Personal responsibility played a very big part in creating the financial meltdown mess of the last couple of years. Many homeowners failed to understand the consequences of exotic loans, and the unscrupulous people in the real estate profession took advantage of that ignorance.

Would so many people have bought homes they couldn’t afford if they had a better grasp of the consequences of resetting interest rates and negative amortization?  Was it the best approach for building financial security? My guess is, no.  I make it a point to refer my clients to reputable lenders within my network. Also, I try to give those clients as much information personally and reiterate that advice on Real Estate Insight, so that they can make informed financial decisions.

A recent Real Estate Insight guest has taken informed decision making to an even higher level.  Robert Bailey, author of The Billionaires Little Black Book, The Ultimate Secret Behind Sustainable Wealth spoke with us about the theory behind his new book.  Pointing out that you have a better chance of becoming a billionaire than you do winning the lottery, Rob has taken the knowledge he has garnered from years in financial management and developed a seven point strategy  for managing personal and professional business decisions, investment decisions, and life choices.

Stressing the importance of a team approach to your finances, Bailey devotes a chapter to how a trusted Real Estate advisor fits into this plan.  It is a quick read, but filled with great information.  So, check it out and maybe you will be the next billionaire.

The guest on my radio show this past Sunday was my good friend Krista Watterworth, interior designer and host of HGTV’s “Splurge and Save.” Krista has lent her style and expertise on our show in the past, and you may remember her other HGTV series including “Save My Bath,” “You Should Live Here,” and “The Big Reveal.”

Splurge and Save is a half hour design makeover series that shows homeowners how to get the biggest bang for their buck. Using her design secrets, Krista shows how to pull together any room, how to build the right budget for any room, and, of course, how to stretch every dollar.

Krista uses all the pieces of a room – like furniture, rugs, window shades, or accent tables – to get high style without the high cost. Using one or two really nice pieces as a focal point, and complementing them with more budget friendly options is a great way to stretch a dollar when designing. Putting a designer chair next to a knock-off sofa, or repainting an old end table and topping it off with a $500 vase are some of her techniques.

And while she never did share the passion for cooking, which her big Italian influenced family had growing up, she did learn from watching them that attention to detail, balance of color and flavors, and careful selection of ingredients were the secret to all great recipes. These are the sensibilities that Krista brings to her website, RoomRecipes.com, a great blogging community about practical home design.

Check out “Splurge and Save” on HGTV and visit her website, you will get some great tips for the budget minded homeowner.

Last week on Real Estate Insight, Sally sat down with Rich Epstein and Steve Tetzner to discuss the First-Time Home Buyer Tax Credit and Energy related tax credits. The conversation was both educational and entertaining. Listen to the Podcast commercial-free below:

Real Estate Insight can be heard live Sunday mornings 10:00am -11:00am on WHJJ Radio 920AM.

 First-Time Home Buyer Tax Credit Podcast: Play Now | Play in Popup | Download

Did you know that there are 30 Islands in Narragansett Bay? That was my trivia question this week, and it got me thinking about all of the wonderful things that the Narragansett Bay offers our state.  The Bay’s three largest islands are Aquidneck (Newport), Conanicut (Jamestown), and Prudence, but there are also 30 smaller islands dotting the Bay.

The Bay provides a quality of life that attracts businesses, industries and more than 12 million visitors each year, generating thousands of jobs and billions of dollars for the regional economy. For commercial fishermen, it is their livelihood, producing about 8 million pounds of quahogs annually, with a value of $6 million. Millions of people in Rhode Island and Massachusetts live, work and play around the Bay. More than 100,000 fishermen and over 32,000 recreational boats cruise the bay each year.

And this got me to thinking about my friend Jonathan Stone at Save The Bay. Founded in 1970, Save The Bay and its supporter’s work to protect, restore, and explore Narragansett Bay and its watershed. They have enjoyed remarkable success restoring the habitats of over 60 species of fish and shellfish, 200 bird species, and countless seals, dolphins and sea turtles.

As part of the new long-range plan, Save The Bay is addressing Massachusetts-based pollution with the Massachusetts Project. The project is led by Ira Magaziner and staffed by volunteers, their objective is to research pollution problems in the Blackstone River region and the Mount Hope Bay, Taunton River, and Fall River region.

Save the Bay is one of the great organizations in Rhode Island that really impact all of our residents, and is largely a grass roots organization and relies on volunteers. Save The Bay volunteers come from all ages and backgrounds yet all share a passion for the  Bay. To find out how you can help save the bay, contact Stephany at 401-272-3540 – x130

The big news last week was the signing of the $789 Economic Stimulus Package. The original $15,000 credit has been scaled back to $8,000, but drops the repayment feature for buyers who hold on to their property for at least three years. Here are some of the other highlights in the bill that pertain to housing:

FHA and conforming loan limits:
The 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

Foreclosure mitigation and neighborhood stabilization:
Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

Rental assistance:
Up to $1.5 billion for short-term rental assistance and other aid for families during the economic crisis.

Transportation infrastructure:
Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.

Rural housing development:
Increased funding for the Rural Housing Service direct and guaranteed loan programs.

Energy efficient housing:
Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.

According to The National Association of Realtors, eliminating the repayment provision on the first-time homebuyer tax credit could drive more than 200,000 additional home sales, which will help stabilize home values. The National Association of Home Builders had estimated a $15,000 tax break for all homebuyers would have generated nearly 500,000 home sales.

Listen to the entire show featuring the Stimulus Package commercial-free:

 How will the Stimulus Package Affect Homeowners?: Play Now | Play in Popup | Download