Why Buying A Home Is Good Idea

Income Tax Savings

Because of income tax deductions, the government is subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1^st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.

Stable Monthly Housing Costs

When you rent a place to live, you can certainly expect your rent to increase each year – or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage – and interest rates aren’t as volatile now as they were in the late seventies and early eighties.
Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?

Forced Savings

Some people are just lousy at saving money, and a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate. Over time, history has shown that owning a home is one of the very best financial investments.

Of course if that home your looking to buy is at the Lake of the Ozarks, we would like to help you find it. Call the Spouses Selling Houses team at 573-302-2313. Until next time. Ebbie :)

"How's The Market" For 1st Qtr Report

This is Ebbies "How The Market" report. This month's offering is just a little bit different in that I look back at the statistics for Real Estate here in the Lake of the Ozarks for all of 1st Qtr.

Every month we like to take a look at the market to keep you informed. To play the video simply click on the play button in the vieo box below.

Thank you for subscribing to our blog. Until next time. Ebbie :)

Is A Fixer-Upper For You?

Fixer-upper” is one real estate term that needs no explanation. While many homebuyers are in the market for a home in move-in condition, others are willing to take their chances on fixer-up homes that need some work. Fixer-uppers can range from homes requiring relatively small cosmetic updates (new paint and carpets, for example), to those requiring major repairs, such as a new roof or complete re-wiring.

The Advantages of Buying Fixer-Up Homes

Fixer-upper homes can be an excellent choice for some homebuyers, especially those purchasing a starter home. Some of the advantages of buying fixer-up homes include:

• House prices: Houses that need significant repair work or require major renovation are often much cheaper than homes of a similar size or in a similar location. There may also be more room for price negotiation with these properties.

• Location: Purchasing a home in less-than-perfect condition can be a great way to buy into a neighborhood that would otherwise be unaffordable.

• Creativity: Everyone has her own idea of what makes the perfect house. A fixer-upper allows you to bring your vision for your home to life.

What to Look For in a Fixer-Upper Home

Before signing on the dotted line, you’ll want to arrange for a home inspection, which can identify potentially serious problems that aren’t readily apparent. Depending on the scope of the problem, anything found during the home inspection may help you negotiate a further reduction in price. When viewing the fixer-upper, keep your eye out for the following:

• Rodent and insect infestation: Look for mice droppings, roaches, mud emerging from cracks (a sign of termites), and other signs of infestation. Firewood piles stacked against a house can also present a haven for termites.

• Structural problems: Sloped floors, leaning walls, or cracks in a home’s foundation can all be signs of serious structural problems that can be quite expensive to fix.

• Wiring: Old wiring may need to be replaced, a potentially costly repair.

• Drainage problems: Ideally, the ground on the property should slope away from the house. Poor drainage can cause dampness in basements, flooding and other issues.

After the house is professionally inspected, call a licensed contractor out to the house to get a realistic bid on how much the repairs will cost. Then, have your real estate agent perform a market analysis to determine how much the house will be worth after the repairs are made.

Wondering How to Finance a Fixer Upper Home?

So, after laying out the money for the down payment and then the closing costs, how to finance the repairs or renovation on a fixer-upper home? Fixer buyers use many creative ways to finance the work, from credit cards to borrowing against their 401k plans.
You may be able to get a home equity line of credit (HELOC) based on the future equity you’ll have once the house is repaired. Talk you your accountant or attorney about the pros and cons of HELOCs.
The U.S. Department of Housing and Urban Development (HUD) offers a program for the purchase of fixer-uppers that includes the repair costs in the mortgage loan. Known as the FHA 203(k) program, it’s only available from certain, HUD-approved lenders and to borrowers who intend to live in the home.
Buying a fixer-upper is not for everyone, but for those with the patience to deal with renovating, it can be an economical way to purchase a home. For help findig your dream home at the lae, plct the Spouses Selling Houses team. Until next time. Ebbie :)

Is Now A Good Time to Buy?

Wondering if it’s a good time to buy real estate? The answer isn’t ever a straight yes or no, but often, "Yes, but it depends.” In order to answer this question for you, we first must understand the three most important words in real estate: Long-term ownership.

When we buy property, whether as a personal residence or for investment, we do it in hopes that we are financially better off down the road than we are today. The chance of that occurring is very low if one does not own real estate for at least five or more years. The reason is that transaction costs, repairs, monthly ownership costs higher than comparable rent, and ownership hassles, all dictate that it is better to invest your money elsewhere and stay as a renter if you are not sure you will own long term.

Since you are going to be a long-term holder (and the longer the better) you really should not be that concerned with short-term current market price fluctuations because ten years from now the home’s value will be more than it is today. You should be concerned about is finding a house that you “love"—one that fits all the right reasons you want to own that particular property for a long time!

This could almost be the end of this blog…but there are a few more issues to consider to make sure it is a good time for you to buy property. If you fail any of the below tests, you should think hard about whether or not it really is a good time for you personally to buy.
1. You are planning to be a long-term holder.
2. Payments are affordable and you have a steady job
3. It isn’t significantly more expensive to own over renting – this very important.
4. For investors, if it makes cash flow sense.
5. It is the right property for you for all the right reasons; i.e. you “love” it!
6. It is fairly priced relative to the recent comparable market sales in the immediate area for similar properties.
7. You plan to own it for a long time!
8. There aren’t too many foreclosures or vacant homes in the area. This is very important whether you are an owner occupant or investor. Empty unstable neighborhoods or communities have a higher risk of vandalism and risk downward price spirals.
9. It is in decent shape and doesn’t need much fixing-up. Skip the junkers, the ones with foundation issues, or anything labeled as “needs a little TLC” in the listing, as that means it is a wreck. Leave the fixers for the contractors. Doing it yourself doesn’t usually save you much money.
10. The home isn’t near a big vacant parcel, non-residential zoned parcel, empty or retail/industrial/religious site where you are not 100 percent sure what is going to be built or in use there. A new use of that land could impact your “quiet enjoyment” of your residential unit.
11. You complete the proper due diligence steps to reduce your risk as much as possible. Mind your contract terms and contingencies, pencil out your deal, get a couple of bids on financing and dissect your GFE, review the HOA condition, review the property condition, make sure you have the right type and amount of property insurance in place, make sure you adequately review the title abstract and title policy and everything else you need to do to lower your risk.
12. And you plan to own it a long long time!

I laughed when someone once said “location, location, location” were the three most important words in real estate. Not only is that actually only one word but we pay a handsome premium for “location” and is that premium worth it? It may or may not be, but the phrase “long-term ownership” is by far and away the three most important words in real estate.

To summarize: Subject to the above issues, it is always a great time to buy real estate but:

• Not for everyone
• Not at any price
• Not just any property

Find a house you love or rental property that makes sense, something you will own for a long time, is in decent shape, lock in a long-term mortgage and sleep well. Please let us be your Realltors at the lake. Call the Spouses Selling Houses today and lets get moving. Until next time. Ebbie :)

How's The Market?

This is our newest feature on Ebbie's Blog from lake of the Ozarks. It's called "How's The Market" with Ebbie Bogema. A short glimpse into the monthly state of the Real Estate market here at the Lake of the Ozarks.

 

Ebbie will be keeping you updated on all of the current statistics on a monthly basis. We hope you enjoy this new feature and really welcome your feedback.

 

If you are looking for Real Estate at the Lake of the Ozarks please call the Spouses Selling Houses team. Until next time. Ebbie :)

We Want To Buy A Home... Where Do We Start?

1. Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.
In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months.

10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Of course buying a home is an exciting time. Please let us help you through the entire process. Call the Spouses Selling Houses team. Until next time. Ebbie :)

101 Ways To Praise Your Child Bookmarks

I don’t know about you, but I find myself praising my children and grandchildren by saying “good” about 2 million times a day. It is just an automatic response. But I am so tired of saying “good” when they get something right!

I recently ran across 101 Ways to Praise a Child. It is a list that was generated by a MOM years ago. Moms always know what you need, even before you need it! So I tweaked it a little bit and wanted to share it with you!

We have also just received our new "101 Ways to Praise A Child" bookmarks so that you will vere ever be left speechless when it comes to telling the kiddos what a great job they did. If you would like one of these bookmarks, we would be more than happy to send you one absolutely free.

Just email me at ebbie@lakeozarkforsale.com and give me your mailing address and we will get it right out to you.

We feel it's important to be able to praise our
children and grandchildren in many different ways... and often. Please
accept this free gift from us so that you too will have "101 Ways to
Praise Your Child" always at your fingertips. As always, if we can be of
assistance in your Real Estate needs at the lake, do not hesitate to call.

The Spouses Selling Houses team is here working for you. Until next time! Ebbie :)