Posted On: August 19th, 2018 10:33PM
Owning a Home is a Good Investment
The debate about homeownership versus renting has continued over many decades and there is always a consistent winner – homeownership. Even with a continual annual rise in the prices of most average US homes, the consensus is that it is still cheaper to buy rather than to rent; with differences ranging from 20% to 50%, depending on the suburb, city or state, making for a nationwide saving of 37.7%.
To get the most benefit from homeownership, you would have to own your home for at least seven years. Of course, the cost of a mortgage would have to be at reasonable levels, like they have been for a number of years.
Building equity is one of the essential reasons for preferring to purchase over renting, and it is a sure hedge against rising inflation. For most people homeownership is the closest they will ever come to having a savings account.
Besides saving on rental inflation, owning your own place also allows you to have the upper hand on how you maintain or renovate to suit your family’s needs.
A large portion of the money saved will come from the following tax benefits*:
*Consult with your tax advisor on the above scenarios.
I am a 30+ year REALTOR® serving home buyers and sellers in the Chicagoland area. Reach out for proven expertise and representation.
Posted On: August 19th, 2018 10:26PM
Home Sale Contingency in Illinois? How it works.
There are variations in the way the home sales process works from one state to another in the US. Not all home sales are straight forward and many questions arise in the event of a Home Sale Contingency.
What is a Home Sale Contingency and how does a Home Close Contingency Differ?
From the moment a buyer makes an offer to the seller of a home and that offer is accepted, the two enter into a contract known as a purchase and sale agreement. In the agreement all the details of the transaction, including the purchase price, are mentioned. It also includes any other special conditions. These special conditions are called contingencies and they must be met.
In a Home Sale Contingency, the buyer has made an offer to purchase while still trying to sell off his current home because he doesn’t want to risk losing it.
In a Home Close Contingency, the potential buyer already has a purchase contract for his home, but is waiting to close.
How does a Home Sale Contingency work?
There is a lot to consider when a home sale contingency is involved. I will guide you through the often complex home purchase or sale with proven expertise.
Posted On: August 4th, 2018 1:40PM
For many of us homeownership is an essential part of adulthood; like earning our own money, investing it and putting down roots. Just like our parents and grandparents did before us. As a REALTOR®, I have been asked on occasion what the benefits of owning a home are.
If you are currently renting, know that while you might not have maintenance or mortgage repayments, the money you pay monthly toward rent has no ROI (Return of Investment). What you are paying in rent could be going toward owning a home and accruing equity.
As buying a home is one of the biggest financial commitments most of us will ever make, let’s consider these five benefits of homeownership:
1. Investing in our future. Most other large purchases, a car for example, will devaluate over time and even though the property market has had a few lows over the years; the national median prices of homes has gone up. Monthly payment against a mortgage reduces part of the capital of the loan so that the debt decreases as the price of the property continues to rise, allowing you to collect equity for further investment.
2. Tax benefits. The interest paid into a mortgage is tax deductible, especially in the first years when a larger amount of the monthly repayment is toward interest. Private mortgage insurance and purchases related to the home are also tax deductible.
3. No increases. With a fixed-rate mortgage you will be paying the same amount for its duration. This will never be the case when renting because of likely yearly escalations. The extra money in your budget allows for other investments.
4. Home improvements. Changes can be made to your own home according to your needs and additions and improvements increase its value. Due to equity collected over the years the financing for these alterations will be easier. When renting, most people have to move as family needs change which can be financially and emotionally draining.
5. Benefit Socially. Studies have shown that people who don’t move around a lot have less emotional stress and are more involved with their communities, establish lifelong friendships and don’t need to disrupt the schooling of the children.
Yes, I am biased as a REALTOR®, but I always counsel my clients based on their particular needs. Let’s talk soon if you are thinking about a purchase, especially if it’s your first time buying.
Posted On: July 20th, 2018 1:32PM
Moving Checklist for Home Buyers and Sellers
Moving from a home you’ve lived for any length of time can be exciting, but also stressful. Give yourself a break and minimize moving day hiccups by preparing in advance.
Two months out:
30 days out:
Two weeks out:
One week to a few days out:
My buyer and seller services are attentive, from our first conversation, to moving day, and beyond. Please reach out to me for trusted real estate representation in the Chicagoland area.
Posted On: June 28th, 2018 12:14AM
Year-round maintenance of your home is essential to keeping it neat and problem free. The correct maintenance ensures you avoid costly repairs and prevents its value from dropping. Essential maintenance tasks can most easily be done when the weather is warm.
Here are some outdoor/exterior items to address:
Even though you will be spending more time outdoors, do not neglect the interior of your home:
Thinking of making a move this summer? Let me be there every step of the way, and beyond. Let’s chat soon.