Date Archives: July 2018

To buy a home, or to not buy a home. It's a common debate for many people. There's no denying that renting is basically paying for someone else's monthly mortgage without receiving any equity from the property, but that does not always mean that buying a home is the better option for each individual. Everyone's situation is different, and home buying can be expensive. People's lifestyles also change and their motives for wanting to buy a house are just as varied. Determining whether or not it's worth buying a home has a lot to do with individual specifics. It's highly recommended to speak with a real estate agent who can give you detailed real estate advice based on the information you provide. However, the general costs and rewards of home buying can be found right now to help steer you in the right direction.

Maintenance Costs

When you buy a home, you are taking on the responsibility of maintenance costs. They're inevitable for all homeowners, but they can be significant depending on the specific property. Before buying a home, maintenance costs and unexpected repairs must be considered. It's recommended to hold back 1% of the home's value annually for maintenance and appliance replacement, but that does not cover unexpected repairs.

Property Taxes

Property taxes can be a significant expense. The actual amount can fluctuate, and this must be considered before buying a home. There are a variety of factors to determine the amount of property taxes, such as the area, state, and local budget cuts, renovations, as well as many other things.

House Insurance

Many mortgage loan lenders require homeowners to have house insurance. Unlike rental insurance, which covers possessions, homeowners' insurance covers both possessions and the cost of the property. Although it's an extra expense, it's beneficial to have even if it is not required. As for the cost of home insurance, it depends on the specifics, but you can get an estimate by dividing the home's value by 1000, and then multiplying that by 3.5 (HomeGuides).

Tax Deductibility

A benefit that comes when you buy a home is the tax deductibility of mortgage interest. This number is hard to estimate from a general standpoint because it greatly depends on your specific financial situation. However, owning a home can provide you more savings than if you were to rent, simply because of the tax deductible.

Home's Value Appreciating

The appreciation of a home's value is generally high. However, this can change rather quickly depending on the housing market, as well as many other factors. ABC News estimates home prices will appreciate around 3%, according to the historical average. The thing that many people forget is that as a home's value increases, the cost of maintenance and insurance does as well, due to inflation.

In terms of liquid money, home ownership won't bring you much of that. However, buying a home does have the potential to bring you a high return on investment. More importantly, your monthly bills go towards something you own. When renting, you're essentially paying someone else's mortgage without receiving any ownership. Many additional factors also need to be considered when determining if buying a home is worth it, such as whether you want to buy a home as an investment property, plan on flipping the house, or want to retire in it. The first step is to answer the inevitable question, "Can I afford a home?" and these general guidelines can help you determine that.

10 Tips for Turning Up the "Wow" Factor in Your Home

Owning a home requires a lot of work. Fixing up the house can also get expensive. Tackling a few DIY projects is a great way save a lot of money and add value to your property.

1. Storage, storage, storage
   
   
   
   
   
   
   
   
   
   
   
   
   A common complaint among homeowners is that there is never enough storage. One easy solution to maximize the spaces in your home is to look up. For example, there's usually a lot of empty space in the laundry room above the washer and dryer. Hang galvanized pipe fittings  from the ceiling so that you can hang clothing. After cleaning and spraying the fittings with metal primer, paint them to match the room and then attach them to the ceiling. Other ways to use high areas of your home include building shelves where there was previously unused wall space.
   
   
2. Don't forget your patio
   The summers are the perfect time to start an outdoor project. There are thousands of DIY patio projects online, including tips for how to build a trellis or a fire pit. Some projects are more labor intensive than others, so be realistic about how much time you have to devote to executing your idea.
   
   
3. Plant some bushes or trees
   
   
   
   
   
   
   
   
   
   
   
   DIY projects can be extended to the garden. Plant a row of evergreen shrubs or trees along the side of your house for privacy or as a windscreen. Many shrubs or trees grow many feet per year, which means that within a couple years, you'll have one of the most enviable homes on the block.
   
   
4. Outfit your kitchen to your style
   Thankfully, there are plenty of DIY projects that not only can improve your home, but the results are just as attractive as big-name pieces, such as a bamboo knife block for your kitchen. All you'll need is a piece of reclaimed lumber, and then you stain it.

5. Add insulation to your attic
   
   
   
   
   
   
   
   
   
   Although it might not be the most impressive project, adding insulation to your attic can save you an enormous amount of money for years to come. Laying insulation is a very easy DIY project. The materials are inexpensive and can be purchased at most home improvement stores.
   
   

6. Turn up the lights
   
   
   
   
   
   
   
   
   
   Although it's easy for homeowners to grow accustomed to sitting in dimly lit areas, adding lighting to brighten up a space is a no-brainer. You can add some lamps, or for a relatively simple project that takes only a few minutes, install a dimmer switch.

7. Install wallpaper
   
   
   
   
   
   
   
   
   
   Painting is passé and wallpaper is in vogue. Wallpaper can be a great investment for a living room or bedroom. There are more designs than ever available on the Internet. That said, although painting isn't currently in style, it also never gets old. A simple paint job over a greying white wall really brightens up a space.

8. Add some flair to your door knobs
   Although a doorknob doesn't sound like the most interesting element of a room, it can easily become a beloved art piece. Decoupage is a colorful old-world look, but it's also expensive.

9. Turn a closet into a room
   While most people feel they don't have enough space, there are some folks who have unused closets. It's easy to take a closet door off its hinges and convert the space into a small office. Paint the walls a bright color, add shelves, great lighting and a small desk. Voila, you've got the home office of your dreams!

10. Paint your front door
    
    
    
    
    
    
    
    
    
    
    
    
    
    Make your home as inviting as possible by painting your front door a color to match your personality. If your home is light grey or white, consider a bright red or blue door to make it really "pop." For darker-colored homes, try canary yellow.