Tag Archive for homeownership

Homebuyers Round-Up: Four Reasons To Buy Now, Maintenance Tips You Need to Know, Pros and Cons of a Fixer Upper

 

The Homebuyer’s Round-Up is a curated list of home buying, home maintenance and related stories.

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KEEPING CURRENT MATTERS
4 Reasons To Buy A Home This Fall!

Keeping Current Matters lists the four reasons to buy a home this fall. 1. Annual home prices will continue to rise. 2. Market rates will increase over the next 12 months. 3. Whether paying rent or paying to own a home, you’re creating equity; thus, it’s better to create it for yourself rather than a landlord. 4. Depending on where you are in life and your goals, it could simply be the best time to buy.

AMERICAN HOME SHIELD
Maintenance Tips Every New Homeowner Needs to Know

Becoming a homeowner is one of the biggest decisions that many will make in their lives. Knowing what preventative home maintenance tasks to address can help a new homeowner make the decision a less daunting one. According to American Home Shield, some steps to take include locating your main water shut off valve, finding your circuit breaker box, checking your foundation and calling 811 before you dig.

HOUSINGBUZZ
Pros and Cons of Buying a Fixer Upper

Purchasing a fixer upper has its pros and cons. Housing Buzz Blog suggests the following pros and cons to consider if you aren’t sure if a fixer upper is right for you. Some pros to buying a fixer upper include lower monthly payments and tax savings. Some cons include multiple repairs and going over budget.

HUFFPOST | Vicky Law
Six Renovation Tips That Can Help Reduce the Cost of Your Home Maintenance

Early home renovation is highly cost effective when it’s properly planned. HuffPost provides six tips to help homeowners reduce maintenance costs. Among the list are to only seek professional opinions for major renovations, plan renovations between January and April for better discounts, and buy supplies at a thrift market or auction.

REALTOR.COM | Clare Trapasso
Why It’s a Better Time for Buyers on a Budget to Purchase a Home

We’re now past the most competitive season for home buying. According to Realtor.com, the median price of an existing home dropped for the second month in a row from $263,300 to $253,000. Home prices typically drop in the fall since most families purchase houses in the summer so that they can settle before the school year.

 

 

 

To Buy Or Not To Buy?

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The decision to buy a home is a complex one with many factors to consider, some of which may differ from person to person. But whether you’re a recent graduate, newlywed, single or single again, married with children, or an empty nester, there are common factors we can all take into account. Don’t just roll those dice!

There are many benefits to home ownership. For starters, it’s a great long-term investment. Although you’re unlikely to see significant appreciation in price in the short term, an increase in value is almost certain over time. But remember: real estate is not a “liquid” investment. Should you find yourself wanting or needing to sell, it could take some time to find a buyer and close the sale, depending on market conditions at the time. Owning a home also offers a number of tax benefits. Interest and closing costs paid on a mortgage as well as property taxes are deductible if you itemize deductions on your federal income tax return.

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In addition to financial benefits, home ownership offers other advantages. Many people experience a sense of pride and satisfaction in owning their own home. For some, it gives a sense of stability, of “setting down roots.” And when you own your home, you enjoy the freedom to improve your property according to your own wants and needs, which usually isn’t possible when renting.

With the great power of ownership, however, comes great responsibility. Maintenance and upkeep tasks that you may be accustomed to your landlord handling will fall squarely on your shoulders. In addition to the time it takes to care for your home properly, you’re likely to encounter both routine and unexpected expenses. It is important to anticipate these occurrences and prepare for them.

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How do you know if you’re ready to buy a home? Do your research. Make a plan. Prepare a budget. Here are some questions to consider in making your decision:

1. How long do you plan to live in your next home? Does your job or lifestyle dictate frequent moves? Remember that home values increase more over the long term, so if you’re moving more often than every few years, you may not see significant gain when you sell your home. You will, however, gain equity in your home as you pay down your mortgage, while rent money is gone for good.

2. How healthy are your finances? Do you have money for a down payment, closing costs, insurance, taxes, and a buffer for unexpected expenses that can occur when you own a home? If not, talk with a mortgage lender to learn what steps you should take to put yourself in the best situation to purchase a home. You can use Guidance Realty Homes’ free online tools to help make your decision, including our Rent or Buy Calculator, our Affordability Calculator, or our home valuation tool.

3. What is the real estate market doing in your area? How are mortgage rates? What kinds of homes are available in your price range? Are they located in areas that suit your lifestyle? If you are not able to buy a home as nice as the ones you could rent, consider your willingness to live in a less desirable environment for a time. The equity you’ll gain can help you upgrade sooner than you could if you continued renting and tried to save the additional money. A licensed Guidance Realty Homes agent can provide you with valuable market information and help you evaluate your options.