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Last year my husband and I bought my in-laws’ home down in Southern California, and so we have been homeowners for 7.5 months now officially.   We have a really nice family living there now and for the most part things have been going smoothly, but there have been a few headaches that we’ve never encountered before.

First, the neighbors next door has completely neglected their backyard.  This isn’t exactly something we could fix because we can’t just jump over their fence, pluck out all the weeds, and clean their green pool.   I have contacted the public health department regarding their pool because you could see the green and brown slosh from SPACE via satellite photos and it can be a breeding ground for mosquitoes.  I’m not sure if it got cleaned up yet but they did get a ticket from the county.  They also have a couple psycho little dogs that barks day and night because they are probably not being fed.

Next, this weekend our home caretakers called us and told us that the water heater broke and it would cost over $1000 to replace it.   The water heater is over 20 years old so I guess it was its time.  It sprung a leak and damaged the garage’s wall a little bit, too.  We had the money to replace it in our emergency fund, but it was still an unpleasant surprise.  So I started researching a bit into our insurance policy and I read on the internet that this sort of thing is usually covered by home warranty policies.

I do vaguely remember that in escrow last year my inlaws purchased a one year warranty for us, so it is definitely still valid now, but I was at work so I couldn’t dig through my mountain of home-related paperwork to see what company held the policy.  So I called the realtor that took care of the transaction and she told me right away what the warranty company was and the plan number.

I called the warranty company and our insurance company to see what we could do about it, and the warranty company said they would cover the water heater replacement and the insurance company said they would cover water damage on the drywall.  The warranty company sent a plumber within 4 hours of my call and replaced the water heater, and they also checked out the drywall and said it is drying enough that it doesn’t need to be replaced.  Both my hubby and I were very relieved because we didn’t want the family living there to be without hot water for a very long time.  They have been showering in cold water for a couple days now.

It seems that my husband and I are the type of people who are unlucky (or lucky) enough to get the most out of insurances and warranties, so we are considering extending the home warranty when it expires considering that this time it did save us a bunch of money.  So I guess the lesson here is to be aware what your home warranty and insurance covers and does not cover.  If I hadn’t remembered that we had a warranty then we would have paid for the repair out of pocket.  Also, another obvious point is that owning a home is a lot more trouble than just renting.

I definitely do not regret buying the home with the hubby, but I guess things like these make me realize how big of a responsibility it is.    I think we are pretty both realistic about the fact that we will not make money from the house and we simply bought it to keep it in the family.  I do see the house as a backup plan for possible high inflation because we are , and there is a possibility that we would move down there.  So as stupid as it sounds, there is definitely a little bit of joy in knowing that after fifteen or so years we will own a piece of real estate free and clear.

Anyway, we are happy the current problem is fixed, and now we are more aware of what to do the next time something like this happens.  I think when we were young our parents took care of a lot of things like these with their homes, and we did not even know or care that much.  Live and learn I guess.

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So before I forget I should write about the trip to see the baby on Wednesday.  My husband made me wake up more than a hour early and we headed  to the hospital after we took showers.  We walked through the little farmer’s market in the parking lot and got to the ultrasound department in the basement and sat down to wait.  The hubby gave me a bottle of water to drink because the doctor recommended that I should have a full bladder.

There was a bit of commotion as some paramedics wheeled in an old man, and then the radiologist called me into an examination room.   The hubby got a chair behind the doctor and I had to lie down on a bed, and unfortunately my head was behind the monitor so I missed most of the action.     All I could do was to watch the hubby’s face and he had this cute look that was a mix of amazement and amusement.  Apparently our baby was moving all over the place and it was hard for the radiologist to do her work.  My OBGyn ordered a regular anatomy assessment so the radiologist had to take pictures of almost every part of the baby’s body at specific angles.  Since the baby moved so much it was hard for her to capture the specific photos.

While the radiologist clicked and moved the ultrasound probe she kept on mumbling random comments like, “this baby is an absolute meatball”.  She also said, “this is the jumpiest kid I have ever seen, what did you eat this morning????”  I only had a bottle of water.

She also said to my hubby, “I don’t want your wife to get jealous now, you are having all the fun watching this kid here.”  The hubby later told me that he felt quite a bit of glee at that.  He thinks it is unfair that I get to feel the baby move all the time now and he still has not felt it.

So after 45 minutes of this she said, “mom’s bladder is getting a bit too full” and she allowed me to go to the bathroom.  She took quite a few more pictures after that and then turned the monitor over to let me see the baby.  It was actually quite interesting since I could see every little bone in the baby’s hands and spine.  It was also pushing against the walls quite a bit.  The heart was also very clear with all of its chambers and jumped very quickly.  I only got to look at it for about a minute.

Finally when all the pictures were taken the hubby asked, “do you know what the gender is?”

The radiologist said, ” oh yeah!”  Then she put the probe to show  an image that was right between the baby’s legs.

I saw it immediately and said, “well, it looks like a boy”, and she said, “yup you are right!”  The hubby was a bit disappointed, but I was happy that my guess was right.

Then I said to him, “well, it is your Y chromosome that made this boy!”

He said, “yeah I know, I messed up.  This means we will have another one!”

We took home a few pictures the radiologist printed out for us.  Several of them were profile pictures and one was of the baby’s face.  I thought that he really looked like the hubby.  He has the hubby’s nose and the bottom lip is shaped like the hubby’s, too.  Some people have said that I am nuts and it is too early to tell, though.   Later on,  we showed the picture to our moms and they could not find where the face was and the hubby had to mark notes on Flickr.   The hubby also said that he counted the little fingers on the baby’s hand and it looked good.  The radiologist told us that everything looked fine, and it seems that the ultrasound machine gave fairly good estimates on the baby’s size in relation to his stage of development.

Yesterday we told my hubby’s grandpa that the radiologist called the baby a “meatball”, and he laughed and said that should be the baby’s name.  I asked him what “meatball” is in Tagalog, and he said, “bolabola”.  I think that is a cute nickname actually.  Every Filipino kid has a nickname and now  the hubby’s family seems to be stuck on the “meatball” idea.   The hubby says that would encourage our kid to be overweight, though.

Anyway, we might go to a baby picture place in a couple months and take some 3D ultrasound photos of the baby.   By then the face would be better formed and we will see more clearly who he looks like.

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The hubby and I will be finding out the gender of our baby on Wednesday morning.  According to this , I will be having a boy, but the hubby really wants a girl.  He made a bet with me that if it is a girl I will buy him a boardgame, and if it is a boy he will buy me some salted caramels that I have been craving.  Anyway, we have actually had this discussion before about how much it would cost to raise a son versus  how much it would cost to raise a daughter.  Here are some of our observations and other people’s research.

First of all, lets start with my family.  If you have been following this blog you’d know that I am an only child due to the only child policy in China so my parents had no one to spend money on besides me.  However, I do have a male cousin that was born just three days earlier than me.  He is really the closest relation I have to a brother and we played together almost every weekend when we were kids.  I came to the United States when I was nine and my cousin is still currently in China.  In China it is pretty much given that middle class parents would spend a lot more money on a boy due to education and wedding expenses.  Even though single female children are also prized in the cities they do not come with the wedding costs.  Middle and upper class Chinese parents of a son are expected to provide the wedding banquet, gifts, and in most cases a home for their son when they get married.  A girl just has to find a nice family to marry into, but urban families do spend quite a bit of money on the education of female children these days that rival their educational expenditure on a male child.  My family has met quite a few singleton Chinese females who are studying in the United States with almost of all of their parents’ money.  But overall,  in my family I would say that a male child is more expensive due to the Chinese tradition of providing a lot more for a son.  However, I did get married in America and the custom here is that the bride’s family pays for a wedding, and my parents were very generous, but the percentage of money they spent on me compared to their income probably pales to what my aunt and uncle have spent on my cousin.  In China parents really sacrifice everything for their only children, and the burden on parents who have a son is definitely greater than those who have a daughter.

Now the hubby’s family has one boy and one girl and both were raised in America.  From my point of view his parents spent a similar amount of money on both of them.  Both of them went to private schools for their entire sixteen years of education and the hubby’s parents provided money or equity towards real estate purchases for both of them.  I’m not too sure about the smaller expenditures during their childhood, but it seems that both kids were quite expensive regardless of gender. So in the hubby’s family it seems that gender did not matter.  I am sure that one of them cost more than the other if you added up every single cost line by line, but for the most part I think the big expenses were similar and the hubby’s parents sacrificed a lot for both of them.

According to last year, boys actually cost more than girls.  This was based on a survey conducted by a company called GE Money on 2000 British parents. Supposedly this is due to the fact that boys want more expensive toys like electronics and girls want cheaper toys.  We do see this a bit in the hubby’s younger cousins.  A girl cousin is happy with small things like lotions and nail polish but her brother usually loves getting video games and gaming consoles, which are a lot more expensive.  Boy’s clothing is also more expensive because there is less competition.  This is true of men’s and women’s clothes, too.  If you haven’t noticed, the women’s or girl’s departments are usually bigger at stores, and with more brands competing the prices are cheaper.  I think another factor in why boys would cost more than girls is that boys are more assertive in what they want.  When you ask a boy what they want for their birthday or Christmas they can usually tell you, but a girl can be less direct or less decisive.  So as a result, parents are more likely to buy things for boys because boys  made their wishes known.

Anyway, if we have a boy we might not have to spend extra money on  electronic gadgets because his daddy would have all the latest toys already.  We have already talked about a plan to rent out my hubby’s video game consoles to our kid.  For example, we can exchange gaming time for chores done.  That would be a while in the future, but the hubby is excited at the prospect of playing board and video games with our kid already.  We are definitely prepared for the kid financially regardless of the gender, but it is interesting to think that raising a child of one gender could cost less than raising one of  the other gender.

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There was a mini panic in the financial markets recently when the .  The 30 year bond’s yield is now over 4.5%.  This is due to the fact that the central bank has been trying to push long term rates down by announcing that it is buying an additional $1 trillion of U.S. agency debt.  It seems like bond buyers are no longer taking this manipulation of yields, and they are demanding the interest on their investments.  What does this mean for little guys like you and me?

First of all, I am glad that this is happening because I am just sick of all the efforts to push down mortgage rates  when there is no good reason to push it down.  Higher mortgage rates will encourage people to borrow less money, and push down housing prices.  That is not a bad thing on both counts. People will buy houses when it is affordable and reasonable.  Many people are buying right now because housing prices have come down dramatically, and not because of the historically low  mortgage rate. New homebuyers may not be able to lock down mortgages under 5% any longer, but the dip in prices to come may just make up the difference. The only negative is for those who are waiting to refinance, because those below 5% rates are now gone.

Higher yields on treasuries may also make those in charge of the  U.S. government think a little bit before they issue more debt. They need to know that they cannot make every bond buyer pay extremely low rates and this endless borrowing needs to be controlled. If the U.S. government spent and borrowed less, then our taxes may be lower.  However, these higher yields will just mean that Americans will be paying more in interest for years to come with their tax revenues.  This is unfortunate, but bond buyers are investors who should not have to accept rates that do not match the risk of the investment.  For what it is worth, I think right now the yield on 10 and 30 year treasuries is still fairly low so the U.S. is still getting a fairly good deal.

Some other effects I am hopeful about is that perhaps short term rates will follow on the upward trend and savings rates will go up accordingly.  The worst scenario is that inflation is going up AND savings yields are still abysmal, and in a way that is sort of happening now.  Inflation isn’t tremendous this year, but I am noticing some small increases in gas and food prices.  Additionally, wage growth is fairly small all over the board due to the recession.

Anyway, the that its holdings are safe by pledging that the U.S. will try to reduce its budget deficit and eliminate the market manipulations by the government.  I personally think that China’s worries are justified because actions speak louder than words.  If the U.S. is really trying to reduce its budget deficit then it shouldn’t pledge more and more borrowing and spending.   The fact that Geithner had to make such a trip to reassure Chinese leaders shows that the U.S. government is feeling insecure about its debt situation and that does not inspire confidence in the bond market. China really has no obligation to buy trillions of U.S. treasuries and China is free to invest its reserves however it wants.  If China’s reluctance to lend encourages the US to cut its borrowing and spending then it is a good thing for  United State citizens in the long run.

In conclusion, the stock markets are showing signs of recovery, so this will probably push bond yields higher since there will probably be less demand for bonds.   This is good news for everyone who has money in the stock market.  It is reasonable that bond yields are going up, and it is nice to see some market forces push back against the heavy hand of government intervention.

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The Golden States is not so glittery right now.  It seems that the special election yesterday went just as I expected, the propositions to extend taxes, borrow from the lottery, and divert funds were all rejected.  The only thing that passed was 1F, which restricts raises on state legislators, and this would not save much money at all.  So now what?  Many are saying that California will need a federal bailout since the state is facing a $21 billion deficit.  Here are some of my thoughts on the issue.

My feelings on a federal bailout is somewhat mixed.  First of all, I feel that Californians deserve some payback from the federal government because for years we have been paying more taxes than what we get back.  As I have written before, the Tax Foundation estimates   This has been going on for many years, and California’s GDP is by far the largest in the Union, so perhaps California deserves to be bailed out due to its contributions to this nation.

Of course, if the bailout happens due to the reason I cited above, then other states like New York, Massachusetts, and New Jersey may just line up for a bailout as well since they have also been getting a lot less federal money back than what they put in.  All the other states would of course be quite furious.  The bailout may also make California more dependent on the federal government, and that
is never a good thing.

One big reason why I would be against such a bailout is that California’s main problem comes down to the simple fact that the entire system is living beyond its means and throwing more money at it is not the solution.  The legislators do not seem to know how to budget for the future.  It seems that the budgets are based on an assumption that things are always going up, and as a result programs are established in the boom years and never cut in the lean years.  Californian voters also hate to cut any services they already have and also hate taxes so the balance between income and spending becomes out of whack.

Someone at the top has to look at the state programs right now line by line and
cut anything that looks redundant and useless. The state’s credit ratings are not exactly stellar so the only choice is to cut things as soon as possible.  I actually support Governor Schwartzenegger’s effort to cut services and state employees right now because there is really no other choice.  In lean times like these individual families live without luxuries such as eating out or even birthday presents, and the state needs to do the same.
~

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