Advantages of Home Ownership

d44This article reviews the advantages of homeownership as compared to renting. Homeownership creates a wide range of opportunities from increased social standing, financial benefits, and tax deductions. Homeownership is a means to increasing personal wealth, protection against inflation, and also significant tax advantages. The following list compiles the main financial and social benefits of homeownership:

• Tax Deductions – The tax advantages of homeownership include the following deductions: mortgage interest, real estate property taxes, moving tax credits, and capital gains. According to the IRS, if a property is owner occupied, the homeowner can deduct the interest paid on their mortgage loan and their equity or second mortgage. In addition, the property taxes for owner-occupied dwellings may be deducted. The capital gains tax break is applicable, if you sell your owner-occupied home for a profit and then use the profit to purchase another property. Whereas, the moving tax credit can be utilized if it is necessary to move for employment.

• Freedom to Customize – As a homeowner, you will have the freedom to remodel or improve your house without permission from a landlord. Whether you want to repaint a room, install new carpeting, finish the basement, or add an addition for more space, the choice is yours.

• Forced Savings – If you have a mortgage on your home, part of each payment you make will be towards the principal balance of your mortgage. Each time you make a payment you are building equity in your house. Each payment is a long-term investment in your future. In addition to paying down your mortgage, most housing appreciates, thereby creating more wealth for you the homeowner.

• Stability – Renters typically sign annual leases. If the landlord wants to sell the house or has financial issues you could be forced to move. In contrast, homeowners have full control over their property and decide if and when they will sell their home.

• Fixed Monthly Payments – As a renter, your monthly payment will likely increase over time. You will have little control over future increases in your monthly payment. A homeowner with a fixed rate will only see their payment increase if the property taxes or homeowners insurance increases.

There may be other benefits of homeownership depending on your income, family size, and investment philosophy. Before purchasing a home to occupy or investing in rental property, it is advisable to discuss your specific tax advantages of purchasing property with a knowledgeable tax preparer or CPA. Tax laws are constantly changing and can be extremely complicated.

Some Tips For First-Time Home Buyers

c22You have decided to go for it. Buying a home can be breathtaking and nerve-wracking at the same time, particularly for a first-time home buyer. It’s hard to know accurately what to expect. The knowledge curve can be steep, but most of the concerns can be determined by doing a little financial homework at the beginning.

Take these 5 steps to help make the procedure go more efficiently.

Now that you know how much you can afford.

Check Your Credit

The home buyer’s credit gain is amid the most important features when it comes to meeting the criteria for a loan these days.

Estimate assets and liabilities

So you don’t owe too much money and your payments are up to date. But how do you spend your money? Do you have lots of money left over every month, or are you on a shoestring budget?

A first-time home buyer should have an excellent idea of what is owed and what is approaching in.”You should know a little bit about monthly cash flow”.

Cover mortgage rates in your Locale

“If I was a first-time house buyer and I wanted to do the whole thing right, I would most likely try to path my spending for a couple of months to see where my money was going”.

For example, some experts, such as the self-employed or salesperson, may have a more hard time getting a loan than others.

Organize Documents

When pertaining for mortgages, lenders will request two recent pay remnants, the previous two years tax returns and the precedent two months of bank statements.

Purchasing a home can be time-consuming, but knowing what you require and where to find it can save time when you are ready.

Succeed Yourself

As a first-time home buyer, you previously know how much you can afford to expend before the mortgage lender advises you how much you qualify for Bank rates.

With manipulative debt-to-income ratio and factoring in a down payment, you will have a good thought of what you can afford both straight and monthly.

Though there is not a fixed debt-to-income ratio that lenders want, the old standard utters that no more than 25% of your gross monthly income be dedicated to housing costs. This percentage is called the front-end ratio.

Finally, speak with mortgage lenders when you are initiating the process.

Check with friends, neighbors and co-workers to find out which lenders they liked working with and ask them.

Buying A Home: Tips And Thoughts

cfrThese recent developments have further attracted many individuals from nearby cities to settle down in Noida and Greater Noida, resulting in a demand for residential complexes as well. The real estate builders in Greater Noida and Noida are taking a constructive prospect of the changing scenario.

Noida and Greater Noida are filled with opportunities for one and all. The developers have planned a wide array of residential projects in the region. These projects comprise of wonderfully planned apartments, villas, town houses, independent homes, 2 and 3 BHK flats in Greater Noida West and more. A majority of demand is inclined towards buying apartments in gated communities. Today, Noida city comprises of many gated residential communities & complexes with magnificent amenities.

Moreover, the government has also planned to extend the developments in the city’s infrastructure. This has attracted many buyers to invest in property in both Noida and Greater Noida. A few of the major factors that are adding to the popularity of the city is the strategically planned metro line, the Yamuna Expressway, the highly acclaimed educational institutes, world class commercial spaces, international level malls and stores, entertainment centers, ample greenery and more. The investors and home buyers are singling out Noida Extension as it also offers a variety of affordable and better residential choices as compared to its neighboring cities. A few of the best real estate developers in Noida are constructing well crafted luxurious projects which are equally well designed yet affordable projects, attracting every aspiring buyer.

The outskirts of Noida are gradually gaining popularity too, largely amongst the mid-income groups. Builders in Noida Extension are developing well designed yet spacious projects meant for affordable housing with all necessary amenities, making living convenient at feasible rates. Therefore, one can own spacious homes without worrying about day to day necessities or connectivity issues.

Owing to the astounding expansion in economy, infrastructure and commercial developments, there is a huge stipulation for all kinds of property in the entire Noida city. The investors are taking smart decisions by purchasing property as it is one of the most lucrative investments at the present age. The builders in Greater Noida are designing projects that interest all kinds of investors.

Thus, the competitive property prices in Noida, for both commercial and residential purposes, are the biggest boon to all aspiring buyers. The prices here, both commercial as well as residential, are much preferred over other cities. Excellent connectivity, infrastructure are a few other attractions in the region. Widely benefitted is the young generation who are new to the corporate culture & of course, the well settled families that need not look out for an affordable house. Noida is one place that offers immeasurable prospects for everyone.

Are You Looking for a Real Estate Agent Who Gives Cash Back

cvvWhat would you choose when buying a home? Cash back or no Cash back? Many Realtors are already engaging in sharing their commission with their home buyers.

Asking your realtor to share his/her commission is a valid question to ask. Not many realtors look forward to hearing this question and would prefer you didn’t know that it is possible for you to receive cash back; yet the inquiry should be encouraged by realtors from all possible home buyers; as the cash back to the buyer could actually make or break a deal for them. In many states it is now legal for a Real Estate broker to share his/her commission with the home buyer.

Although; there may be some lender restrictions; it is always best to search online or other advertising for Realtors actively advertising this offer. Once you have located some in the state you are wishing to buy a home; go over the details with your broker of choice to see if you actually qualify to share in the commission. In most cases cash back realtors may give you actual cash back at closing or the rebated funds may be applied towards your closing cost or possibly even used to lower the sales price. Each situation is unique as per state and lender regulations.

Realtors throughout the USA know and understand that due to the age of technology with everyone using computers, cell phones or tablets the home buyers are able to do the search on their own without the assistance of the Realtor. Searching for a home that fits your needs represents a good deal of the work. In the past the Realtors were the only ones who had access to the MLS (multiple listing service) and had to spend many hours by finding a home that fit the criteria of their buyers. Now the purchasers do most of that. Once a buyer locates one or more properties they then call an agent to show them the homes they have located online. Just for this reason alone Realtors simply don’t have to invest as much time with a home buyer as they did in the past and as such they reward their buyers by sharing a portion of their commission.

Yet be aware, even though you are sharing in the commission there are many steps of the home buying process that are better conducted by an experienced Realtor. It should be the cash back realtor’s duty to make sure they are not trading off a part of their commission for you to do all the work. Besides getting cash back you deserve to be provided with full services. It is important you receive assistance during every step of the buying process; regardless of whether it is your first home or next home. Just because you spend the time initially finding a property does not mean you get should get limited services.

Not only ask your Realtor of choice for the cash back option but be sure your cash back realtor represents you as a buyer’s agent not a transaction agent. This means your agent is working specifically for you to protect your interest. Your buyer’s agent should walk you through every step of the home buying process; such as setting up and accompanying you to the property viewings, writing and negotiating all offers, assisting you with mortgage lenders and specialized down payment assistance programs and especially accompany you on final inspections and to the closing table.

Whether you are someone still renting and are considering purchasing your first home or next; you should feel confident in your agent of choice and end up more than satisfied like the many other home purchasers who bought through a Realtor and received cash back.

So don’t hesitate to begin your search for the home of your dreams because you feel you might not have enough cash to pay for the many items required for the purchaser to handle. Working with a cash back realtor can help with up to 1% of the sales price in most cases. For instance if you were to purchase a $400,000 home, you would receive back $4000.00 to do with as you please. This kind of money can be used for virtually anything, including home repairs or updates, new furniture, a vacation, college savings funds or simply put it in the bank. In some situations the home buyer can get even more than the 1%.

Knowing that this option is available I can’t imagine why anyone would choose to settle for less than a cash back realtor. Search from them right along with searching for your perfect home. If they are not openly advertising this offer; then ask anyway!