Showing posts with label buying a home. Show all posts

Monday, January 9, 2017

Buying Verses Renting - Its REAL!

The ironic thing about people who think they can’t afford to buy a home for themselves, end up buying the home for their landlord. There are several facts that support this notion. Home is Leveraged Investment-300.png

Mortgages, whether held by an owner-occupant or an investor, are usually amortized so that each payment reduces the principal amount owed so that the loan will be repaid totally over the term. A tenant is inadvertently retiring the landlord’s mortgage with his monthly rent.
In most cases, the mortgage payment including taxes and insurance will be lower than the rent tenants are paying. Some experts are saying that we may never again experience the incredibly low mortgage interest rates currently available.
Renting precludes a person from enjoying the advantage a home has as a leveraged investment. When the borrowed funds cost less than the investment is returning, the rate of return on the down payment grows much faster. As you can see from the chart, a 2% appreciation on a home could result in big returns on the down payment. In most cases, there are very few or no alternative investments that offer homeowners similar returns.
Even if a buyer agrees with all of these things but doesn’t have the down payment or cannot qualify for a loan, they still need to investigate further. To find out exactly what types of loans are available and the specific down payment required which can be a whole lot less than 20%, they need to consult with an experienced, trusted loan professional (an Internet lender or a “BIG” bank may not be the best choice.) Call for a recommendation.

Monday, October 31, 2016

Buy your retirement home now! And move in later.

Dial Down Risk for Retirement

There is certainly no shortage of retirement planning strategies available to individuals who actually take the time to consider them. What most financial experts do agree on is that the closer you are to retirement, the less time you have to recover from a loss. For that reason, many people start dialing down their risk factors as their age increases.

One way to minimize risk is to invest in things that you know and understand. For the majority of homeowners, their largest asset is the equity in their home which they generally have more familiarity than other types of investments.

Buy the home you’d like to retire to today and use it as a rental property. Finance it with a 15 year loan so it will amortize quickly and possibly be paid for at retirement.

Continue living in your current home until you’re ready to move into the home you’ve designated at your retirement home which will not create a taxable event. Prior to moving in, you can rehab the home so that it fits your style and needs exactly.

If you’ve lived in the current home for at least two of the last five years, you can exclude up to $250,000 of gain for single taxpayers and up to $500,000 for married taxpayers. The proceeds could then, be invested for income.

Some of the attractive features of this proposal is that you’re familiar with the operation of a rental due to similarity of owning a home. Most experts agree that home prices will continue to rise and so will rents. The maintenance people that you use for your home can also work on your rental. If you don’t want to deal with tenants that can easily be delegated to a property manager. Low mortgage rates with short terms and high rental values contribute to positive cash flows that will pay for the property.

Obviously, there are many other considerations you’ll want to investigate with your tax and real estate professionals these can get the conversation started.

Monday, October 24, 2016

Do You Need Down Payment Assistance? You May Actually Have it and Don't Realize It.

Saving the down payment may be unnecessarily keeping would-be buyers from getting into a home. They may be unaware that the funds might be available.
The NAR Profile of Home Buyers and Sellers reports that 81% of first-time buyers got all or part of their down payment from savings. Less than 4% said that all or part of the down payment came from a withdrawal in their IRA and 8% from their 401(k) or pension fund.

Traditional IRAs have a provision for first-time buyers which include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdraw up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go to IRS.gov.
Allowable withdrawals from traditional IRAs can be from yourself and your spouse; your or your spouse’s child; your or your spouse’s grandchild or your or your spouse’s parent or ancestor.
Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.
Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from a 401(k) that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.
A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.
Your tax professional can provide you specific information on how making a withdrawal from your retirement program might affect you. Additional information can be found on www.IRS.gov.

Monday, June 27, 2016

Down Payment Options for Buyers.

For the person who has good credit and income but not enough money for the down payment on a home, their qualified retirement program could offer them some help. The rules are different depending on whether it is a 401(k), a Roth IRA or a traditional IRA.

Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from 401ks that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.
A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid with as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.
Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.
Traditional IRAs have a provision for first-time buyers which include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdrawn up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go to IRS.gov.
Another interesting fact about this provision is that the taxpayer making the withdrawal can help a relative includes children, grandchildren, parents and grandparents.
If you want more information to clearly understand the issues involved relative to your specific situation, talk to your tax professional or consult www.IRS.gov.

Thursday, January 22, 2015

Toomer's Corner is going to get remodeled. What a nice change.

Toomer's Corner intersection to be reconfigured, improved

From The City of Auburn

A rendering similar to what Toomer's Corner could look like after redevelopment.

Posted: Wednesday, January 21, 2015 10:53 am | Updated: 11:04 am, Wed Jan 21, 2015.

Katherine Haas | Opelika-Auburn News

Toomer’s Corner will be getting some love this Valentine’s Day, as it will once again be home to a pair of large live oaks.

The corner has been void of foliage since its former trees were removed in April 2013 after being poisoned following the 2010 Iron Bowl.

“Our goal all along was to restore the corner with large trees at the earliest opportunity,” said Dan King, assistant vice president for Facilities Management, in a previous press release. “Last summer we completed the hardscape to improve aesthetics and the pedestrian experience. The only thing missing was the trees. We think this plan honors the tradition of the historic original oaks.”

The Auburn City Council approved resolutions Tuesday night to temporarily closing city streets for the planting of the new oak trees at Toomer’s Corner on Feb. 14 and on April 18 for an Auburn Oaks celebration event to be held after the Auburn University A-Day football game.

The planting on Feb. 14 is set to begin at 7 a.m. and is estimated to take seven hours to complete. Celebratory rolling of the trees, both of which are approximately 30 feet tall and have approximately a 25-foot spread, will not be allowed for at least a year while they get established.

The council also approved an agreement with Inline Electric Supply Company, Inc., to purchase two mast arm traffic signal poles for $34,168.28 for the Toomer’s Corner Project. The two poles will replace the four poles currently at the intersection.

According to Auburn city engineer Jeff Ramsey, the traffic signal poles are similar to the decorative black poles located at the intersections of Shug Jordan Parkway and South College Street and Bent Creek Road and Glenn Avenue.

“I think it’ll be a nice improvement,” Ramsey said. “It’ll open up the university side of Toomer’s and the Toomer’s Drugs side. It kind of opens that up and gives you a better view of those corners.”

After ordering the poles, it will take the city three to four months to receive them, Ramsey added.

In addition to the new traffic signal poles, other aesthetic improvements that are planned for the intersection this year include removing existing black fencing on the corners in front of Toomer’s Drugs and Bank Vault and adding brick inlaid sidewalks and brick seat walls on all three of the city’s corners of the intersection to match what the university already has in place on its corner.

Raised brick crosswalks will also be added on all four sides of the intersection and will be similar to the ones that connect the university to the other side of Magnolia Avenue.

The tiger paw in the middle of the intersection, which is currently repainted every year by the Auburn University Student Government Association, will be replaced with a permanent brick inlaid tiger paw that is level with the sidewalks. New street trees will also be planted.

“The landscaping downtown’s a little bit tired, and it needs to be replaced,” Ramsey said. “Some of that stuff is dated, and it kind of needs a facelift.”

Ramsey said the goal is to have the Toomer’s Corner intersection project completed before next football season.

“I think you’ll see that it’ll be more pedestrian friendly when we get through with it, and that’s kind of what we’re striving for,” Ramsey said.

In other business, the Council also:

-approved an agreement for three year inert construction and demolition waste disposal service at $28 per ton with Sand Hill Recycling, Inc.

-voted in favor of purchasing the following vehicles: one 2015 Ford F350 Crew Cab with dump body from Stivers Ford Lincoln Mercury ($33,201) for the Parks and Recreation Department; one Pierce Velocity custom four-door chassis 75-foot quint ladder truck from Emergency Equipment Professionals ($744,889) for the Public Safety Department (Fire Division); one 2014 Ford F150 Supercab 4x4 pickup truck from Stivers Ford Lincoln Mercury ($24,475) for the Public Safety Department (Fire Division).

-appointed Clint Wilson to the Board of Zoning Adjustment and Council member Ron Anders to the Lee Russell Council of Governments as the City of Auburn representative.

Information and Article provided by OANEWs.

New Dog Park Coming Our Way!

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Auburn to construct dog park at Town Creek

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Todd Van Emst/O-A News

Nicloe Miglionico and Amanda Swan sit with Millie at Town Creek Park on Wednesday, Jan. 21, 2015 in Auburn, Ala.

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Posted: Wednesday, January 21, 2015 3:56 pm | Updated: 6:19 pm, Wed Jan 21, 2015.

Katherine Haas | Opelika-Auburn News

Barking is allowed, leashes aren’t required and running fast is encouraged.

The City of Auburn has plans to establish a leash-free zone for four-legged friends to roam in the form of a new dog park located in Town Creek Park on South Gay Street.

The dog park, which will be the second in the city behind the existing one at Kiesel Park, will be fully accessible and in compliance with ADA (Americans with Disabilities Act) guidelines.

Alison Boykins Frazier, Auburn’s public works representative for the project, said the idea for the dog park at Town Creek came following a request from a disabled resident.

“In September, the city received a request by a disabled resident for access to the dog park (at Kiesel),” Frazier said. “While temporary accommodations were made to provide her access, a more permanent solution was necessary.”

Frazier said that after reviewing the possibilities of providing permanent ADA-compliant access at Kiesel, it was determined that selecting another space for a second dog park in the city was more practical. Plans for the dog park at Town Creek were approved by the Greenspace and the Parks and Recreation Advisory boards.

“As the dog park at Kiesel is already heavily used by residents, a second dog park would not only help to meet current demand, it could also be located and designed such that it would also be fully accessible to all residents,” she explained.

The dog park, which will be similar to the dog park at Kiesel but slightly smaller in size, will be located to the right of the restrooms in the existing open green space at the front of Town Creek Park. Fencing, lined with new evergreen trees as a screen, will section off the space to allow dogs an opportunity to run free and socialize with other dogs while still being contained. A double gate entrance is also included in plans.

Frazier noted that the park will be convenient to restrooms and parking.

On Tuesday night, the Auburn City Council approved a contract with Morrison Hemphill Construction for a $16,970 sidewalk modification project at Town Creek related to the construction of the new dog park.

Frazier explained that the sidewalk modifications will involve the installation of a sidewalk adjacent to the bathroom heading toward the existing boardwalk and northward. The sidewalk leading to the pavilion will be removed and replaced.

According to Michael Edwards, ADA coordinator for the City of Auburn, the sidewalk project is part of a larger project that includes parking and restroom improvements, which were completed last fall, the dog park and the overall improvement of accessibility to the park’s features.

“This project is aimed at ensuring the city’s programs and facilities comply with the Americans with Disabilities Act,” Edwards said. “Once completed, the project will also provide an additional fully accessible venue for outdoor concert events.”

Frazier said construction on the project should start in the next three to four weeks, weather pending, and work will take about 30-45 days to complete.

Article and information provided by OANEWS.

Wednesday, January 7, 2015

Take the Stress Out of Homebuying | Realtor Magazine

There are steps you can take to make the home buying process less stressful. The article below give great advice on how to do that. Make sure you read it so that you can create a good home buying experience.

Take the Stress Out of Homebuying | Realtor Magazine

Friday, December 19, 2014

DesignIntelligence ranks three Auburn University programs among nation’s best - OANow.com: Auburn

More reasons why people move here and go to college.

DesignIntelligence ranks three Auburn University programs among nation’s best - OANow.com: Auburn Publish Post

Friday, December 5, 2014

Real Estate Market is still holding strong. Call me today and see what the value of your home is.

Lee County area residential sales in October increase 3% from prior year; YTD sales up 8%

Published: Friday, December 05, 2014, 7:45 AM Updated: Friday, December 05, 2014, 7:51 AM

By Alabama Center for Real Estate (ACRE)
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Click here to view or print the entire October report compliments of the ACRE Corporate Cabinet.

Monthly Sales: Lee County residential sales totaled 92 units in October, an improvement in sales growth of 3.4 percent from the same period a year earlier. October sales were 4 units above our monthly forecast. The year-to-date sales forecast through October projected 1,178 closed transactions while actual closings were 1,208 units representing a favorably cumulative variance of 2.5 percent.

Lee County residential sales rise 3% in October from last year. Housing Inventory has been reduced by 41% from the October 2010 peak. Infograph courtesy of ACRE. All rights reserved.Alabama Center for Real Estate (ACRE)

Supply: The Lee County housing inventory in October was 808 units, a decrease of 2.8 percent from October 2013 and 40.9 percent from the month of October inventory peak in 2010 (1,367 units).

October inventory in Lee County did increase by .7 percent from the prior month. This direction is consistent with historical data indicating that October inventory on average ('09-'13) increases from the month of September by 8.1 percent.

The inventory-to-sales ratio in October was 8.8 months of housing supply. Restated, at the October sales pace, it would take 8.8 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 7.5 months during the month of October so Lee County is a market where buyer and seller currently enjoy close to equal bargaining power.

Demand: As anticipated, residential sales decreased by 14.0 percent from the prior month. This direction is consistent with seasonal historical data indicating that October sales on average ('09-'13) decreases from the month of September by 9.8 percent.

Existing single family home sales account for 54 percent (down from 66% in Oct'13) of total sales while 32 percent (up from 25% in Oct'13) were new home sales and 14 percent (up from 9% in Oct'13) were condo buyers.

Pricing: The Lee County median sales price in October was $190,000, a 8.5 percent increase from last October. The October median sales price also rose 5.6 percent compared to the prior month. Historical data ('09-'13) indicates that the October median sales price traditionally decreases from the month of September by 1.4 percent so the break of this recent trend may signal encouraging news for the market (time will tell). Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate and we recommend contacting a local real estate professional for additional market pricing information.

Industry Perspective: "From a housing perspective, we anticipate that overall home sales will be weaker in 2014 than in 2013. For 2015, we expect only a moderate pickup in total home sales but enough to post the best performance since 2007," said Fannie Mae Chief Economist Doug Duncan. "We lowered our expectation for housing starts just slightly to 1 million units for 2014, but our view of mortgage originations has not changed... For 2015, we are cautiously optimistic that ongoing labor market improvements, low mortgage rates, rising inventories, and some easing of lending standards will boost home sales by roughly 5.0 percent. However, we still believe housing will continue along its upward grind rather than have the breakout year some are expecting." For full report, go HERE.

See how Lee County compares to other Alabama real estate markets.

Thursday, November 20, 2014

1722 Scarsboro Lane, Auburn, AL 36830

Turn the key and come home to this outstanding, like new, all brick home in desirable Camden Ridge. This 4BR, 2-full & 2-half-bath, double-garage residence with ivory kitchen cabinetry, bonus room/4th bedroom with custom built-in shelving, huge professionally landscaped yard and a long list of delightful features. You will love the feeling of spaciousness and warmth in this fine residence. Priced at only $299,900. Call Sylvia today for a showing!

7 Sweet Homes In Alabama 2 of which are from our own 2 Realtors in our association. Take a look!

7 Sweet Homes in Alabama

If your ideal Thanksgiving table is dressed with spicy collards, cornbread dressing, and bourbon-laced pecan pie, you’re going to adore these beautiful, historical homes for sale in the heart of Dixie. The home state of our magazine headquarters offers a treasure trove of sweet, Southern architecture at every price point!

By Elizabeth Finkelstein

Courtesy of CRC Realty

We’re crazy about the stately elegance of the Italianate style, which is why we’re so fond of the historical Timbleton Home. Located in the city of Florence, the house features original woodwork and crown molding throughout. We can just picture this one all dressed up for the holidays.

For more information and photos, visit CIRCA Old Houses.

Asking Price: $327,000

Listing Agent: Becky Newman, CRC Realty; (256) 718-0111

Courtesy of Bass Agency Real Estate

How’s this for a whimsical porch? Filled to the brim with original woodwork and stained glass, this lacy confection is a steal at just $110,000.  

For more information and photos, visit Bass Agency Real Estate.

Asking Price: $110,000

Listing Agent: Tripp Bass, Bass Agency Real Estate; (334) 222-3145

Courtesy of The Eufaula Agency, Inc.

It’s easy to see why old-house lovers flock to Eufaula — the city is home to Alabama’s second largest historic district. This ca. 1850 home packs in over 5,000 square feet of Italianate-style beauty, while the meticulously landscaped yard adds to the overall charm.

For more information and photos, visit The Eufaula Agency, Inc..

Asking Price: $370,000

Listing Agent: Michelle Hawkins, The Eufaula Agency, Inc.; (334) 687-7001

Courtesy of RE/MAX Professional Partners

Rumored to have been built on a Civil War battle site, this ca. 1872 home in located in the city of Lanett. The classic beauty sits on three generous acres.

For more information and photos, visit CIRCA Old Houses.

Asking Price: $395,000

Listing Agent: Ashley Miller, RE/MAX Professional Partners; (334) 826-7111

Courtesy of Prestige Properties

Looks can be deceiving! At 4,600 square feet, this restored, turn-of-the-century home is larger than it appears. The inside is simply stunning, from the authentic wooden trim right down to the antique fixtures. The home is located in the city of Opelika.

For more information and photos, visit Postlets.

Asking Price: $382,000

Listing Agent: Ashley Smith-Durham, Prestige Properties, (334) 559-8817

Courtesy of Conner-Lawrence Real Estate

Dating back to 1872, this charming home is listed on the National Register of Historic Places. It’s easy to fall in love with the wrap-around porch and gracious, historical interior. We’re talking 14 foot ceilings! 

For more information and photos, visit The Eufaula Board of Realtors.

Asking Price: $259,000

Listing Agent: Camilla Shamblin, Conner-Lawrence Real Estate; (334) 355-4440

Courtesy of Bill Mackay Real Estate

How could you not feel warm and fuzzy coming home to this house everyday? The ca. 1840 Lockett-Martin Home is listed on the National Register of Historic Places and is part of the West Marion Historic District in Marion, Alabama. It comes with a bit of Southern history, too: Mary Lockett is credited with designing the first flag of the Confederacy — the “Stars & Bars” — in 1861. The best part of the house is the asking price of just $110,000.

For owner contact information and photos, visit Bill Mackay Real Estate.