THINKING OF SELLING? NOW MAY BE THE TIME. The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in
Five Signs You Are Ready To Buy REAL ESTATE
Dated: December 8 2016
There are a number of great reasons to own and invest in real estate. As with anything of value, an honest evaluation of the risks involved should definitely be conducted before making an investment. Whether for personal use or for profit, the ever evolving real estate market has certainly taught us that ownership is a "much involved" opportunity.
Home ownership in America according to the Census Bureau is down to 65% from 69% in 2004. Although tighter lending standards, economic uncertainty, and in many cities high home prices are partly to blame, many would-be buyers are staying out the game simply from lack of industry savvy. However, with mortgage rates lower than they have been in years and sure to rise soon...it would only be opportunistic to take advantage of the options available and take on home ownership sooner than later.
Well here are five questions to ask yourself before you take the leap!
1) Will I be here for a while?
2) Are my finances in order?
3) What are the hidden expenses and what happens AFTER taxes?
If your finances are in good standing and you think you're ready to rock and roll in real estate, the next step is to get a realistic estimate of what you can expect to spend, and how that breaks down monthly. Your real estate agent as well as your lender are ideal for giving you the most accurate assessment.
Now there are great tax advantages to home ownership. If you itemize your deductions – as many homeowners do – your mortgage interest and property taxes are deductible. Down the road when you sell, moreover, you can realize up to $250,000 in deductions (double that if you’re married) before you owe capital gains tax. Be sure to consult a tax professional for concise and accurate information on how your investment with affect you financially based on your local legislation.
There are many additional costs of homeownership that new buyers tend to overlook . A solid and consistent budget of both money and time will be required to address routine maintenance costs, as well as big-ticket items, such as leaking pipes or a roof that may need repair. You have to be prepared for the occasional pressures that will inevitably come with your new purchase.
4) What’s happening in my market?
We're always hearing economists talk about real estate in national terms, but the market varies greatly from one city to the next, even from one neighborhood to the next. Although home prices in most U.S. cities are still relatively affordable, some cities have seen their home prices bounce back to the big boom prices before the big crash. Also to consider in many cities, the rental market is as competitive, if not more competitive.
Nationally, half of all renters are spending more than 30% of their income on housing, according to the Joint Center of Housing Studies of Harvard University, up from 38% of renters in 2000. For renters, an improving economy is a double edged sword...as their incomes rise so does their rent.
So one obvious benefit of owning, assuming you plan to stay put for a while and lock in a fixed-rate mortgage, your costs should remain relatively consistent from year to year; and in time will go down. For many buyers, that’s all the reason they need to get off the fence and into the housing market.
5) OWN IT!!!
Out of all the great reasons to own real estate I've found that pure sense of "OWING IT" is everyone's favorite...Knowing that your hard work and efforts attributed to making this major thing happen is most rewarding! Preparing for such a purchase as a home is no easy task and to pull it off is a major accomplishment. Yes there are financial opportunities and potential to earn profits, but the ability to say I OWN IT is priceless!!!
If you or anyone you know is weighing home ownership as an option, I hope this helps! There are numerous benefits to making such a major investment but at the end of the day you have to determine what elements of ownership matter to you the most. There are endless opportunities in and around your area so do your research and don't miss out.
Don't hesitate to connect with our experienced and professional team for all of your real estate and investment needs.
The Mark Quinichett Group
4624 Wisconsin Ave. NW
Washington, DC 20016
In addition to being a licensed real estate salesperson in MD and DC, Andrea is a Credit Repair Agent, certified Notary Signing Agent (underwriter appointed) and Investor. +Get connected to resour....
Latest Blog Posts
Buying your next home can be a daunting task, especially if it’s your first home. It’s exciting but full of complexities.While it’s likely to be the largest financial transaction you