Homeownership means you no longer pay monthly rent for the roof over your head. When you leave, you can sell it to recoup the purchase price and earn any profit that you may have accumulated through your appreciation in value.
But don’t kid yourself. Homeownership comes with a slew of disadvantages, responsibilities, and downright headaches. So before going any further, consider whether your lifestyle and finances make home buying a smart move for you.
Except in a roaring real estate market, it usually doesn’t make sense to buy a home you’ll stay for less than three or four years, because the cost of the process of buying and selling your property means that you could lose money from your equity. On the other hand, you will not pay capital gain taxes if you’re in the property for at least of 2 years.
One key question is whether it costs more, on average, to rent or own in your area. The rule of thumb is that if you pay 33% in rent than you would for owning including the monthly mortgage, property taxes, and any homeowner’s fees, then it’s smarter to own a home then renting it.
As always, get your finances in order before committing to buy a home, and stay informed of all the options, alternatives and programs that will fit your needs.
Get help, and call a Realtor…Call me 714-963-7462. Leading your way home!
Spring’ season gains are good news for Housing Market. New home sales spiked by nearly 20 percent year-over-year in March up to about 481,000, according to a report from HUD and the U.S. Census Bureau. It was the highest level the market has experienced since 2008.
Existing home sales also jumped in March, by 6.1 percent, the largest monthly increase since December 2010, according to the National Association of Realtors.
The NAR Pending Homes Sales Index increased by 11.1 percent year-over-year in March and has been gaining momentum hitting into its highest level in nearly two years.
Fannie Mae and Freddie Mac announced today a moratorium on evictions for single-family foreclosed homes for the holiday season.
The GSEs will not be enforcing evictions from December 17, 2014, until January 2, 2015, for single-family homes that have been foreclosed on, meaning that families living in those homes will be able to continue to live there during that two-week period.
Freddie Mac’s suspension of evictions will apply not just to foreclosed occupied single-family homes, but to 2-4 unit properties that have Freddie Mac owned or guaranteed mortgages, according to the today’s announcement.
This announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move.
However, there are more things than can be done to improve the life of families that have faced foreclosure. Let’s help these families to keep Alive the Dream of Homeownership. Yes! It is possible.