Do You Know the Cost of NOT Owning Your Home?

 

Do You Know the Cost of NOT Owning Your Home?

 

Do You Know the Cost of NOT Owning Your Home? – Owning a home has great financial benefits, yet many continue renting! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.
Zillow recently reported that:
“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the homeownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”

What proof exists that owning is financially better than renting?

1. The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:
  • Mortgage payments can be fixed while rents go up.
  • Equity in your home can be a financial resource later.
  • You can build wealth without paying capital gain.
  • A mortgage can act as a forced savings account
  • Overall, homeowners can enjoy greater wealth growth than renters.
2. Studies have shown that a homeowner’s net worth is 45x greater than that of a renter.
3. Just a few months ago, we explained that a family buying an average priced home at the beginning of 2017 could build more than $42,000 in family wealth over the next five years.
4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment –along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.
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3 Reasons the Housing Market is NOT in a Bubble

3 Reasons the Housing Market is NOT in a Bubble

 

3 Reasons the Housing Market is NOT in a Bubble – With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble ten years ago.
Last decade, demand for housing was artificially propped up because mortgage lending standards were way too lenient. People that were not qualified to purchase were able to obtain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild.
Eventually, the excess in new construction and the flooding of the market with distressed properties (foreclosures & short sales), caused by the lack of appropriate lending standards, led to the housing crash.

Where we are today…

1. If we look at lending standards based on the Mortgage Credit Availability Index released monthly by the Mortgage Bankers Association, we can see that, though standards have become more reasonable over the last few years, they are nowhere near where they were in the early 2000s.
3 Reasons the Housing Market is NOT in a Bubble | MyKCM
2. If we look at new construction, we can see that builders are not “over building.” Average annual housing starts in the first quarter of this year were not just below numbers recorded in 2002-2006, they are below starts going all the way back to 1980.
3 Reasons the Housing Market is NOT in a Bubble | MyKCM
3. If we look at home prices, most homes haven’t even returned to prices seen a decade ago. Trulia just released a report that explained:
“When it comes to the value of individual homes, the U.S. housing market has yet to recover. In fact, just 34.2% of homes nationally have seen their value surpass their pre-recession peak.”

Bottom Line

Mortgage lending standards are appropriate, new construction is below what is necessary and home prices haven’t even recovered. It appears fears of a housing bubble are over-exaggerated.
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Financial Planning: 4 Reasons to Buy a House Today

 

Financial Planning: 4 Reasons to Buy a House Today

 

Financial Planning: 4 Reasons to Buy a House TodayHomeownership will always be a part of the American Dream. There are advantages to owning your own home (educationalhealthsocial) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:
“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

2. Homeownership “Forces” You to Save

According to SavingAdvice.com, homeownership is a great way to save. Their advice is quite simple:
“Homeownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Homeownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”

3. Homeownership Offers Several Tax Deductions

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership. Here are three:
  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Experts Expect Home Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

Bottom Line

Some are afraid that home values may have already peaked. However, we believe that purchasing a home now will prove to be a sound financial decision for years to come. As Warren Buffet said, “When others are greedy, be fearful. When others are fearful, be greedy.”
 
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Buying a Home? Do You Know the Lingo?

 

Buying a Home? Do You Know the Lingo?

 

Buying a Home? Do You Know the Lingo?Buying a home can be intimidating if you are not familiar with the terms used during the process. To start you on your path with confidence, we have compiled a list of some of the most common terms used when buying a home.
Freddie Mac has compiled a more exhaustive glossary of terms in their “My Home” section of their website.
Annual Percentage Rate (APR) – This is a broader measure of your cost for borrowing money. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower is required to pay. Because these costs are rolled in, the APR is usually higher than your interest rate.
Appraisal – A professional analysis used to estimate the value of the property. This includes examples of sales of similar properties. This is a necessary step in getting your financing secured as it validates the home’s worth to you and your lender.
Closing Costs – The costs to complete the real estate transaction. These costs are in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs, items that must be prepaid or escrowed and other costs. Ask your lender for a complete list of closing cost items.
Credit Score – A number ranging from 300-850, that is based on an analysis of your credit history. Your credit score plays a significant role when securing a mortgage as it helps lenders determine the likelihood that you’ll repay future debts. The higher your score, the better, but many buyers believe they need at least a 780 score to qualify when, in actuality, over 55% of approved loans had a score below 750.
Discount Points – A point equals 1% of your loan (1 point on a $200,000 loan = $2,000). You can pay points to buy down your mortgage interest rate. It’s essentially an upfront interest payment to lock in a lower rate for your mortgage.
Down Payment – This is a portion of the cost of your home that you pay upfront to secure the purchase of the property. Down payments are typically 3 to 20% of the purchase price of the home. There are zero-down programs available through VA loans for Veterans, as well as USDA loans for rural areas of the country. Eighty percent of first-time buyers put less than 20% down last month.
Escrow – The holding of money or documents by a neutral third party before closing. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance.
Fixed-Rate Mortgages – A mortgage with an interest rate that does not change for the entire term of the loan. Fixed-rate mortgages are typically 15 or 30 years.
Home Inspection – A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation.
Mortgage Rate – The interest rate you pay to borrow money to buy your house. The lower the rate, the better. Interest rates for a 30-year fixed rate mortgage have hovered between 4 and 4.25% for most of 2017.
Pre-Approval Letter – A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer. Having a pre-approval letter in hand while shopping for homes can help you move faster, and with greater confidence, in competitive markets.
Primary Mortgage Insurance (PMI) – If you make a down payment lower than 20% on your conventional loan, your lender will require PMI, typically at a rate of .51%. PMI serves as an added insurance policy that protects the lender if you are unable to pay your mortgage and can be cancelled from your payment once you reach 20% equity in your home. For more information on how PMI can impact your monthly housing cost, click here.
Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, to help you find your dream home, to negotiate any of the details that come up, and to help make sure that you know exactly what’s going on in the housing market. Real estate professionals can refer you to local lenders or mortgage brokers along with other specialists that you will need throughout the home-buying process.

The best way to ensure that your home-buying process is a confident one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher,’ and who puts your family’s needs first.

 
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Tax Return Depressing? Owning a Home Could Help

 

Tax Return Depressing? Owning a Home Could Help

 

Tax Return Depressing? Owning a Home Could Help – Many Americans got some depressing news last week; either their tax return was not as large as they had hoped or, in some cases, they were told they owed additional money to either the Federal or State government or both. One way to save on taxes is to own your own home.
According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.
Here are four items, and a quote on each, from the Briefing Book:

1. Mortgage Interest Deduction

“Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage. The deduction is limited to interest paid on up to $1 million of debt incurred to purchase or substantially rehabilitate a home. Homeowners also may deduct interest paid on up to $100,000 of home equity debt, regardless of how they use the borrowed funds. Taxpayers who do not own their home have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.”

2. Property Tax Deduction

“Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.”

3. Imputed Rent

“Buying a home is an investment, part of the returns from which is the opportunity to live in the home rent-free. Unlike returns from other investments, the return on homeownership—what economists call “imputed rent”—is excluded from taxable income. In contrast, landlords must count as income the rent they receive, and renters may not deduct the rent they pay. A homeowner is effectively both landlord and renter, but the tax code treats homeowners the same as renters while ignoring their simultaneous role as their own landlords.”

4. Profits from Home Sales

“Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale. But homeowners may exclude from taxable income up to $250,000 ($500,000 for joint filers) of capital gains on the sale of their home if they satisfy certain criteria: they must have maintained the home as their principal residence in two out of the preceding five years, and they generally may not have claimed the capital gains exclusion for the sale of another home during the previous two years.”

Bottom Line

We are not suggesting that you purchase a house just to save on your taxes. However, if you have been on the fence as to whether 2017 is the year you should become a homeowner, this information might help with that decision.
Disclaimer: Always check with your accountant to find out what tax advantages apply to you in your area. 
 
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Celebrate Holidays In Your New Inland Empire Home

Celebrate Holidays In Your New Inland Empire Home

Holidays are one of the most exciting times of a year due to many reasons. It is a special occasion when we get to be together with our families, entertain ourselves, and exchange gifts between each other. If you ask almost any person in the United States what is his favorite part of a year, he will most likely say that it is Christmas. There is no doubt that holidays play an important part in our lives and revolve around a good time. But what about buying a new home during holiday season? Is it a good idea to make a new purchase and move in to your new home during Thanksgiving or Christmas? It actually might be and for many reasons.

Higher Or Lower Prices During Holiday Season?

Most of the sellers avoid selling their homes during holidays season because days are shorter and buyers are usually more occupied with their family matters. Due to this reason a lot of sellers decide to hold back and postpone putting their homes for sale. But does that means that limited supply of homes means that holidays are a bad time to buy your new home? Not necessarily. Sellers that do decide to sell their home at the end of the year are usually under pressure to make a sale and very likely give a good deal to a buyer. This basically means that you can find a bargain and spend holidays in your new home. 

Why You Should Buy New Home In Holiday Season?

There are many reasons why holidays are a perfect time to buy your new home. One of them is that Thanksgiving or Christmas take place at the end of the tax year and it is your last opportunity to deduct home purchase costs from your taxes. In addition, sellers that decide to sell their homes during this time are in the state of must-sale, meaning that they are in urgency to sell their home due to financial reasons or other personal reasons. This results in lower prices and room for negotiation. The same goes with buyer advantage. Just because there is less buyers than usually looking for home during this time of a year, sellers are more willing to negotiate with you due to lower demand on their home. Holiday season can be a win-win situation for home homeowner and a buyer. As a buyer you can spend these holidays in your new dream home.

Renters that are eager to become homeowners, can take advantage of holidays season to make their dream come true. At Celina Vazquez Home Selling Team we specialize in Inland Empire real estate market and help many buyers receive the best gift of a holidays: a new beautiful home. 

All of the home buyers interested in holiday opportunities can keep up on latest news through our website www.celinavazquezrealtor.com. In case of any questions you can contact us by email at celinalvz@gmail.com or phone a 909-697-0823 and we will be able to assist you.

Celina Vazquez 

Home Selling Team

We Look Forward To Connect With You Soon!

Celina Vazquez Home Selling Team

909-697-0823

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A Beauty For Lease In The Hunter’s Ridge Area Of Fontana By Celina Vazquez-Realtor

FOR RENT SINGLE FAMILY HOUSE IN FONTANA

Magnificent single family house 4 Bedroom, 3 full bathrooms and 3 car garage with direct access. This gorgeous single family house in North Fontana, Hunter’s Ridge Area is available For Rent. With top-line carpeting, tile and hardwood floors, this single family house For Rent is ready to move-in. Large living room/dining room. Family room with cozy fireplace and open concept to the large kitchen. Located in the Hunter’s Ridge Area of Fontana, this gorgeous house has a large kitchen with granite counters, 5 burner cook top, multi-cycle dishwasher, built-in microwave and oven. The breathtaking master bedrooms with an opulent master bathroom. Double vanities, separate shower and oval tub. His and hers closets with mirrored doors. Large loft area with hardwood floors, window shutters and wood blinds throughout. Nice landscape backyard with automatic irrigation system. This Fontana home For Rent is ready to move in and waiting for you.

CelinaVazquez-Realtor-15204 Haoney Pine Ln-Front-Fontana-909-697-0823

15204 Honey Pine Ln., Fontana, CA 92336

For Rent $2495 per month.

If you are looking to buy, sell  or rent give a call to Celina Vazquez she will be taking care of you.

Realtor/ Real Estate specialist in: Listing Homes, Selling Homes, Buyer Representations, Investment Properties, Residential Property Management, Luxury Homes.
Serving the areas of : Eastvale, Rancho Cucamonga, Jurupa Valley, Mira Loma, Ontario, Fontana, Corona, Norco, Riverside, Montclair, Upland, Rialto and surrounding areas.

Celina Vazquez -Realtor-909697-0823
Celina Vazquez -Realtor-909697-0823

 

Celina Vazquez is a Real Estate Professional at Keller Williams Rancho Cucamonga Realty that specializes in the Eastvale, Jurupa Valley, Mira Loma, Rancho Cucamonga, Ontario and surrounding areas. With (over) 10 years of experience as an operation manager for a Real Estate & Property Management Company, she has a strong work ethic, extensive community and market knowledge, and effective negotiator skills.

Cruising The City of Ontario

Cruising The City of Ontario, Euclid Avenue. From time to time I go back to my past, how I do that. Well, to begin with the City of Ontario brings lost of memories to me. I grew up in Ontario and for that I love to go to Euclid Avenue and drive up and down looking around, checking Chaffey High School and all the homes that are around the High School.