Are You Ready to Buy a Home or Should You Continue to Rent?

Are you looking for a new place to live but aren’t sure if you should buy or continue to rent?  That’s a decision that almost everyone faces at some point in their life.  Buying a house can seem like a daunting idea but there are many benefits to being a homeowner.  Owning a home can be very rewarding and a sound financial investment.  There are advantages and disadvantages that go along with being a homeowner.  Hopefully this blog post will help you with your decision.

Some questions to consider if you’re ready to be a homeowner:

Does it suit your lifestyle?

Does it make sense for you financially?

Do you plan to stay in the same place for a few years?

What does your next five-year-plan look like?

Do you want the responsibility of maintaining the home and making repairs when needed?

Is it a commitment that you’re willing to make at this time in your life?

Homeownership comes with many enticing financial and emotional advantages.  They are as follow:

Build Equity

Homes typically rise in value anywhere from 4% to 6% every year.  Even if your home doesn’t increase in value, you will be building equity by paying off your mortgage as long as your home maintains its value.  You increase your degree of ownership in your home with each payment when you have a home mortgage.  You can refinance your mortgage at more favorable rates or once you’ve paid your mortgage off entirely, you can borrow against the equity in your home.  This borrowed money can aid in funding major purchases like another home or your children’s education. 

Tax Breaks for Homeowners

Homeowners can deduct their property taxes and mortgage interest payments when they itemize their federal income taxes.  The deductions will offset the cost of your housing.  These deductions can equal huge savings, especially early on in your mortgage when interest makes up the bulk of your payments. While you might not be excited about paying property taxes on your new home, you are able to deduct them as well!

Your House Payments Will Remain Stable

If you choose a fixed-rate mortgage, your principal and interest payments will remain the same for the duration of the loan. You won’t have to worry about any increases in your monthly mortgage payment like you might when renting.  Keep in mind that your homeowner’s insurance and property taxes can change. 

You Can Settle in a Community

Once you are committed to being a homeowner, you are more likely to become better involved in your community.  You know that you will be there for years to come and a greater sense of community will help you feel even more at home.  You can get to know your neighbors, get involved in volunteer work, perhaps join a homeowners’ association, or get involved in local churches or schools. 

Potential Investment Possibilities

If you are a homeowner and you decide to move, you can choose to rent it out to generate income rather than sell it.  Covering the cost of your mortgage, or more, with rental payments can lead to success.  If you may consider this as an option, be sure to select a home that would make a potentially good rental property in the future. 

Decorate and Construct as You Please

If you want a purple kitchen or a blue bathroom, feel free! It’s your home! When you own your own home, you are free to paint, rearrange, and decorate as you please.  Unlike renting, you have the freedom to do whatever with your home, unless you are part of a homeowners’ association in which you will have not as much freedom with your home’s exterior.  If you wish to have another room, add one!

Maintenance Freedom

Living in a house enables you with the freedom of how to approach maintenance issues.  You can choose to either fix it yourself or choose your own contractor.  Keep in mind, there may be a monthly fee to pay for maintenance work covered by the association’s contractors if you live in a condo or a homeowner’s association.

Increase the Property Value with Improvements

Improvements to your home benefit the homeowner when you rent, you just get to enjoy them while living there.  When you are the owner of your home, you can increase your property value with any improvements that you make.

Develop Stability and Pride

Develop a more stable living situation as a homeowner.  It is an exciting and proud moment when you purchase a home. You gain a sense of independence and freedom.  When you are a homeowner, you have control over your home and you can do as you please with it. 

Some Homeownership disadvantages are:

Paying for Your Own Maintenance

Although you make your own maintenance decisions when it comes to your home, as a homeowner you must spend time and money keeping your home in good repair.  It is wise to set aside funds for unexpected expenses such as malfunctioning appliances, window replacements, or other repairs.

Your Home is an Illiquid Asset

In a sudden need for relocation due to a new job or a change in circumstances, you may not be able to list and sell your home as quickly as you would like or at the price point that you desire.  This is something to keep in mind as a homeowner.

Property Taxes

It is important to know that property taxes can rise, lowering the affordability of your home.  You can calculate the amount that you will pay in property taxes by taking your property’s assessment and multiplying it by the property tax rate, which is based on your jurisdiction or location.

Cash Investments

You may need use up your savings for a down payment on your home, closing costs, and other homeowner expenses.  That cash won’t be available for other investments. 

Losing Property Value

There is no guarantee that the value of your home will increase over time.

Homeowner’s Insurance

Homeowner’s insurance is mandatory if you have a mortgage payment.  As a renter, you aren’t required to have renter’s insurance but, as a homeowner, your lender requires you to insure your residence.  Typically you have to pay those insurance premiums along with your monthly mortgage payments. 

Commitment

As a homeowner, you are locked in to your property.  If you were to lose your job, you wouldn’t be able to simply and quickly downsize your home and monthly payments like you would when renting.  You still must make your mortgage payments each month otherwise your lender has th right to eventually take your home away.

Responsibility

When you own a home, you are responsible for maintenance and repairs.  When renting, landlords are responsible for maintenance and repairs but as a homeowner, that responsibility is on you.  This will cost you time and money. 

Additional Costs when Buying

There are several additional costs outside of the price tag of the house.  Some of these costs include a home inspection, bank origination fees, real estate transfer taxes, and more.

Resources:

http://www.moneycrashers.com/rent-or-buy-a-house/

http://www.zillow.com/home-buying-guide/rent-vs-buy/

http://mashable.com/2015/04/20/home-investment/#.pR6Q4S0aZqf

I'm the Realtor of the Week!

I am so honored to be featured as the Realtor of the Week by the Milwaukee Journal Sentinel in November 2015.  Thank you to all of my wonderful clients and my awesome team for helping me become the realtor that I am!  I love making my clients happy and helping them find the home of their dreams.  

Read my featured Realtor of the Week article Here

Great Ways to Volunteer and Give Back this Holiday Season

The holiday season is a wonderful time to give back to those in need.  There are countless ways to give back by volunteering your free time or making a donation of anything from money to toys or clothes.  Holidays can undoubtedly put a financial strain on your household and family but that doesn’t mean that there aren’t ways for you to still give back.  There is no better way to brighten the holiday spirit for yourself and others by making a difference in someone elses life.  Volunteering is a great way to get the entire family involved and teaching your children the importance of helping those less fortunate.  Get creative in your ideas and find your passion! Here are some great ideas for ways to give back this holiday season. 

Be a sponsor for a family in need
Help the homeless: donate warm clothes, coats, blankets, or food to homeless shelters
Serve food at a food shelter
Help to build shelter for the homeless
Hold a coat, winter clothing, or food drive
Serve food on Thanksgiving or Christmas Day
Spend time playing with and taking care of the animals in an animal shelter
Visit a senior center or a nursing home and spend time with them
Volunteer at your church
Donate blood
Donate toys for Toys for Tots or other toy drives
Send Holiday cards or gift packages to those serving in the military overseas
Hold a craft party to create bracelets, knit scarves, hats, or blankets, make bookmarks, or other crafty and kind gifts to pass out at a hospital or a nursing home
Bake holiday treats or cook a holiday dinner to take to a local fire house or police station for those working on the holidays
Gather necessary items for the winter time to hand out to the homeless such as: blankets, winter wear, chapstick, Kleenex, hand lotion, toothbrush, toothpaste, instant hand warmers, coats, snacks, etc.
Collect unused or gently used make-up, perfumes, costume jewelry, clothing, shoes, etc to donate to an abused women’s shelter
Shovel snow for an elderly or person in need for no compensation
Brew hot chocolate, coffee, or tea and pass out to the homeless or people working outside in the cold such as construction workers, mail personnel, crossing guards, police officers, etc.
Donate your time by decorating an elderly center, nursing home, or hospital with holiday décor
Sing holiday carols at an elderly home
Cook a holiday meal and box it up to distribute to families in the hospital during the holidays
Collect stuffed animals to donate to the police station for traumatized children

Some great organizations to volunteer with this holiday season include:

The Salvation Army

The American Red Cross

Habitat for Humanity

Some great websites to seek volunteer opportunities are:

Volunteer Match

MyVolunteerPage.com

Your "Finding a First Home" Checklist

 

 

01/08/2014 at 12:00 pm  •  Posted by Blog Team  •  

Buying a home can be a great investment, and many households dream of starting a family and developing memories in their first home. When it comes to shopping for a property, many first-time homebuyers may be surprised by all the options their real estate agent provides. Luckily, there are several ways prospective buyers can narrow down their home search and find a property that best meets their needs.
The simplest way prospective buyers can begin their home search is to contact a real estate agent and go through a process of elimination by creating a simple checklist that outlines what they’re looking for.

Non-negotiable features
There are a number of home features and characteristics that buyers consider “must haves” before buying a home, therefore it’s important to start with these when making a checklist. For example, home-buyers may require a certain number of bedrooms or bathrooms, prefer to own a large piece of land or refuse to live in a certain neighborhood. These non-negotiable features should be communicated to their real estate agent to ensure that they are fulfilled before individuals spend time visiting home staging events.

Negotiable features
In some cases, buyers may want to own a home that features double bathroom sinks or borders two school districts. If these factors are important to buyers, but will not necessarily prompt them to turn away from a home sale, they should also be on the list. Real estate agents will work to meet all of a buyer’s guidelines, so buyers shouldn’t leave out the little amenities that may make a house feel more like a home.

Neighborhood caveats
You know what they say… “Location, Location, Location.” Choosing the right neighborhood features is almost as important as choosing the right home features. Neighbors, school districts, crime rates, amenities, costs and activities will be a part of a homebuyer’s life for years, so it’s crucial to take these factors into consideration as well when drawing out a list of wants.
Lastly, buyers shouldn’t get discouraged if it takes some time to find the right home. Finding a house that has all the necessary features is worth the wait, and any additional quirks or home features can be altered to meet a buyer’s needs.

Budget-Friendly Fall Home Decor Ideas

Fall is filled with colorful trees and leaves, pumpkins and gourds, wool socks and knitted blankets, roaring fire places, mugs of hot apple cider, and plenty of earth tones.  What is better than having a home that encompasses all that Autumn entails?  There's no need to spend tons of money on creating Fall home decor.  Make your home warm and cozy and ready for Fall.  Here are several great ideas to spend time with your family and to turn your home into a Fall-ready haven for little to no money.

Put up a wooden coat rack to hang your light Fall jackets and sweaters

Place thick knitted or wool blankets on the couch, love seats, and window benches

Paint small pumpkins with modern designs and place in the kitchen and dining room

Put a woven basket at the front door for light scarves, leg warmers, and Fall hats

Add natural elements throughout your home such as crabapple branches, oak leaf stems, pumpkins, gourds, bowls of apples, and colorful leaves on branches

 

Put the natural element decor in vintage bottles, rustic boxes, and woven baskets

Cut and utilize tree branches for things such coasters, picture frames, pot holders, and more

Create beautiful Fall centerpieces filled with pomegranates, peartree flowers, and colorful foliage

Stack firewood in the home and cozy up beside the fireplace

Decorate your outdoors with Autumn leaf wreaths, bright orange pumpkin lined walkways, and tea light candles

Light delicious-smelling candles around the home to create a warm and happy environment.  Some great Fall scents are cinnamon spice, warm apple pie, pumpkin pie, firewood, lush berries, sugar and spice, warm vanilla bean, vanilla bourbon, crisp morning air, and many others

Warm up your screened-in porch by placing wool blankets, large plush pillows,  warm candles, and Fall foliage décor

Take citrus fruits like oranges and lemons, press cloves into them, and place in a boiling pot of water.  This is create a warm comforting scent in the air

Display small glass jars of Fall spices including whole cinnamon sticks, all-spice, cloves, whole nutmeg, vanilla beans, and others on the kitchen counter

Place small glass bowls of Fall candy and snacks like candy corn, chestnuts, hazelnuts, roasted nuts, marshmallows to be roasted, and more throughout the kitchen and family areas

Plant seasonal flowers in rustic terracotta baskets for your outside and inside décor

Create and paint rustic signs out of pieces of wood or use rustic small chalkboards around the home and at the front door that say “Welcome”, “Give Thanks”, “Family and Friends”,  “Fall”, “Happy Halloween” and other warm sayings

Take small pumpkins and paint your address number on them to display at your front door

Decorate the front of your home with tall corn stalks

Use a small red wagon as décor for your outdoors.  Fill with pumpkins, a sign, foliage, and lanterns

Add a rocking chair to your front porch, sun room, or living room.  Toss a fleece or wool blanket over the top

Hang rustic frames on the wall for décor of many uses

There are various ways to give your home a nice warm and cozy Fall feeling for very little money.  Rummage through the thrift store to find great pieces to paint, refurbish, decorate, distress, and use for your Fall home décor. Use what is already in your home, garage, and storage.  Make it a family event to brain storm ideas and create lovely Fall home décor.