It’s Tax Time: Learn How Buying a New Home Can Help to Reduce Your Tax Burden

Most people do not look forward to tax time, whether they get money back or not, but as a homeowner there are a lot of things you can do that will help to reduce your taxes and get you a refund. If you’re getting prepared to invest in a home and are wondering how it can benefit you, here are some deductions you’ll want to watch out for.

Minimizing Mortgage Interest

One of the best benefits of having a home is that you can actually deduct mortgage interest at tax time and save considerable money as a result. While the amount you receive will depend on your interest rates and the type of loan you have, this can make a significant dent in the amount of your monthly payment when all’s said and done.

Deducting Property Tax

Property tax is another fee that comes along with home ownership, and it can be a rather debilitating amount depending on where you live. While you have the ability to deduct this amount on your primary residence, you also have the option of doing this if you happen to own a vacation home. This is not only a benefit for money savings, but can be a boon for future home investment too.

Capital Gains Credit

Many people stay in a home for a few years and then invest in something larger, and the Capital Gains Exclusion is a great way to take advantage of tax-free profits on your home. While you’ll have to live in the primary residence for at least two years to take advantage of this deduction, you will not have to pay any capital gains tax up to a certain amount.

Line Of Credit Reduction

If you happen to have either a line of credit or a home equity loan, you can also deduct the interest off the amount paid for a refund on your taxes. In addition to the lower rates provided by these loans, you can also save on interest when tax time comes around, making it a considerable benefit.

Most people do not look forward to doing their taxes, but if you’re a new homeowner you may not be aware that there are many financial benefits associated with buying a home.

Student Loans vs. Down Payments: 3 Ways You Can Manage Both and Buy a New Home

The idea of paying off your student loans and buying a home at the same time can seem like an impossible feat given the impact on your Debt-to-Income (DTI) ratio. However, there are ways it’s possible to have enough funds and good enough credit to make your dream of home ownership come true a little more quickly. If you’re currently considering how to manage both, here are some options you might want to consider.

Decrease Your Debt

Lenders will be looking at your DTI ratio in order to determine whether or not you’re a solid financial bet, so before throwing yourself into the market, it can be a good idea to minimize your debt load. While this doesn’t mean paying off all of your student loans, try putting more down over a period of a few months so you have additional wiggle room. By making a budget plan that you can stick to, you’ll slowly eat away at the principal and have a little more room to invest when the time comes.

Add Another Income

You’re probably working pretty hard in your post-student life to make ends meet and pay off debt, but one of the best ways to pay off two loans is to bump up your income. Whether you decide to find something part-time on the weekend or hone one of your skills for freelance profit, a little bit of extra money each month can make a huge dent in the amount you owe in no time at all.

Consider A Starter Home

It’s entirely possible that you’ve got your eye on your ideal home, but if you’re dealing with student debt there’s a pretty good chance that the monthly payment will be unattainable. Instead of choosing a home that’s out of your league, make your dream of ownership come true by picking something that will be affordable month to month. While it might not be exactly the house you’re dreaming of, you’ll still be putting equity into something so you’ll have money to invest down the road.

It’s certainly not an easy feat to take on student loans and mortgage debt at the same time, but by improving your income and paying down as much as possible before investing, you may be able to do both at once. If you’re currently in the market for a home, contact your trusted mortgage professionals for more information.

Real Estate Investment: Three Telltale Signs You’re Not Cut Out to Be a Landlord

The idea of purchasing a property and having renters can be an exciting business venture that offers lucrative financial rewards. However, there’s a lot involved in being a successful landlord and it’s important to be aware of what’s required before making the commitment. Whether you’re investing in one rental property or five, here are some questions you should ask yourself before getting involved.

Can You Do-It-Yourself?

There’s a lot more to being a landlord than taking the rental check, and one of these things is being there for the tenant when push comes to shove. If there are issues with the heating or the fridge breaks down, you’re going to be the one who has to facilitate or complete the repair, so you’ll need to have the wherewithal to fix problems effectively. While there are many situations where a repairperson can help, having some DIY skills goes a long way towards turning a better profit.

Do You Have The Time?

Weeks and even months may go by where your tenant requires little to nothing from you, but if you own an older property or have several renters, even maintaining the place can get to be quite a bit of a chore. It can be a good expenditure to have a contractor take care of these issues, but you’ll still have to use your time to find the right person and oversee the budget. If you already have a pretty full schedule, being a landlord will add a lot more to the pile.

Can You Deal With The Risk?

It can be easy to turn a profit if you have a renter, but if you happen to own property in a vacation area or a community on a downturn, it may be more difficult to find renters consistently. There may be periods of time where tenants are scarce, and this means that you’ll have to be comfortable with financial instability in order to weather the storm. While the moneymaking months can make up for the off-season, if you doubt your ability to take on the financial risk, this may not be the right choice.

Being a landlord is a considerable responsibility that will require you to take on financial risk and serve your tenants effectively and efficiently.

Making the Grade: How to Research Local Schools Before Buying Your Next Home

There are so many things involved in moving into a new home in a different neighborhood that it can be easy to forget about the proximity of many nearby amenities. However, if you have children, the local schools available can make-or-break the decision on whether or not to invest in a house. If you’re wondering how you can find out more about the local school, let the following tips be your guide.

Take a Web-Search To SchoolMatch.com

One of the benefits of so many things being online these days is that local schools are no exception, and SchoolMatch.com is a great resource that puts this information at your fingertips. While you’ll have to pay a fee to get the details on many public and private institutions, this resource features ratings on schools throughout the country which can make it worth the price.

Contact The NAEYC

With a wealth of information on preschools, kindergartens and elementary schools located throughout the country, the National Association for the Education of Young Children is another helpful website to visit. While the organization offers informational pamphlets that can help you decide a school’s benefits, you can also call in if you want to speak with someone directly about a particular institution.

Make A Visit To The Neighborhood

While it can take a lot of time to visit the schools in the neighborhood you’re considering, this is a great way for you to get a sense of the area you’re moving to and what it affords. By taking a walk through the hallways to view the building’s upkeep and even visiting the office to talk with the Principal, you’ll be able to decide whether it’s a good fit.

Talk To An Agent

It might seem a bit strange to talk to a realtor about local schools, but real estate agents are responsible for providing a multitude of information to potential homebuyers so they have to be in the know. Whether they’re able to help you with a house or not, it’s certain they’ll have some of the basic details about your neighborhood’s educational offerings, whether it’s good or bad.

There are a variety of amenities that can improve the appeal of a new neighborhood, but good schools are a necessity when it comes to the kids.

Buying Small, Living Large: 4 Big Pros to Buying a Smaller House or Condo

Are you on the hunt for a more efficient living space? Whether you’re a first-time buyer or downsizing from a larger home, buying small can still mean living big. Let’s explore four positives to living in a smaller, more intimate house or condo.

You’re Going To Save Money

The first, most obvious and most exciting reason is that you’re going to save money. The home itself will cost less than a larger one, especially if there is less land or property included. Even better: the money you save on space can be re-invested in quality. Losing a bedroom or two but having brand-new appliances? It might be a fair trade.

It’s Much Easier To Customize

Are you excited to renovate and customize your home to suit your family’s tastes? A smaller space is going to be far easier to make changes to. And while you may think that this limits your options, that’s not the case. As long as you buy with renovations in mind, you’ll be all set.

Bear in mind that some upgrades won’t work with a smaller home. For example, you may not be able to add that large deck or patio you’ve always wanted. Before you buy a small home, make sure it suits your future vision.

Living Small Is More Energy Efficient

Yes, it’s true: living smaller means using less energy. Much of the energy we use in our homes is for heating and/or cooling our living space. The smaller the home, the less energy needed for either. Depending on where you live, that difference can mean a lot of energy — and money — saved.

Cleaning Is A Lot Less Of A Chore

The smaller the space, the less of it there is to clean. It’s as simple as that. Even if the difference in cleaning time is as short as an hour each week, it adds up. Over ten years, that small one-hour difference becomes a total of more than three weeks! So if you’d rather not spend extra weeks or months cleaning your home, a smaller space is a big plus. If you want to leave a smaller footprint, a great place to start is with a smaller new home.

Feeling ‘Priced Out’ of Your Local Market? Here’s How You Can Still Buy a Great New Home

If you’re trying to buy a new home, few things are more frustrating than a hot real estate market. When home prices are climbing fast it can feel like you’ll never be able to save enough for your down payment. In today’s post we’ll share a few ways that you can get in – even if you’re feeling priced out.

Start Smaller And Upgrade Later

If you’re a single professional or a young couple, it might be wise to start with a smaller starter home. While a townhouse or condo might not feel as large as a detached house, they are more affordable options. Starting small allows you to build equity in your home. This, plus your increased earning power as you work for longer, can open up more home options later.

Another benefit of starting small is that you’ll already have a home. If the local real estate market experiences a quick change, you won’t need to scramble. You can plan to buy a larger home – that ‘perfect’ house – when the time is right.

Bring In Family As Investors

Do you have family members who might be willing to provide a loan or financing? If so, start the conversation with them to see if they are willing to co-invest in your new home.

There are many ways to bring in family as investors when you buy. They can provide a straight loan of funds to increase your down payment. Or if they want to be less involved, they can co-sign your mortgage, which will allow you to borrow a larger amount. In many areas, a family member or investor can also be a legal co-owner of the house or the property it sits on.

Make Use Of Experienced Professionals

Finally, don’t forget to ask the local experts for more advice. Real estate agents and mortgage brokers are in-tune with the local market. They spend each day helping buyers like you with understanding their options. If you’re short on ideas, a real estate professional is a great place to start.

It can be tough to stay positive when you’re feeling priced out of the local real estate market. But with a little ingenuity and planning, you can get out of the rental market and into a great new home.

Buyer’s Remorse: 3 Things You Should Never Say When You’re Negotiating to Buy a Home

The prospect of finding the home you’ve always dreamed of can be such an exciting prospect that it’s easy to forget all about the process of negotiating. However, it’s important to keep a few things to yourself when it comes to the art of making the deal. If you’re currently searching for the right place and are preparing to sign on the dotted line, here are a few phrases it’s best to avoid.

Declaring It Your Dream Home

There’s nothing wrong with finding the ideal home and getting enthusiastic about the prospect of owning it, but it’s very important not to say too much to the homeowner or the homeowner’s agent. While it’s certainly welcome to be a polite home viewer and mention some of the features you like, giving away too much will inform the homeowner of just how much leverage they have with you. This can mean they may request a higher price since they know how interested you are.

What You’re Willing To Pay

It might seem up front and honest to declare the price range that you’re willing to spend on a home, but if a homeowner knows what your limitations are, they’ll likely push you past them. While you may be willing to pay more for a home you truly love, it’s important that you’re investing a reasonable amount into the home and not paying much over market value for your property. Instead of being too forward, keep your offer to yourself until it’s on the table.

Critiquing Their Price Point

If you’re truly interested in a home, it can be pretty difficult to realize that it’s not within your price range. However, it’s unnecessary to mention this to the buyer as it’s entirely possible that the price is comparable to other homes of a similar style in the neighborhood. After all, there’s always a chance that the home will stay on the market and drop down in value, and this may be the point at which you can get your foot in the door.

When it comes to buying a home, the process of negotiating can be fraught with stress for many people. However, it’s important to keep your price range and your impressions to yourself so that you can get the best deal possible.

Buying Real Estate vs. Buying Stocks: Here’s Why a Home Should Be Your Priority

Once you’re done with debt and you’ve started to save, it’s commonly the case that you’ll start hearing about the risks and rewards of investing in stocks or real estate. Unfortunately, it can be difficult for many people to know what type of investment is going to work better for them down the road. If you’re currently considering what you should put your money into, here are some reasons you may want to turn to real estate.

It’s Something You Can See

While investing in the stock market will give you the ability to invest as little or as much as you want, a home will take a monthly payment and a down payment in order to make the deal. Fortunately, this means that you’ll be investing money every month into something that belongs to you and that you can see. A home is not only something you can invest in all the time, it will enable you to avoid putting money into rent that you’ll never get back.

Saving Money On Tax Breaks

There may be a certain amount of volatility with any market investment, but when it comes to buying a home you also have the benefit of tax breaks that are designed specifically for homeowners. In addition to the ability to deduct interest on your main residence if you’ve lived in your property for a minimum of two of the last five years, you’ll also be able to sell it tax-free. Investing in a home certainly takes savings, but there are many available tax benefits that can save money.

A Sense Of Security

Many people want to invest in a home because it offers up a piece of something that they can really own. However, another appealing aspect of having a home is that you’ll be removed from the day-to-day rumblings of the stock market. Investing can make people more than a little weary, even if they’re knowledgeable about the markets, and this can cause people to sell off and lose money when the going gets tough.

Investing in real estate and the stock market both involve some degree of financial risk, but you might not be aware that there are several added benefits of buying a home. From the tax break incentives to the sense of security, real estate can often be the better financial route to take.

Thinking About Buying a ‘Fixer Upper’? Here’s What You Need to Know

With all of the home renovation and fixer-upper shows on television, the idea of completely renovating and re-doing an old home can seem like an enticing premise. Unfortunately, investing in the wrong fixer-upper can mean an awful lot of expenditure without the added financial rewards. Whether you’re considering investing down the road or are ready to dive in, here are a few things to consider first.

How Much Do You Want To Spend?

It’s easy to be swept away by possibility, but before making an offer you’ll need to sit down and determine exactly what you’re willing to invest into upgrades for your fixer-upper. By deciding what you would want to renovate, what the cost of materials and labor would be and how this figures into the market price of the home, you’ll be able to determine if the price you’re offering will be worth it.

Are Major Repairs Required?

It’s one thing to consider a nice paint job and new tiling in the kitchen, but if there are serious issues with the home, it can create huge financial issues to put money into it. Because foundational issues or water damage throughout the home can be expensive items to repair and will take time and resources, fixing these issues may cost more than the money you’ll make. If you’re uncertain about what you’re getting into, it may be a wise decision to bypass the investment all together.

Are You Willing To Work?

Most home fixer-uppers that people buy can be financially lucrative because the buyer is interested in doing a lot of the work themselves. However, if you’re thinking of hiring people to do the work for you, this can end up costing a lot more money and eating any profits the renovations might have created. It’s also important to realize that renovations can go over budget. Instead of being idealistic about a fixer-upper, ensure you’re certain it’s what you really want so that you’re not stuck with a home you don’t want to invest your efforts into.

The idea of digging in and getting your hands dirty with purchasing a fixer-upper may be endearing, but if you’re not truly prepared for the responsibilities it can be a drain on your time and your finances.

Understanding Real Estate Contracts and What You Can Expect to Find

There are a lot of things that go into the successful sale of your home, but many people are unfamiliar with the intricacies of the contract. Whether you consult with your real estate agent or plan on diving in on your own, it’s important to be clear on the terms. If you’re wondering what you can expect when it comes to the contract, here are some pointers on what to watch out for.

Real Estate Jargon

A real estate contract would not be complete without the professional terminology, so you’ll see words like amortization, price-to-income ratio and title that may impact the meaning of your contract. Instead of going it blind, search the Internet for terms or consult with your real estate agent to provide a clear explanation.

Specifics On The Sale

Information regarding the specifics of your property will be present in the contract, and it’s important to check this information before signing on the dotted line. While the address and location of your home are important, it’s also critical to verify the purchase price that has been decided upon, the closing date on the property and any other items that have been negotiated and agreed upon.

Be Aware Of Withdrawal Terms

It can be easy to be taken away by excitement once you’ve received the perfect offer on your home, but it’s important not to lose sight of everything that’s required before the sale has been finalized. One of the most important parts of the contract is the withdrawal terms that are laid out, so be certain you’re aware of what your rights are if you or the homebuyer decides to withdraw from the process.

Watch For Seller’s Responsibilities

If you, as a seller, do not remain committed to the terms of the contract this can be a deal breaker, so ensure that you’ve familiarized yourself with exactly what’s required of you. This may include everything from the maintenance on the property to offer negotiations, so it’s important to comply with these terms.

Dealing with a real estate contract can be confusing for the layman, so it’s worth your while to have a trusted real estate agent around who will be able to explain it. From withdrawal terms to seller responsibilities, there are plenty of things you should be aware of before sealing the deal.