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!
In addition to the # 1 rule in Real Estate “Location, Location, Location” there are some other suggestions you can benefit from, to get top dollar for your home!
The strategy varies by neighborhood and market conditions, but staging a house to appeal to the maximum number of buyers can make difference in how fast the home sells.
If you have a limited budget, here are some tips that can make your house to sell for a top dollar:
Add color to you landscape by either replacing flower beds or potted flowers, along with fresh sod.
Replacing light fixtures and plumbing fixtures will give your home a modern touch for a minimal investment.
Consider removing popcorn ceilings; however you need to be careful because popcorn ceilings of pre-1979 homes are likely to contain asbestos, and you need someone licensed to remove it.
Remove window treatments, unless they are current and high-end. That cuts the risk of turning off would-be buyers who don’t share your taste, and uncovered windows that will let more light into the rooms.
If you’re using your dining or a bedroom as an office for example, turn it back to their original use.
Replace dirty or worn carpet, you’re better off removing the carpet if there are hardwood floors underneath.
Uncluttered your house by packing away items that you will not use on an every day basis is a must. You want the new family to envision themselves living in the home.
A deep cleaning before you put your home on the market is a must, so everything shines.
Repaint all rooms in neutral colors. A fresh coat of paint also makes the house look newer and more modern.
With a few simple, low-cost tweaks, you can significantly enhance your house’s curb appeal. Focus on low cost improvements. Since every dollar counts, devote your time in renovations that’ll bring you a return.
Sales of previously owned homes rose in September to the highest level in a year, adding to signs that residential real estate will be a plus for the economy.
National Association of Realtors reported today in Washington that closings on home sales advanced 2.4 % to 5.17 annual rate, and purchases rose 1.9% from the same month last year before adjusting for seasonal patterns.
Why this is a great time to sell your home?
On the way, easier lending standards and faster wage gains would attract even more buyers, including those making their first entrance to homeownership.
Sales of existing single-family homes increased 2% to an annual rate of 4.56 million in September from the prior month, also the fastest pace in a year. Purchases of multifamily properties including condominiums rose 5.2% to a 610,000 pace.
Of all purchases, cash transactions accounted for about 24%, down from 33% 12 months earlier, Investors, 63% of whom paid cash 14% of the market last month, in September 2013, they accounted for 19%. And First-time buyers accounted for 29% of the market for a third month in September. Distressed sales, accounted for 10% of the total
We are aware that residential real estate market has definitely gotten better; however it has not fully recovered. There is a lot more to be done!
Existing home sales, excluding distressed sales, are the most encouraging stats at the moment. These, according to Trulia and the National Association of Realtors, were 80 percent back to normal in August.
Trulia’s Bubble Watch also showed that prices were 3.4 percent undervalued in the third quarter, which is a marked improvement over the 13.5 percent undervaluation at the worst of the housing bust. That means prices are three-fourths of the way back to normal.
Delinquency and foreclosure rates also were much improved. According to Trulia and Black Knight, the national delinquency and foreclosure rate was 74 percent back to normal in August, the same as one quarter ago and up from 56 percent one year ago. The decline in defaults and foreclosures has helped stabilize the financial system and hard-hit neighborhoods.