There are many clear financial benefits to owning a home: increasing equity, building net worth, growing appreciation, and more. If you’re a renter, it’s never too early to make a plan for how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater stability, savings, and predictability.
1. You Won’t Always Have a Monthly Housing Payment According to a recent article by the National Association of Realtors (NAR): “If you’ve been a lifelong renter, this may sound like a foreign concept, but believe it or not, one day you won’t have a monthly housing payment. Unlike renting, you will eventually pay off your mortgage and your monthly payments will be funding other (possibly more fun) things.” As a homeowner, someday you can eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs will begin to work for you as forced savings, coming in the form of equity. As you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless. 2. Homeownership Is a Tax Break One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same piece states: “Both the interest and property tax portion of your mortgage is a tax deduction. As long as the balance of your mortgage is less than the total price of your home, the interest is 100% deductible on your tax return.” Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return. 3. Monthly Housing Costs Are Predictable A third item noted in the article is how monthly costs become more predictable with homeownership: “As a homeowner, your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a long period of time, unlike the unpredictability of renting.” With a mortgage, you can keep your monthly housing costs steady and predictable. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet. Bottom Line If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, reach out to a local real estate professional to determine if buying a home sooner rather than later is right for you. SOURCE KCM #FirstTimeHomeBuyers #RentVSBuy #SimardRealtyGroup #joineXpRealty
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For Sale! 24 Meetinghouse Rd, Granby CT @ $444k!
"Now is your chance to call Meetinghouse home! This impeccable Colonial set on a cul-de-sac of fine homes welcomes you with a captivating wrap around porch complete with mahogany & exterior fans. Inside natural light shines in on the spacious rooms & gleaming hardwood floors. A great home for entertaining, the floor plan flows conveniently from room to room. The heart of the home, an updated eat-in-kitchen, features a center island, granite tops, tiled backsplash, a pantry, gas stove & hood, stainless appliances & plenty of cabinet space. The 1st floor also has the dining room, a sitting room/den, Pottery Barn decor, an updated half bathroom, laundry room, mudroom, & another staircase leading to a large bonus room above the garage." Continue reading property description and see more photos here: https://24meetinghou.thebestlisting.com/ #24MeetinghouseRd #Granby #3DVirtualTour #SellingCT #SimardRealtyGroup #eXpRealty Some Highlights:
SOURCE KCM #ForBuyers #FirstTimeHomeBuyers #SimardRealtyGroup #eXpRealty “Love is a symbol of eternity. It wipes out all sense of time, destroying all memory of a beginning and all fear of an end.”
Happy Valentines Day! It’s hard to listen to today’s news without hearing about the uncertainty surrounding global markets, the spread of the coronavirus, and tensions in the Middle East, just to name a few. These concerns have caused some to question their investment plans going forward. As an example, in Vanguard’s Global Outlook for 2020, the fund explains, “Slowing global growth and elevated uncertainty create a fragile backdrop for markets in 2020 and beyond.” Is there a silver lining to this cloud of doubt? Some worry this could cause concern for the U.S. housing market. The uncertainty, however, may actually mean good news for real estate. Mark Fleming, Chief Economist at First American, discussed the situation in a recent report, “Global events and uncertainty…impact the U.S. economy, and more specifically, the U.S. housing market…U.S. bonds, backed by the full faith and credit of the U.S. government, are widely considered the safest investments in the world. When global investors sense increased uncertainty, there is a ‘flight to safety’ in U.S. Treasury bonds, which causes their price to go up, and their yield to go down.” Last week, in a HousingWire article, Kathleen Howley reaffirmed Fleming’s point, “The death toll from the coronavirus already has passed Severe Acute Respiratory Syndrome, or SARS, that bruised the world’s economy in 2003…That’s making investors around the world anxious, and when they get anxious, they tend to sell off stocks and seek the safe haven of U.S. bonds. An increase in competition for bonds means investors, including the people who buy mortgage-backed bonds, have to take lower yields. That translates into lower mortgage rates.” The yield from treasury bonds is the rate investors receive when they purchase the bond. Historically, when the treasury rate moves up or down, the 30-year mortgage rate follows. Here’s a powerful graph showing the relationship between the two over the last 48 years: How might concerns about global challenges impact the housing market in 2020? Fleming explains,
“Even a small change in the 10-year Treasury due to increased uncertainty, let’s say a slight drop to 1.6 percent, would imply a 30-year, fixed mortgage rate as low as 3.3 percent. Assuming no change in household income, that would mean a house-buying power gain of $21,000, a five percent increase.” Bottom Line For a multitude of reasons, 2020 could be a challenging year. It seems, however, real estate will do just fine. As Fleming concluded in his report: “Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.” SOURCE KCM #BuyingMyths #BuyerGuides #ForBuyers #SimardRealtyGroup #eXpRealty The success of the U.S. residential real estate market, like any other market, is determined by supply and demand. This means we need to look at how many potential purchasers are in the market versus the number of houses that are available to buy. With early 2020 housing data now rolling in, it’s quite evident there are two big stories impacting this year’s residential real estate market: 1. Buyer demand is already extremely strong 2. Housing supply is at a historically low level Demand ShowingTime is a firm that compiles data from property showings scheduled across the country. The latest ShowingTime Showing Index reveals how showings have increased in each of the country’s four regions for five months in a row. Supply Move.com also just released information indicating that the number of homes currently for sale has declined rapidly and now sits at the lowest level in almost a decade. They explained, “National housing inventory declined 13.6 percent in January, the steepest year-over-year decrease in more than 4 years, pushing the supply of for sale homes in the U.S. to its lowest level since realtor.com began tracking the data in 2012.” In response to these numbers, Danielle Hale, Chief Economist at realtor.com, said, “Homebuyers took advantage of low mortgage rates and stable listing prices to drive sales higher at the end of 2019, further depleting the already limited inventory of homes for sale. With fewer homes coming up for sale, we’ve hit another new low of for sale-listings in January.” The decrease in inventory impacted every price range, too. Here’s a graph showing the data released by move.com: Bottom Line
Since there’s a historic shortage of homes for sale, putting your home on the market today could drive an excellent price and give you additional negotiating leverage when selling your house. Reach out to a local real estate professional to determine if listing your house now is your best move. SOURCE KCM #ForSellers #HousingMarketUpdate #SimardRealtyGroup #eXpRealty Regardless of the lack of inventory on the market, the U.S. homeownership rate has climbed to a 6-year high. The United States Census Bureau reported that it increased to 65.1% in the fourth quarter of 2019, representing the highest level in the past six years. See the graph below: This increase does not come as a surprise. According to realtor.com, “The largest cohort of the millennial generation turns 30-years-old in 2020 and they are hitting the housing market in full force. At the end of the fourth quarter of 2019, millennials made up the largest generational segment of homebuyers, growing their share of home purchase mortgages to 48 percent.” With so many Millennials entering a homebuying phase of life and getting into the market, the Millennial Report also explains, “Homeownership is an even bigger goal for younger generations. Of those with savings, 41 percent of Gen Z and 40 percent of younger millennials are saving to buy a home.” Today’s low interest rates are providing a break to new homeowners too, regardless of generation, making homeownership more desirable and achievable at the same time. Freddie Mac explains, “The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.” The increase in homeownership rate was also represented by race and ethnicity of the householders. HousingWire explains, “The homeownership rate for black Americans in 2019’s fourth quarter rose to 44%, a seven-year high, increasing from the record low it reached in 2019’s second quarter. The rate for Hispanic Americans was 48.1%, a two-year high, the Census data showed…The rate for white Americans was 73.7%, an eight-year high.” See the graph below: Bottom LineIf you’re considering buying a home this year, reach out to a local real estate professional to set a plan that will help you get one step closer to achieving your dream.
SOURCE KCM #Demographics #FirstTimeHomeBuyers #HousingMarketUpdate #SimardRealtyGroup #eXpRealty
Think owning a home can make you happier? It sure can! Let's connect to see if homeownership can brighten your day.
#TopGranbyRealtor #StephenSimard #ExpRealty #GranbyRealEstate #GranbyConnecticut #FindyourGranbyhome #Newhomesforsale #SimardRealtyGroup #Granbyhomesforsale #JoinExpRealty #Simsburyhomes Even though there’s a big buyer demand for homes in today’s low inventory market, it doesn’t mean you should price your home as high as the sky when you’re ready to sell. Here’s why making sure you price it right is key to driving the best price for the sale.
If you’ve ever watched the show “The Price Is Right,” you know the only way to win the game is to be the one to correctly guess the price of the item up for bid without going over. That means your guess must be just slightly under the retail price. When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually increases the number of buyers who will see your home in their search process. Why? When potential buyers look at your listing and see a great price for a fantastic home, they’re probably going to want to take a closer look. This means more buyers are going to be excited about your house and more apt to make an offer. When this happens, you’re more likely to set up a scenario with multiple offers, potential bidding wars, and the ability to drive a higher final sale price. At the end of the day, even when inventory is tight, pricing it right – or pricing it to sell immediately – makes a big difference. Here’s the other thing: homeowners who make the mistake of overpricing their homes will eventually have to lower the prices anyway after they sit on the market for an extended period of time. This leaves buyers wondering if the price drops were caused by something wrong with these homes when in reality, nothing was wrong, the initial prices were just too high. Bottom Line If you’re thinking about selling your home this year, make sure you have a real estate professional on your side to help you properly price your home and maximize demand from the start. SOURCE KCM #ForSellers #Pricing #SimardRealtyGroup #eXpRealty Some Highlights:
SOURCE KCM #ForBuyers #Infographics #SimardRealtyGroup #eXpRealty |
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