first Time home buyer

Great Reasons Buying A Home Is Better Than Renting

November 17, 2021 By Deborah Ward

The common wisdom is that buying a home is better than renting. Common wisdom exists for a reason, buying is better than renting and here’s why.

The first reason is cost

If you rent a home it costs you more in 5 years than buying one does. Here’s how. If you rent a home for $1,500.00 per month for 5 years will cost you $90,000.00. Buying a home with a mortgage payment (principal and interest only) of $1,500.00 is $90,000.00… BUT a homeowner gets a tax deduction for the interest paid on their mortgage. Let’s say that deduction is a total of $3,000.00 or $250.00 a month. Over 5 years that’s $15,000.00. Deduct that from your 5 year amount paid out and you actually only paid $75,000.00! That doesn’t even take into account a First Time Home Buyer tax credit that you may qualify for if you’re a first time owner.

Finite vs infinite

Those monthly payments are finite with a purchased home, but infinite when you rent. Your mortgage has a beginning payment and end payment and once you pay that last payment, you get to live in your home with no monthly payment to stay there (beyond your real estate taxes). When you rent, you pay a monthly payment to live in the home with no end unless you leave. If you rent a home and walk away from it when the lease is over you leave with nothing but the possessions you came with. When you sell a home, you get back the equity, or value, that you put into the home. As you pay your mortgage, you gain equity from the amount of principal paid. You also gain equity when the value of your home rises. For instance, if you purchased your home for $150,000.00 and sell it ten years later for $250,000.00, you gained $100,000.00 in equity.

Repairs and updates

That rise in equity can come from changes in the market, but also in the value of repairs and updates you make to the home. Those repairs and updates can be made when you want and no one else gets a say. If you rent and want to update even the paint in a room, you need the permission of the landlord and if they say no, you’re stuck.

So yes, it pays to buy!

If you are thinking of buying a home in the Tampa Bay area, give The Deb Ward Team a call! 727-410-0336

Three Things You MUST Do Before You Get Ready To Buy A House

November 17, 2021 By Deborah Ward

Whether you are a first time home buyer or selling a home to up or down size, there are three things you must do before you buy a home.

First thing you must do is make a reasonable wish list.

Sure everyone wants a perfect house with nothing to fix or maintain, but that’s not reasonable. When you make your list, think about what is most important to you. Start with location. City, suburbs, rural area?

What about how close you want things like mass transportation or entertainment? What about schools? There is a lot to consider. Then move onto type of home. Single family, townhouse or condo? Ranch style, split foyer or colonial? How many bedrooms? Bathrooms? Square footage? a lot of group or not?

When you make an offer on a home, keep in mind that there will be some things that the inspection will find that will need to be repaired. Be reasonable in what you ask be fixed or replaced. It’s reasonable to ask that items the inspector found be repaired or an allowance given.

It’s not reasonable to demand a brand new HVAC system because the inspector says that the current system is in good condition but “will eventually fail.” No kidding, every system will eventually fail!

Next, get pre-approved for a mortgage.

That way you know what you can realistically afford. It also gives you a leg up in the negotiations once you find the home you want to buy. It’s a big plus for a seller knowing that the buyer won’t have to lengthen the time to closing to get approved for a mortgage.

Lastly, set a timeline for buying.

If you need to be moved into the area by a certain date, make sure you are leaving yourself a reasonable amount of time to search for and purchase your home.
Now, share all of this with your realtor and get looking!

Please Cut Down That “Must Have” List A Little

October 27, 2021 By Deborah Ward

Every buyer has them. You know, the “must have” list. Since people started buying homes there has been one. The problem now? The “must have” list is out of control. What do I mean by out of control?

Please Cut Down That "Must Have" List A Little Well when people used to look for their first home, their “wish list” often consisted of a home with 2 or 3 bedrooms, a bath or two and a particular size piece of property. If it was in good shape, great!

But it wasn’t expected to be perfect and top of the line. The expectation used to be that you would move in and start to do small projects to update or make the space your own.

Those days are long gone

With the advent of networks on cable like HGTV and DIY Network, the expectations of home buyers has been jettisoned to the sometimes ridiculous. Just turn on a show like HGTV’s House Hunters and listen to what new home buyers expect to find in their first home.

The typical “must have” list now includes things like granite counters in kitchens and baths, top of the line appliances, open concept with no beams, hardwood floors, en suites, upscale laundry rooms, outdoor entertainment space, huge closets and more rooms than a couple could need even if they had a child or two.

Why all these demands?

There are probably a lot of reasons why this expectation of living is part of the new home buyer’s demands, but some of it can be directly traced back to home networks. They make it look normal to have those amenities. In reality most homes don’t have those top of the line amenities. It takes a lot of money to add them and the average homeowner needs to be more worried with systems, roofs and making mortgage payments!

So, first time home buyer, lower your standards! Make your “wish list” within reason and you will find that home that fits you at a price you can afford.