To Buy or Rent….that is the question!

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It’s one of those major questions you’re bound to ask yourself at some point and probably the biggest decision from a financial standpoint you’re going to make. The answer though isn’t always a simple one, there are a variety of factors to take into consideration. Ultimately, your decision will be based on what makes the most financial as well as emotional sense for your particular situation.

There is a general belief that owning a home is the ultimate goal, the key to the “American Dream.” And while there are many great reasons to support this thinking, numerous pros and cons should be weighed before signing on the dotted line. And regardless of whether you’re a first time home buyer or a repeat purchaser, be sure to ask yourself a few important questions before contacting a real estate agent to get started.

Thinking about buying, consider the following…

Pros

  • Building equity over time which creates stability and security for your family

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  • Tax benefits – great news, now you can deduct many home-related expenses
  • Potential for rental income
  • More creative freedom – you won’t need to ask anyone’s permission (well maybe your spouse) before tackling a new project
  • Unlimited pets (if you want) – there isn’t a no pet policy when you own your own home

Cons:

  • Potential for financial loss
  • Responsible for all maintenance and repairs

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  • Higher upfront costs

Considering renting…

Pros

  • You’re not responsible for maintenance and repairs
  • No real estate taxes to pay
  • No large down payment
  • Credit requirements are less strict
  • Some utilities might be included in the rental agreement
  • Relocating is easier

Cons

  • No chance to earn equity on your property
  • No tax benefits
  • Limited housing security

Regardless of whether you buy or rent these costs you just can’t escape!

Buying

  • Down payment
  • Home appraisal fee
  • Home inspection fee
  • Property tax
  • 1st years homeowners insurance
  • Any additional closing cost fees

Recurring costs

  • Mortgage loan payments
  • Property taxes
  • Homeowners insurance
  • Utilities
  • Maintenance
  • Private Mortgage Insurance (PMI) – if you put down less than 20% of the purchase price you’ll have this added monthly payment

Renting

  • Security Deposit
  • First month’s rent
  • Moving Costs

Recurring Costs:

  • Monthly rent
  • Renter’s insurance
  • Utilities (sometimes, certain utilities are included in the rental fee)
  • Laundry (not all rentals offer washer/dryer hookups)

As you’re going down your checklist, consider the following questions

  1. How long do you plan to stay? – The longer you anticipate you’ll be there the better off you are buying. Buying and selling a home requires a good deal of time and money so take that into consideration if you plan to stay less than five years.

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  1. Would you be happy staying longer than planned? – For first time home buyers, the idea of a starter home sounds great, but what if the time comes when you’re ready to sell and it’s not a sellers’ market? Or other unforeseen circumstances arise and you are unable to move when you thought you would?
  2. How stable is your job and your life? – If things both professionally and personally are not stable you might want to reconsider locking yourself into a big financial commitment at the moment.
  3. How do the monthly costs compare? – Do the math and be realistic. Consider all of the monthly costs that go along with owning verse renting.
  4. Do you have enough money for a down payment? – Sure you can get away with putting down less than 20% but that means you’ll be paying PMI along with a higher mortgage payment. Plus, sellers might choose offers with higher down payments and less contingencies.
  5. Do you have savings to pay for repairs? – All homes require repairs at some point, regardless of whether they’re brand new or not. If you’re leaning towards purchasing make sure you have some extra cash in your account for any unforeseen occurrences.

Whatever route you choose, finding the best real estate agent will help make either process as smooth and efficient as possible.

Jumping into Spring with Tips to Get Ready for a New Season

Spring has sprung and we couldn’t be happier to start packing away the winter clothes, snow boots and basically anything winter related. It’s time to embrace this new season with an appreciation for all it promises to bring. It’s a known fact that the shorter days and colder weather can make you feel down; there’s even a name for it, season affective disorder (SAD, an appropriate acronym). As a result, we are ready to not only dust off of our state of mind but also get our home in order. Just like us, they take a beating from the cold, so it’s important to take care of things we’ve had to neglect due to the weather.  Tackling these projects now will ensure you’re ready to enjoy spring before moving into summer!

Since the exterior of our homes bear the brunt of the cold season starting outside is best:

  • Check all windows and doors – the cold weather can break down the caulking and stripping that seals your doors and windows so take a walk around your home to check for any damage. Replace any old, cracked caulk and/or stripping for proper insulation. You don’t want to let the warm air inside especially when you’re running your air conditioner this summer!
  • Clean out gutters and downspouts – During the winter leaves and other debris can accumulate inside so it’s important to clean out and ensure proper functionality. Gutters direct water away from the perimeter of the home and with rainy months ahead you don’t want clogged gutters, they’ll only cause trouble.

Gutter

  • Service your air conditioner –To ensure you’re prepared for the hot summer days that follow spring, it’s a good idea to begin servicing your air conditioners Begin by replacing the filters to ensure the efficiency of the unit. Clogged filters make it difficult for the unit to work properly. For anyone with allergies, consider replacing the filter about every 60 days or so. For the more complicated servicing consult an HVAC professional at least once a year.
  • Landscaping – Check the surrounding areas of your home, both front and back, and sweep away any old leaves, debris, and tree branches. If your yard contains any bushes or plants give them a trim; most likely they’ve gotten a bit overgrown during these last few months. And don’t forget to replace that winter ravaged door mat for a fresh new look.

Trimming

  • Trim and siding maintenance – Icy and windy winter conditions can wreak havoc on the exterior which can be fragile. Contact a professional if you spot any damage.

Once you wrap up outside, here are some inside spring cleaning tips to get your home in order:

  • Replace damaged or torn window screens – For anyone who likes to keep their windows open it’s important the screens are in perfect condition. This will allow the maximum amount of fresh air to get into your home as well as keep insects like mosquitoes and flies outside where they belong.
  • A deep clean – Give extra care to cleaning your windows; take down and launder the window treatments, dust off the blinds, and clean them with a damp sponge. Carpets and rugs take a hit during the winter months so a deep steam clean will revitalize them. You can either hire a professional service or if you have some extra time, there are places that will rent the machine to you on an hourly basis.

Window Cleaning

  • Test all emergency systems – Check all of your systems (house, smoke, carbon monoxide alarms) to make sure they’re working properly. These units should be tested regularly and spring and fall maintenance are the best times to do this.
  • Ceiling Fans – You might not realize this but the direction of the blades makes a difference. In addition to giving the fan a good cleaning, you’ll want to change the direction of the fans to blow air down to give the room a breeze and make it feel cooler.
  • Store dry goods in airtight containers – With the warmer weather insects return so it’s important to store all your dry goods in sealed containers as well as wash out your pet’s bowls after every meal.

Food Storage

  • Organize, organize, organize – File, shred, and eliminate any clutter. Clean out cabinets, toss anything old such as medicines and cosmetics, and donate or discard get rid of any unnecessary items you don’t use or need.