by David Glenn | Nov 14, 2016 | CRESTICO
The fact that Interest Rates have dropped to near historic lows as the rents continue to sky rocket in most urban set ups, buying a home seems to tilt the balance to its favor. The reports by Trulia also suggest that for renting to become cheaper than buying, the 30-year fixed mortgage must hit at least 5% in Los Angeles and 5.1% in New York City. However, the mortgage rate has hit a low of 3.17%, making the projection unattainable, at least in the near future.
As much as the statistics favor home buying over renting, for many Americans, the financial tradeoff may not be easy. Numerous advantages come with home ownership, not to mention the tax deductibles on your mortgage interests. But if you don’t carefully analyze your financial situation and make informed choices, home ownership can turn into a financial nightmare.
The most critical component of your decision-making process should be your financial stability. You need to ask yourself key questions like: How stable is your job? How likely are can you get a pay raise or promotion over the coming years? Is your job likely to shift locations or cities? How stable is your marriage or relationship? Is there a possibility of splitting up or divorcing that may occasion untimely disposal of the home? And so on. If the answer to one or more of your questions indicates doubts on whether you will maintain the house within the next five years or more, then it would be pointless to commit yourself, regardless of the mathematics.
Change of Cities
If the nature of your job or appointment involves frequent relocation or change of cities, you may need to evaluate between buying and renting. Many home owners have suffered the cost of servicing mortgages for homes they do not live in. They even spend more resources in renting homes in their new location. Their efforts to sell may be thwarted when the timing coincides with the market lows when the mortgage interest rates rise, wiping out their equity and savings.
Financial Situation
Many Americans are living under strenuous financial situation and may not be in a position to save enough for the down payment. You need to analyze your individual financial status. The ultra-tight Real Estate markets like San Francisco even make it harder for aspiring home owners.
Home Insurance Costs
It is important to know that homeownership doesn’t stop with the acquisition of the mortgage. You’ll need money to settle your property taxes, and the mortgage company will require a proof of home insurance policy. When you rent a house, your landlord will cater for property insurance in addition to some utility bills like water, heating, or power. However, you may need to provide for your rental insurance, which is much more affordable. The policy still provides good benefits of homeowners’ insurance, except that it doesn’t cover the building structure.
Home Maintenance Costs
As a homeowner, you take responsibility for all your maintenance costs like fixing a leaking roof, the parading ants over your kitchen cabinets, broken toilet bowls, electrical breakdowns, and much more. And then there’s the dirty task of mowing your lawn, cleaning the compound, painting the walls, etc. When you decide to rent, most of these tasks will be done by the landlord or an appointed agent.
Bottom line
While it’s true that reduced rates are quite tempting to potential home buyers, you shouldn’t use the statistics to make costly purchases that could turn problematic. You can consider renting affordable housing alternatives like studio apartments as you put aside substantial savings for future investments. That way you’ll be able to make much larger down payment when the markets can’t offer better mortgage rates.
If you borrow less and give a huge down payment, the banks and the property sellers will prefer you over your competitors in a bidding situation. Additionally, your house will appreciate much faster in value as interest rates reduce, cutting down your financing costs.
by David Glenn | Sep 6, 2016 | CRESTICO
A house isn’t just a place where you can walk around in your undies or for eating ice cream right out of the tub. A home aligns with your personality and your preferences. Every corner, crevice, and arrangement of rooms and beams all embody the homeowner and define how he/she lives. Finding the right property that offers adequate space and comfort, a good price point, and real value can be tricky, however, thanks to the dozens of property listings you’ll find in the market. Here are five tricks to knowing when you’ve found the perfect abode.
Define Who You Are
This doesn’t mean you should go on a self-discovery phase before finding a house. On a profound level, determine who you are as a person and as a professional. What career changes do you expect to encounter in a 5- or 10-year period? Are you planning to have children or pets in the house? Are you a gardener or a woodworker? Do you like throwing parties for friends and family or just enjoying weekends in peace and quiet? Knowing the answers to these questions will put you at a much better position to find a home that supports your lifestyle choices.
Know What Types of Housing Exist
Luckily, there are fewer housing types than there are personalities. Still, it makes sense to understand and embrace the different types of housing accessible today. Single-family homes, townhouses, and condominium units are three of the most popular types of housing. Townhouses are basically a hybrid between the more expensive single-family house and the least-spacious condominium unit. While condos are definitely a good investment, especially if you buy around business centers and well-developed locations, the idea of having neighbors around you doesn’t really appeal to some aspiring homeowners.
Consider Buying an Existing Home
Buying an existing house instead of having one built from the ground up is usually the more affordable and faster option on the table. Although it may not precisely match what house you envision for you and your family, being able to pick from a wide selection of houses that’s ready for you to move into is a decent trade-off. You can choose houses based on the included amenities, such as a garden, patio, or swimming pool, or even based on style. Some fleece covered furniture, for instance, might be preferred by buyers over wool or other materials.
Filter Choices Based on Pricing
Houses that align with your personality but cost too much are never a smart investment. Buy or finance housing that you are comfortable paying for over a stretched period of time. Narrow down your choices based on houses that meet your budget. Establish a ceiling and floor price range. When negotiating with sellers, try to keep the numbers from crossing the established ceiling and floor prices. If they cannot meet you halfway, then walk away. There’s always somebody else somewhere that could meet your budget requirements.
Ask Trusted Family or Friends to Help You
Who else to advise you on what would be the right home for you than trusted family members and close friends? These people have spent a considerable amount of time with you so they have a good idea of who you are and what you really want. In some cases, their suggestions might make even better sense since they’re able to make objective decisions. You, on the other hand, might be stepping too close to the project that you overlook some important details or refuse to consider some mitigating factors out of bias.
Finding the perfect home that matches your personality will take some degree of effort that few aspiring homeowners are genuinely willing to take. With the five simple tips above, you’ll be able to find a suitable home for you and your family without breaking the bank or compromising design and comfort.
by David Glenn | Jul 8, 2016 | CRESTICO
Building a house from the ground up has a number of benefits over buying a house. You have the chance to select all the right elements to build the perfect space, including the features found in the kitchen and bathroom and even the color of the walls. When you meet with a builder to begin the process though, you should have an idea in mind of what you want. Creating a list of things you want to request will give you a better idea of what the finished product will look like and how much it will cost.
Energy-Efficient Windows
Did you know that energy-efficient windows can help you save significantly on your heating and cooling bills? These windows usually feature two panes of durable glass with a gas in the center. The windows block cold or warm air from escaping your house and eliminate drafts too. You can choose from a wide range of styles, including those with trim made from wood, vinyl or aluminum, and you can pick from different designs too, including fixed picture windows or casement windows that open from the front. Make sure you request that your builder install energy-efficient windows to save on heating and cooling bills in the future.
Exterior Materials
Curb appeal refers to how your house looks from the street or the curb. While adding new flowers or having welcoming decorations on your porch can help you increase your curb appeal, you’ll also need to select the right materials for the exterior of your house. Some people love the look of brick, but if brick is too expensive for your budget, you can put brick on the front and vinyl on the back and sides. Both vinyl and wood siding now come in a number of options, including neutral colors that let your decorations stand out and brighter and bolder colors.
Outdoor Entertaining Space
If you love throwing parties and inviting guests over, your new house must feature some type of outdoor entertaining space or area. Depending on the design and layout of the house, you might opt for a small backyard patio that has just enough space for a small group or a large porch that wraps around two or three sides of the house. Your builder can help you decide on a design that works with the style of the house and one that meets your entertaining needs.
Warranty Options
Always request some type of home insurance or home warranty that will protect you in the future. The builder should offer a warranty that covers any installation problems or issues that occur because of builder errors. You may want to look at a general home warranty plan too. These warranties are quite affordable and let you get help when an appliance fails or you experience other problems. With appliances, the warranty company will often send a repair technician to your home. The repair tech will either fix the problem on the spot or let you know that you need to send off the appliance for servicing.
Flooring
One of the more important things that you need to request is the right type of flooring for each room. Tile is great in an entryway, kitchen or bathroom because it repels moisture and is easy to clean. While hardwood looks amazing, laminate flooring has a similar look and costs a fraction of the price. Some find that laminate is easier to clean than hardwood too. For a warm and welcoming feel in your living room or family room, you can’t go wrong with carpet, which comes in hundreds of colors, designs and even thicknesses.
Now that you know what to request in your new house, you can meet with a builder and start discussing your options. A good builder will give you an estimate as to the final cost and alert you of any issues or problems that might increase that price along the way.
by David Glenn | May 27, 2016 | CRESTICO
Buying a home is a pretty big step in our lives. And knowing just what to do, how to do it, or everything that you need to do can get tricky and confusing. There a lot of people who will give you a lot of advice, but there are just a few that you should definitely pay attention to. We’ve rounded them up for you here to make that transfer from potential buyer to homeowner.
Homeowner’s Insurance
This is a big one. Homeowner’s insurance is one of the most important things that you can invest in for your new house. This insurance, like all insurance, is meant to keep you and your family and property safe from any potential damage or situations that occur.
Along with homeowner’s insurance, investing in a home warranty plan is also a very handy and important addition to your new space. A home warranty plan is a great way to keep your home systems, appliances, and so much more safe from the everyday wear and tear that comes from home life and from those “rainy days,” like a flooded basement, electrical fires, or just rambunctious guests or kids.
DIY Fixes
As a homeowner, unless you’re rolling in the dough, a great thing to do is learn how to do typical home maintenance and fixes yourself. Hiring a professional for every break, scrape, tear, leak, and more can really add up. Learning and teaching yourself how to do the basics can help you save so much in the long run. As a homeowner you need to become a bit of a “handyman.” You now own the space and don’t have a manager to rely on to take care of every clogged toilet or rouge ant parade in your home.
There are a lot of resources out there that can help you walk through how-to’s on fixing typical repairs around the house. You can check out DIY fixing websites or even Pinterest boards to help expand your new skill sets.
Home Maintenance
If you’re not buying a brand new home or building, there are a few things you should definitely do when you move into your new home.
Change the locks. Though the past homeowners may have given you all the keys they have, there might be a rogue cousin or neighbor who still has a set or two and you don’t want to run any risks. Install new deadbolts and even handle locks. You can do this for less than $10 per lock, or you can call a locksmith to have it down professionally. If you supply the new locks, the locksmith will generally only charge about $20 to $30 per lock for labor.
Check the insulation in the attic. If there isn’t enough, install more. This can actually be a money-saver tip too. There should be at least six inches of it everywhere. If it looks damaged, replace it too. A few other great things to do is to check for pipe leaks, replace air filters, clean out vents, air-seal the house, steam clean the carpets, spray for insects and pests, and check the breaker panel and outlets.
These are all great things to do before you move all of your furniture and personal belongings in. They are also things that might have gone unnoticed in an inspection. Once you do a good once-through of the house, start a brand new home maintenance checklist. You can find a template online. This will help you know when to change out smoke alarm batteries, air filters, and to service any home systems. Staying up-to-date on your home maintenance can help you to avoid any big repairs or disasters in the future.
Being Married to Your Mortgage
Too many homeowners think about their house as an investment instead of a cost-of-living. Your house is not an investment unless you can afford to give it up! This is not the case with most homeowners. Prior to getting a mortgage you should prepare to be spending a large sum of your monthly income, but not every penny. You want owning a home to be an experience that enhances your freedom, not restrict it. If you’re spending every earned penny on your mortgage then very little will be left over for desired non essentials that are still important. For instance, Weekend getaways, eating out with friends, Tour groups, and more. You should be able to have enough for a car or appliance break down (a rainy day fund) and then a little left over for the nice things in life.
by David Glenn | Mar 16, 2016 | CRESTICO
Pet owners enjoy a wonderful experience with their dogs. Dogs provide companionship, loyalty, love and entertainment to their families. One of the issues that these owners face with dog ownership, though, is the fact that their houses can smell like their pet when they are not careful. You may already understand this fact since you presently have a canine companion of your own, and while you may be accustomed to this odor, visitors might find it repulsive and decline your invitations. Luckily, there are a number of different ways to prevent this unpleasant aroma, such as using dog shampoo, cleaning the dog’s belongings, vacuuming the house and other processes. Read our info below to learn additional information about what we mean by all this.
Vacuum Carpeting to Remove Dog Hair
When you vacuum the carpeting regularly, you remove the hair that the dog sheds. I sprinkle a bit of baking soda onto the carpet and leave it set for about 10 minutes before vacuuming. This can eliminate a certain amount of canine aroma in your house. You must not stop with this step if you wish to make your home smell as non-dog as possible.
Immediately Address Accidents on the Floors and Carpet
When the dog accidentally urinates or defecates on the floors or carpet, you should immediately address this spot to reduce the risk of lingering odors. Blot up the urine and do not rub it, especially with carpeting since you will only spread it. on top of this, pick up the fecal matter and dispose of it. Clean the area with appropriate solutions and you can even spray the carpet with a mixture of white vinegar and baking soda to neutralize the odor or apply one of the solutions that are available in your local pet store to accomplish this task.
Periodically Shampoo Carpeting
Along with vacuuming the carpets, you should shampoo them periodically with a detergent that is designed to remove pet odors. You will discover numerous effective brands on the market today. Shampooing reaches deep in the fibers of the carpet and even the pad underneath to eliminate additional odors.
Groom and Shampoo Your Dog as Needed
At times, the cause of a dog aroma in the house is the fact that your dog needs grooming and shampooing. A dirty, unkempt dog will wreak of body odor enough for it to permeate all areas of the house. Brush your dog as necessary to remove loose hairs and mats before you shampoo it. Even though there are a number of pleasant-smelling dog shampoos on the market, I prefer using Nature’s Remedies dog shampoo since it contains essential oils such as argan, lavender, olive, coconut, tea tree, grape seed and avocado to provide a long lasting, clean, fresh scent. Besides giving the dog a nice aroma, it also is effective in repelling fleas and ticks.
Perform Routine Cleaning on the Dog’s Bedding and Other Belongings
Your dog’s belongings such as bedding, toys and bowls can be other sources of doggy odor that will make your house smell just like your pet. For this reason, your need to wash all of these items weekly or even daily in the case of the dog’s bowls for his or her food and water.
Use Herbs, Spices or Essential Oils to Provide a Pleasant Aroma to the House
On top of the above options for ensuring that your house does not smell like your dog, you can turn to essential oils, spices or herbs to provide a pleasant aroma to your home. Examples of these are lavender oil, peppermint oil, cinnamon, cloves and rosemary. You can buy diffusers for the essential oils or simply heat spices and herbs in water to fill the air with their unique scents.
While you may think that just using the right dog shampoo will improve the doggy smell in your house, you can see by the information above that you must do other things along with this action to obtain a pleasant aroma in your house. When guests arrive at your home, they will be shocked to discover that you own a dog when you accomplish this goal. You can host these visitors with a true sense of pride in the appearance of your home along with its non-doggy aroma.
Selling a home is much much easier when you do not have problems with dog smell!
