Jan 27, 2015 | Home Buyer Tips
Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks. There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.
Build Equity
Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.
Save On Your Taxes
When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.
The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.
Put Your Personal Touch On Things
As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.
Renting a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.
Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you’re in currently, turn to a real estate professional for assistance.
Jan 13, 2015 | Home Buyer Tips
Are you ready to make that leap from living at home or renting to owning a home of your own? While everyone moves at their own pace, here are some signs that you can use to determine if it is time to own your own home. Let’s take a look at some of the reasons you can use to justify your decision.
Are You Sticking Around?
If you plan on moving soon for a job or think that you won’t be in town much longer, it may be better to rent. However, if you are thinking about living in the same town or within the same county for years to come, it is time to put down roots.
The stability that comes with home ownership may make you more prepared for a marriage and/or a family if that is something that you want. This stability may make you more attractive if you are single and searching for a long-term relationship.
Do You Have a Steady Job?
Those who have a steady job and know that they have a stable salary may want to make the move to home ownership. As long as there aren’t any other major debts eating into your income, you can probably handle a mortgage and other costs associated with home ownership.
The equity that you build in your home can help you build wealth for the future if and when you want to retire. Your home may also make a great rental property in the future, which can help you diversify your portfolio and keep you solvent for years to come.
You Are Spending More Time Watching Television Shows Related to Home Ownership
You may have caught yourself recently watching shows revolving around people or couples who are looking for homes. You may also be watching programs dedicated to giving tips as to how you can upgrade your home. If you watch these shows frequently, it may be a sign that you are ready to move out on your own and take on the exciting challenge of being a homeowner.
Are you ready to be a homeowner in the near future? Only you can say for sure if it is time to make that leap. However, those who are looking for a long-term housing solution may be ready to make that move. For more information, it may be worthwhile to talk to a real estate agent today.
Dec 17, 2014 | Home Buyer Tips
Every owner of condominium property automatically becomes a member of a homeowners association, otherwise referred to a “HOA” throughout the United States or a “Strata” in Canada. With that membership come certain rights and responsibilities. The primary right that the owner has is to vote at HOA meetings and elect board members. Responsibilities include payment of condo fees and assessments, compliance with association by-laws and rules, and maintaining a condo unit in conformity with those by-laws and rules.
Let’s take a quick look at various other terms you may hear about from your new HOA.
Declaration of Condominium and By-Laws
The declaration of condominium establishes the existence of a condominium property. It gives the precise location of the property through a legal description and describes each individual unit in the development along with the various common elements.
Individual Units
Ownership of an individual condominium unit is defined by the declaration of condominium and ordinarily consists of the interior walls and everything within the interior walls of a dwelling unit. Anything outside of that unit is usually considered to be a common element, such as the entryway, the swimming pool, the tennis courts, the parking lots and more.
Common Elements
This is property both inside and outside of buildings that the individual condo owner has an undivided interest in. It would include any common hallways, garages, parking lots, recreational facilities and open space on the property described by the declaration of condominium. If for example, there are 100 units in a condominium development, each individual unit has an undivided one percent interest in the common elements.
Running a Homeowners Association
Homeowners associations tend to operate like a small democracy. When matters are brought up at meetings to be voted on, each condo unit has one vote. Each HOA has an elected board of directors. They’ll meet once a month to decide on association business and make decisions on behalf of the HOA. The unit owners are permitted to be present at these meetings.
Owners’ Responsibilities Inside Their Units
Owners are responsible for any repairs within the walls of their dwelling unit. They might be responsible for damage to other units from leaks or flooding from a burst pipe. Depending on the by-laws, the unit owner might be responsible for maintenance or repairs of any pipes or electrical wires running behind their walls. The association is responsible for anything on the common elements.
Don’t let the purchase of your next home get derailed. If you’re thinking of getting started on condo shopping, your trusted, reputable and highly experienced real estate professional will guide you through your condominium purchase.
Dec 10, 2014 | Home Buyer Tips
Does your home feel like it’s starting to burst at the seams? Many homeowners across the country can relate to this feeling having bought a home only to run out of space due to a growing family or for other reasons. Let’s take a quick look at a few questions that will help you to determine whether buying a new home or expanding your current home is the best choice when you’re in need of some extra space.
Why Are You in Need of More Space?
The first question you’ll need to answer is…”why?” Are you running out of space because you’ve decided to start a family and have another child on the way? Or perhaps you’ve decided to start a business out of your home and you’ve outgrown the small room you had set aside as your office? Whatever the case, a major renovation or a move to a new home are both major decisions and ones that shouldn’t be made lightly. Sit down with your family and consider why you need more space and what you would do with a larger home if you had one.
How Much Space Do You Need?
“How much space” is another consideration that you’ll need to make in order to come to the best decision between expansion and buying a new home. If you find that your needs are perfectly suited except for that missing bedroom you may want to undergo a renovation. Conversely, if you find that you could use at least 2 or 3 new rooms and some extra room in the garage, you may want to start shopping for a new home.
Note that expanding your home to add an extra bedroom or to finish the basement will provide a limited amount of additional space – space which may end up feeling constrained later if your family or needs continue to grow. If you’re thinking bigger over the long term, you’ll likely be better served in finding a larger home that has extra room that you can grow into.
Other Factors for Consideration
If you’re thinking about expanding your current home you’ll want to consider how this will impact the other rooms in the house. Are you going to feel the need to renovate every room once that new bedroom is added? If so, is renovating a wise investment or should you simply move on to a newer home?
Living in a more spacious home is a liberating experience that your entire family will enjoy. Contact your local real estate agent today to learn more about buying larger properties and to view available real estate opportunities in your area.
Dec 9, 2014 | Home Buyer Tips
Size matters when you are buying a new home. Whether you plan to expand your family, need more room for your stuff, or are concerned with resale value, you want to get the most space for your money. Also, if you want to add a feel of luxury to your home, one of the best ways to do it is to create open spaces rather than cramming all your furniture in rooms so tiny you can barely walk around without knocking something over.
Traditionally speaking, the larger a home is, the more it costs. If there are two newly built houses side by side in a subdivision, the bigger one is likely to cost more. However, there are some tricks to finding spacious houses that are affordable.
Choose Emerging Neighborhoods
Houses in this year’s trending neighborhood are at their peak prices. Clever buyers look for neighborhoods that are in the process of being gentrified, buying at the bottom rather than the top of the market, to get more house for their money.
Fix It Up
Houses in perfect condition, that show well, sell for a premium. If you want to get more house for your money, choose something that needs a bit of TLC. A house that has pink walls and orange shag carpet might appear just too ugly to consider when you first view it, but it might just need a few coats of paint and some new carpet to become a spacious dream home.
Do Some Finishing
Unfinished areas such as attics and basements can be finished to create additional living spaces. The basement could become a family room and the attic an extra bedroom or study. An unfinished space can become the extra bathroom you need to make morning more manageable.
Consider an Addition
Contractors can add rooms to a house. If you have a large lot, you can build an extra wing. With a one story ranch house, it may be possible to raise the roof and add a second story.
The more stuff you have, the smaller your home appears. Reduce clutter and invest in smaller condo size furniture to give even the smallest home the appearance of spaciousness. Call an experienced real estate professional if you want to find your spacious luxury home at a bargain-basement price.
Dec 3, 2014 | Home Buyer Tips
Are you about to buy a house or condo for the first time? Congratulations! Owning your own piece of real estate is a liberating experience and one that will provide you with the foundation to build your personal wealth and equity. Once you own your own home you’ll be responsible for a variety of new costs, including property taxes which are assessed by your local government to pay for municipal services. In this blog post we’ll share how property taxes work and what you can expect to pay when you buy your new home.
It All Begins with a Local Property Tax Assessment
As mentioned above, local governments assess property taxes as a means for paying for police officers, fire fighting services, road maintenance and the other various costs that come with running a town or city. Whether you’re buying a house, a townhouse or a condo, the property that your home sits on is inside of an area known as an “assessment area”. When the local government determines what your local tax levy or tax rate will be, they will assess your home based on the real estate market value of similar homes in the area. You can multiply your tax rate by the assessed value of your home to determine how much you’ll owe in property tax.
Property Taxes as Part of Your Closing Costs
When you close on your new home you’ll have to pay property taxes, and your real estate agent will help you to understand how much these taxes will be and how they will be paid. In most cities and counties you’ll pay a pro-rated amount of property tax that covers the time span from the date you purchase the home until the end of the year, after which time you’ll be paying your full assessed rate.
Don’t Forget Your Overall Tax Picture
Finally, don’t forget that property taxes can be factored in to the rest of your overall tax picture. Check with your accountant or another financial professional to determine whether or not you can write your property taxes off against your income tax to save some additional money. There are numerous tax benefits to owning a home, so it’s best to start using them from day one.
As with all other taxes, property taxes are a fact of life that every homeowner faces. When you’re ready to buy a new home and to learn more about how property taxes will affect your purchase, contact your local real estate agent today.
