan to remodel but don't have all the cash they need to accomplish the task.

Peggy

New GE Compact Fluorescent Light Bulb

This just in from from LightNOW.

GE has created a compact fluorescent light bulb (CFL) shaped exactly like an incandescent light bulb. The first one is 15 watts (60 watt equivalent).

They did it by covering the spiral with a glass bulb. They say it was a real "ship in a bottle" trick.

Here's a picture:

















They are already available at Target, and expected at Ace Hardware this month. Broader availability is expected by Earth Day (April 22, 2009).

Between April and June 2009, GE plans to introduce 9W and 20W versions as 40W and 75W equivalents, respectively. The 20W CFL will have a slightly taller profile that mirrors a standard incandescent 3-way bulb. A 100W equivalent, meanwhile, could be introduced as early as 2010.

Peggy

Home Expos Closing

Home Depot announced yesterday that it's upscale Home Expo stores will be closed across the country.

I am sad for all the people who will be losing their jobs.

Since Home Depot will still be around, customers should have no concern about their pending orders.

However, Home Expo is by far not the only entity on shaky ground in the current environment. We can expect to see lots of other retail outlets in the home improvement supplies business to go under in the coming months.

My advice to consumers looking to purchase products that require hefty down payments is to look before you leap. Question the financial stability of the companies where you plan to do business. Question pressure to buy today and prices that seem too good to be true. Better to go with a company that will still be there when your ordered products arrive than one that will take your deposit into bankruptcy.

Be careful too about contractors. Many of them will go under as well. You don't want to be the consumer that has your contractor fail on your job. Ask for bank references and check them.

Only the strong and savvy will survive this downturn. They will survive because they socked away a nest egg to help them through the bad times. Even credit lines that might have saved businesses have been cut off. Cash rules! Ask them to "Show you the money"!

Peggy

Re: Home Renovations on Sale

Money Magazine and CNN Money.com recently published an article by Donna Rosato, Money Magazine senior writer entitled Home renovations on sale

"Materials costs are plunging, and contractors are begging for work. Suddenly that long-postponed remodel is looking like a smart idea."

A lot of the things the article states are true. No doubt about it. But I have differing opinions on how well homeowners might fare if they embark on a bargain-hunting kitchen remodel in the near future.

While they may save a bit on some materials and be able to buy bargain priced products from companies on the brink of, or in, bankruptcy; most of the most expensive products for mid to high end kitchens have just INCREASED in price.

I have done some surveys of cabinet and appliance dealers in the San Francisco Bay Area, and the manufacturers of their products have all done their usual first of the year price increases.

I have also called some quality remodeling contractors, told them about the article, and asked how they are handling the slowdown. None said they were prepared to cut their prices to deal with it.

Instead, they are likely to take an extended vacation, work on their own homes or properties, or even retire.

The last time we had a recession that affected remodeling in the Bay Area was 1989-1994. Our recession hit here later than the rest of the country and lasted longer.

There was very little work to be had and lots of competition from builders, who were also out of work and coming in from the Central Valley in droves.

I went back to school and learned how to use AutoCAD and run a computer, in 1991, during the worst of that period. Certainly better than twiddling my thumbs waiting for new customers to come into the cabinet department of the company that employed me.

Many of the best remodeling contractors retired, and lots of new blood was introduced as younger contractors filled the vacuum. The experienced contractors never really dropped their prices, they were just replaced by inexperienced contractors.

We are far from that situation now. High-end remodeling is still going strong and keeping vendors above water.

But there are signs we could be heading in that direction: A few local vendors are going out of business. The middle class (my clientele) has pretty much stopped remodeling as they watch their 401Ks and home values fall.

On the other hand, there are a whole bunch of newly minted homeowners buying foreclosed properties at the new lower market prices, most of which need remodeling. Those new homeowners also have equity, because they had to pay substantial down payments to buy with credit frozen the way it has been.

That bodes well for the future of remodeling in the Bay Area.

We'll see what happens next...Tomorrow Obama is inaugurated.

Peggy

Dramatic Kitchen Oil Fire Video

This just in from my friend Alexander.

It bears posting - Most residential fires occur in the kitchen - on the stovetop.

Be safe.

Peggy

KITCHEN OIL FIRE......... I never realized that a wet dish cloth can be a one size fits all lid to cover a fire in a pan!

This is a dramatic video (30-second, very short) about how to deal with a common kitchen fire...Oil in a frying pan. Read the following introduction, then watch the show... It's a real eye-opener!!

At the Fire Fighting Training school they would demonstrate this with a deep fat fryer set on the fire field. An instructor would don a fire suit and using an 8 oz. cup at the end of a 10 foot pole, toss water onto the grease fire. The results got the attention of the students.

The water, being heavier than oil, sinks to the bottom where it instantly becomes heated. The explosive force of the steam blows the burning oil up and out.

On the open field, it became a thirty foot high fireball that resembled a nuclear blast. Inside the confines of a kitchen, the fire ball hits the ceiling and fills the entire room.

Also, do not throw sugar or flour on a grease fire. One cup creates the explosive force of two sticks of dynamite.

Best Compact Fluorescent Light Bulbs

The folks over at the Environmental Working Group are hopping mad over the way the Energy Star label has been turned into something less than perceived by the public.

Seems like the label is on a lot of products that aren't as efficient or environmentally friendly as they should be when compared to the best in their class.

They are asking us to join in sending a message to Energy Star asking them to lower the amount of mercury permitted in Energy Star rated compact fluorescent lamps (CFLs).

They have done their own research and named the best CFL manufacturers, sizes available, mercury included, and estimated life:

Earthmate Mini-Size Bulbs (13, 15, 20, & 23 Watt) about 1 mg 10,000 hours
Litetronics Neolite (10, 13, 15, 20, & 23 Watt) about 1 mg 10,000 hours
Sylvania Micro-Mini (13, 20, & 23 Watts) less than 1.5 mg 12,000 hours
Sylvania DURA-ONE (reflector bulbs) less than 1.8 mg 15,000 hours
Feit Ecobulb less than 2.5 mg 8-10,000 hours
MaxLite 1.2-2.5 mg 10,000 hours
Philips with Alto 1.23-2.7 mg 8-10,000 hours

You can print out a handy shopping cheat-sheet at:

EWG’s Guide to Light Bulbs

Thanks EWG!

Peggy