Financial Benefits of Downsizing

 You do not have to wait to downsize just because you become an empty nester. Sometimes downsizing to a smaller home can have its advantages no matter what stage of life you are currently in. Here are some nice advantages for those who want to downsize.

1. More Financial Freedom

A smaller home will have a less expensive sale price than a larger home in the same area. If you have a good bit of equity in the home you are downsizing from, you might even be able to purchase a smaller home outright. If this is the case, you do not have to worry about a monthly mortgage payment. If you cannot purchase a smaller home without a mortgage, then you will more than likely get a good chunk out of the equity for a large down payment. The larger down payment will allow you to enjoy a smaller monthly payment, low-interest rates and more cash each month.

2. Greater Ability to Diversify Your Assets

The wise old saying, “don’t put all your eggs in one basket” can apply to your assets as well. If you have all of your cash tied up into residential real estate and the housing market crashes, you could stand to lose a lot of money. If you buy a smaller house, you will have extra cash that you can invest in assets other than just real estate.

3. More Energy Efficient

A smaller home, equals less square footage to heat and cool and light. This not only helps you save money, but you also reduce your carbon footprint.

4. Less Time Spent Cleaning

A bigger home makes for a bigger space to have to clean. Even if you do not use all of your rooms on a daily basis, dust still gathers in the space. It takes less time to clean a smaller space, making way for other things to enjoy.

5. Cozy Atmosphere

You can feel lonely in a big space but a smaller home feels cozy and homey. Having one family room area is a great benefit because it gives you a lot of time to bond with loved ones. A smaller home encourages closer relationships with those you live with.

If you are looking to downsize, contact a local real estate agent who can help you find the right home for your needs. Remember you do not have to be an empty nester to downsize into a smaller home.

Click Here For the Source of the Information.

Interest Rates Still Low for New Home Buyers

Real estate professionals have expressed concerns as to the state of the interest rate in today’s housing market because there are rumors that the interest rate is about to be raised by the Federal Reserve (The Fed).  Because of these fears, many homeowners have hurried up to refinance their homes with these historically low interest rates while home buyers have been “coming off the fence” more rapidly than normal to buy a new home.  These worries can be set aside for now as The Fed has decided not to raise interest rates during their last meeting citing a weak global economy, low inflation, and unstable financial markets.
However, there are some aspects to consider when deciding whether or not to buy a new home as soon as possible before interest rates “go back up.”  The first point is that even if interest rates do go up, they are not forecast to go up by much upon raising.  The increase in the interest rate will STILL be lower than any record of interest rate lows in the past.  This means that you will still be able to maximize the amount of money you use to buy your new home with lower interest rates.

The second aspect to consider is that the increase in the interest rate means that the U.S. economy and job market are getting better which means more and better jobs for home buyers interested in buying a home. Waiting until you have the right job and the financial ability to buy a home is a better choice than “squeaking by” to be able to buy a home at a lower interest rate with no stability in your financial future.

Finally, when The Fed does raise interest rates, this is good for investors and employees with retirement accounts because interest rates for these types of savings and money making accounts go up as The Fed raises the interest rate.

Even though The Fed’s decision is to not raise interest rates at this time, interest rates are expected to go up as soon as the end of 2015.  Whether they go up or not, now is the time to take advantage of the incredible financing offers to buy your home while interest rates are low, credit restrictions are easing, and down payment assistance has once more been established by the Department of Housing and Urban Development.

Click Here for the Source of the Information.

10 Reasons to Buy a New Home

With the house market in full recovery, and home inventory tightening up nationwide, you as a home buyer have a very significant choice to make when deciding the type of home that you would like to buy.  Location is always important, and price is normally a deciding factor, but there is one other huge consideration you should make when purchasing your home – choosing to buy a new home vs. buying an existing home.  Below are 10 reasons to buy a new home vs. an existing one.

1. Tax Benefits:  Each month as a renter, you spend about the same amount of money as a mortgage and get none of the benefits while your landlord pockets your rent, increases equity, and writes of property tax costs.  As an owner of a new home, you will receive all of the tax benefits of owning your own home PLUS, if you have savings from a retirement IRA account, you can pull out $10,000 from this account – tax free – as long as the money is used for a down payment on your home, and you are a first time home buyer.

2. New Home Warranty: Buying a new home vs. buying an existing home gets you brand new everything – windows, doors, paint job, carpet, appliances, and all of your lighting and trim.  When you buy an existing home, you may have the unwanted chore of constantly replacing worn out parts of your home.  Also, your new home comes with a 1, 2, 5 warranty per Louisiana law which protects the home in its entirety the 1st year, all major structural components for 2 years, and framing and infrastructure for 5 years.

3. Repairs and Maintenance: In addition to replacing components, existing homes come built-in with a honey-do list.  You could be repainting the interior and exterior, upgrading / renovating the kitchen cabinets and countertops, and replacing door knobs, hinges, and other pieces and parts of the home.  With a new home, you don’t even have to worry about things falling apart for a few years at least if you have purchased a quality-built home in St. Tammany Parish.

4. Energy Efficiency: Green building has become standard for many home builders in St. Tammany Parish, and Ron Lee Homes is a Certified Green Builder by the National Association of Home Builders.  By installing all green building features, you will not only get the benefit of owning a brand new home, but you will save money in the long run with lower energy bill as well as the environmental satisfaction of reducing greenhouse gases.  With previously owned homes, especially homes older than 1980, you will be dealing with less efficient home openings, insulation, and HVAC systems which will increase the cost of heating and cooling your home.

5. Smarter, Safer, Well-Built: New systems installed in new homes now come with smarter and better working fire alarms, security systems, and smoke detectors.  There is even certain types of primer boards, plywood, and sheetrock that is fire resistant to withstand a fire event.

6. Credit and Financing: Buying a new home allows your mortgage company, lender, or banker more options in choosing the right loan for you.  Especially if you are investing wisely, your home may appraise for a higher amount allowing more equity and better interest rates.

7. Low Interest Rates: With all of the worry that the Fed is about to increase interest rates, rates are historically low and are still at record-breaking lows compared to any previous year of buying a new home.  Because you get to write the interest off on your taxes, it is a win-win situation when buying a new home.

8. Holding Its Value: Because you are buying new instead of previously owned, your home is in better shape and will last longer as long as you chose the right builder.  No matter how wonderful a previously owned home is, it will still “fall apart” eventually faster than a new home because it is older and more worn out.

9. Avoiding Health Risks: With the new information about lead paint and its effects as well as asbestos, many people are very aware that older construction can contain these hazards.  As long as you have hired a quality builder to build your new home, you will never have to worry about hazardous construction materials that could drastically affect your health.

10. Fun Choices: When building a new home, you get to put part of your personality into it by making selections such as cabinetry, countertops, paint, siding, flooring and much more.  In addition to being a part of building your own home, you can take comfort in knowing that you are making the biggest financial investment of your life – one that will give you equity and security for the future.
If you are ready to build your new home in St. Tammany Parish, Contact Ron Lee Homes, a custom home builder, at 985-626-7619 or E-mail Info@RonLeeHomes.com.

Click Here to View This Article On Our Blog.