Posted On: August 30th, 2018 3:52PM
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: July 20th, 2018 1:38PM
Real Estate Advice: Rent or Buy a Home?
Americans have always dreamt of owning a home of their own, believing that the investment offers them both security and financial growth. The recent turmoil within the property market has once again sparked the rent vs. buy debate.
As a REALTOR®, I continue to see the pros and cons of homeownership vs renting every day. Here’s some food for thought if you are grappling with this decision in your life.
The determination of which solution best suits your pocket will depend on several factors:
When should you opt to rent?
Bear in mind that you will have regular increases in rental over the years and that you will not be able to make any structural changes to the property. When you initially move in you will have to pay a large security deposit.
When should you opt to buy?
Home owners have watched the value of their homes increase steadily over the years in most areas of the US. The costs involved in purchasing your own home are approximately 1% of the purchase price and the cost of yearly maintenance is also estimated to be at 1% of the purchase price. When buying, you will have to make a down payment toward the mortgage which is usually between 5-20% and you will only be eligible to pay capital gains tax on its resale if you make a profit of $250 000 or more.
The decision to purchase or rent is entirely up to you and your needs. It’s a good idea to compare the figures on a price-to-rent ratio tool. Use this tool then give me a call to discuss your specific housing situation, https://www.realtor.com/mortgage/tools/rent-or-buy-calculator.
Posted On: June 27th, 2018 2:01AM
Thinking of buying your first (or next) home? Add visiting open houses to your ‘to-do’ list. They are a great way to learn more about an area’s amenities, and the homes in that area. I have hosted many an open house in my years as a REALTOR®. Let me share with you some tips to making the most of your visit.
As a selling agent, I believe in the benefit of holding a home open. As a buyer’s agent, I provide tips like these and more to my clients so together we can find their perfect match in a home.
Happy to visit anytime you are ready to talk real estate.
Posted On: May 21st, 2018 1:42AM
The housing market has proven its resilience over the years. A decade ago it had hit rock bottom with prices falling to historical lows. This housing crash is now a distant memory as prices have steadily increased over the last five years.
With a strengthening economy, rising employment figures and low interest rates buyers are flooding the market that has too few homes to sell. This low inventory has many causes and includes: homeowners who prefer to renovate rather than move, baby boomers who have decided not to downgrade, decreased development of new homes, distressed properties converted by investors into rentals and millennial buyers purchasing their first homes.
There are sellers who are driven to sell by the tax changes which will be implemented in the 2018 tax year. They are trying to stay within the deductible tax limit on their mortgage interest and in areas with lower property taxes.
If you are looking for a quick sale in this seller’s market, then keep the following in mind:
• Spring and early summer is an optimal time to sell
• Consult with your agent to ensure that you price your home correctly; an overpriced home can stagnate on the market
• A CMA (Comparative Market Analysis) is the best way to find the true worth of your home and how to best market it
• Even though there is a demand for homes remain practical about what your home will sell for, according to your area
• Tackle any touch ups and make sure that your home is tidy
• Stage your home to make it appealing to prospective buyers
I offer thorough valuation estimates, strong marketing strategies, and a keen eye for the local home-selling climate. Think of me as your trusted REALTOR® for your next home sale.
Posted On: April 18th, 2018 1:37AM
Pricing your home correctly is the key to a timely home sale. Price too high, you get no offers. Price too low, and you leave money on the table.
I use the following criteria to arrive at a viable target selling price for your home.
If you are thinking about selling, please call me and I will do a thorough home valuation, complete with a visit to your home and diligence when researching comparable sales in your area. I always discuss the reasoning behind my comparative market analysis.