Thursday, January 24, 2019

3 Reasons Americans Count on Their Homes After Retirement




Retirees who own their homes outright are often at an advantage over their renting—
and retired—counterparts. There are two reasons for this: their housing costs are generally
lower, and they have access to safety-net cash in the form of home equity.
However, all homeownership is not created equal. For example, if you move often, owning
a home outright by age 62 can be challenging.
 
Since the big goal for retirement is to eliminate as many expenses as possible, erasing
a monthly housing payment is optimal. Having a long-term financial plan, including what
homeownership looks like in retirement, is extremely important. Renters who plan on
staying in the same general area for years to come should consider buying.
1. Benefit of eliminating monthly payments:
The twin bridesmaids of finances are income and expenses. When people retire, the money
coming in usually shrinks, which means so should the money going out. A mortgage payment
is one expense soon-to-be retirees should try to get rid of. If you can be mortgage-free by the
time you reach retirement, you'll be in a good position.
Mortgage-free retirees can save hundreds or thousands of dollars each month. Even with
property insurance, and taxes, the cost of owning a home is often less than renting.
Not only can retirees save on their housing costs; they can also make money on their homes.
Retirees who travel can earn money while they're on vacation through sites like Airbnb.
Another option to get extra cash flow is to rent a room. Downsizing can also save you money.
Going from a large family home to a cozy condo or smaller house can reduce utility costs as
well as allow you to cash out some equity in your home to fatten your nest egg. For people
not ready to sell, there are other options that allow you to tap the equity while keeping the house.
2. Benefit of having access to home equity, if needed.
There are several ways homeowners can tap the equity in their home without putting up
a for-sale sign; two of the most common ways are a cash-out refinance and a home
equity line of credit, or HELOC.
Equity-rich homeowners who want to lower their mortgage interest rate might consider
a cash-out refinance.  
A cash-out refinance is almost like selling your house to yourself. The bank would cut you
a check for the equity, which is the difference between what you owe on the house and
the market value. If your home is worth $200,000 and you owe $100,000, then you have
$100,000 of equity in the home.
Banks usually limit the amount you get to 80 percent of the total equity. That means with
$100,000 in equity, the bank might give you $80,000. The amount you qualify for is usually
based on income, credit score and other determining factors.
Now comes the tricky part: When you do a cash-out refinance, you'll get a new mortgage.
If your interest rate is high because of poor credit or market conditions and you think you
have a chance of getting a lower interest rate with a new mortgage, then a cash-out refinance
might be an appealing way to access your equity; however, if your mortgage interest rate
increases with a new mortgage, then you should consider other options, such as a HELOC.
Something else to keep in mind is the fact that a new mortgage usually means going back
to square one if you choose a longer term. If your house is a few years away from being
paid off, restarting the clock is probably not a good financial move.

3. Even with a mortgage, there are  liquidity options.
For people who want to keep their homes and existing mortgages while tapping their
home equity, one alternative is a HELOC.
The benefits of HELOCs are that you only pay on what you use and the interest is tax-deductible
if you use it to repair or upgrade your home. For retirees who want to retrofit their homes to
make life easier, such as installing stair lifts, grab bars and handrails, a HELOC could be a good
way to fund those upgrades and get a tax break. It is important to remember that once you use
that equity, it will likely take years and even decades to rebuild it.

The dual benefits of lowering your living expenses and having access to cash in emergencies
are great reasons to sail into retirement without a home loan springing a leak in your budget.


Wednesday, November 14, 2018

Tips to reduce energy consumption during holidays



Trying to make your home eco-friendly through the holidays doesn't have to be a burden.
It's the most wonderful time of the year! The smell of pine and cinnamon, cookies baking
in the oven, lights twinkling inside and outside your home, and… An enormous electric bill.
Ouch...
If you're thinking about having a greener holiday season, try the following tips:
Use Better Lights
Try LED or energy-efficient bulbs instead of traditional ones. Incandescent lights draw up to
90% more watts than LED lights, so switching to LED strands—or going with wreaths, bows
and lawn ornaments that don't use energy—can save you a ton.
Use Smart Plugs
It's easy to forget to unplug decorations and lights, but doing so can make a real ding in your
monthly budget. That's where smart plugs come in handy. Some smart plugs can also be
programmed to run on a timer or manually from an app on your smart device. When you're
toasty in bed, you can turn off your lights to save on energy. Plus, if you're away on vacation,
you can pull a "Home Alone" and make it look like you're home, which can help deter holiday theft.
Cook Wisely and in Batches
Holiday cooking is one of the best parts of the season. This season, when you're making lots
of cookies, roasts and goodies, remember to bake in batches so you don't waste energy heating
and re-heating the oven.
Also, use appropriately-sized cookware. Glass or ceramic pots and pans can be heated to 25 degrees
less than recipes recommend, and cast iron retains heat easier, making these types of cookware
a good option to help you save more on energy costs. And don't forget that the oven will act as
a temporary space heater when you're cooking, so be sure to turn down your thermostat.
  
Carols around the fireplace, anyone?


Tuesday, September 18, 2018

Buying a Vacation Home



Pretty often people returning from vacation trip start thinking about buying a vacation home rather
than paying for a hotel or a rental place. Unless you're fairly wealthy, you'll need to make sure
you can commit to buying a seasonal home before you start shopping around. Ask yourself the
following questions:
1. Can you afford to own a vacation home? If the answer to that question is yes, it is probably
wise to buy. Remember, the purchase price is only part of the cost of owning a vacation home.
You'll have to pay utility bills, maintenance fees and insurance premiums. And depending on
where your home is located, you could also be responsible for paying homeowners association
fees.
To decide whether you have enough money in the bank for a vacation home, ask yourself the
following questions:
  • Do you have emergency savings (at least three to six months' worth of take-home pay)?
  • Can you make a 20 percent down payment?
  • If you have kids, have you already put aside enough money for a college fund?
  • Can you still put away enough money for retirement?
  • Does it fit in with your long-term investment strategy and financial goals? If you answered
  • "Yes" to most of these questions vacation home is right for you!
2. While visiting an area that might become the location of your future home, do your research
and take the time to understand what the surrounding area has to offer. You'll also want to make
sure you visit during different parts of the year. So that you can get a feel for what it's like to live
there during different seasons. For example, when you retire, the amenities included in a vacation
home may take a backseat. Having access to a hospital and activities that improve your overall
health and well-being may be critical.
3.  Buying a seasonal home could be worth considering if you know how you're going to use it.
Maybe you view the home as an investment property that can serve as an additional source of income.
Maybe you've decided that you're going to find guests online through a website like Airbnb or Vacation
Rental by Owner (VRBO). If that is the plan, you'll probably need to hire someone to clean your home
and check for signs of damage and theft before new guests arrive. Keep in mind that rental income
will be taxed, and that you should be prepared to pay taxes.
For many people, the decision to purchase a vacation home is serious. If you decide to take that leap
of faith and you already have homeowners insurance, make sure you find out whether your current
policy will cover a second home. Also, if you intend to rent out the property, consider purchasing rent
loss insurance. It covers the loss of rental income following natural disasters and catastrophic incidents.

Sunday, September 9, 2018

Finding Your Starter Home



Tips to Help You Find a Starter Home


A starter home isn't necessarily your forever home. Be prepared to make some compromises to get
your foot in the homeownership door. Be open-minded about the location, size and condition.  


Look for an older home in a well-established neighborhood. Resales typically cost less than
brand-new homes. Older homes typically need more maintenance and repairs, which offset some
of the savings; however, buyers who choose a used home might be able to do repairs and renovations
over time, pacing themselves to make the cost manageable.


Buyers who sacrifice location for affordability can find themselves in a neighborhood far from major
job centers with a long daily commute and expensive transportation costs. Sometimes that
trade-off makes sense, but not always


When you're up against stiff competition, working with an experienced real estate agent is key.
A good agent shines when it comes to negotiating the deal and writing a strong offer. Your agent
may suggest certain strategies to win in a competitive market, such as limiting contingencies or
writing a personal letter.


When a well-priced starter house comes on the market, the quest to buy it can be extremely competitive.
To entice sellers offer above asking price (if you can afford to), keep repair requests to a minimum, or allow
the sellers more time to move.

To search for homes anywhere go to https://homesalesneworleans.gardnerrealtors.com/

Monday, July 23, 2018

What Is a Perfect Home?




When searching for a home it is important to identify what "perfect" means to you. The easiest way to start is by making a list of priorities. What is a "must-have," what would be nice to have, and what isn't important?  
We have all lived in places that at first glance we thought were suitable, only to find out later that the kitchen we initially thought was cozy was actually far too small for our needs, or that the seemingly bright living room only gets direct sunlight for a two hours a day.
Before scouting the market you need to know what you can afford.  Getting pre-approved for a mortgage first will make the whole process much easier. A trap that many buyers fall into is assuming that the maximum amount they can borrow is what they should spend on their new house. Look at what your monthly payments would be, and ensure that your budget factors in all ongoing maintenance costs,  as well as room to put funds aside each month for emergency maintenance.

Experienced Realtor is your key to success. Having the right professional working for you can be the difference between a smooth buying process and a costly disaster. Hiring a real estate agent provides numerous advantages. An experienced REALTOR® can find properties that you may otherwise miss, negotiate prices and recommend lenders.  Experienced Realtor is also able to answer any questions you may have about a property, as well as any you may not have even thought to ask.

For more information or to search for homes visit https://homesalesneworleans.gardnerrealtors.com/

Thursday, July 12, 2018

How to Sell your Home in No Time




Here are four top tips for getting your house ready to list for a ton of interest and potential bids:

Give Your Yard Attention
Cleaning up your yard and making it look welcoming will attract more potential buyers; curb appeal can add as much as 5 percent value to your home—and there are many improvements that can give you a large return on investment. Some of the best options are upgrading your mailbox, fixing your siding and adding walkways.
 Paint Inside and Out
Buyers want to see a fresh, clean space when they visit your home. By painting inside and out, you have the chance to apply a neutral tone throughout the home. Agents often tell sellers to use a bold color on the front door to add appeal and draw the eye to the entrance. Consider hiring a professional painter to help ease the process.
 Price Your Home Intelligently
The right sales price for your home is often the best way to sell your home quickly. If priced too high, you may scare buyers away before they even come to an open house, but, if priced too low, you may lose out on money. Work with your agent to price your home appropriately for your location! 
 Depersonalize the Space
Buyers want to look at a home as if they are moving in. Staging experts suggest that you rent a storage room and pack up everything that shows your family, pets or lifestyle until the home sells. Another idea is to hire a professional staging company to give you some tips.  They will provide insight into the colors, accent walls and accessories that'll play up the characteristics of your home, making for a great house showing. If you follow these tips, you should be on the road to selling your home in no time!

Sunday, June 17, 2018

Choosing a Moving Company is Important


Personal belongings are important to you, and, as such, it is important to hire a moving team that will do what you expect. Here are questions to ask any company you're seeking to employ:

Do you have any references?
References or a link to online references are very informative, and will help you to form an opinion of how reliable the service will be.

What specific services do you offer?
Moving companies vary in terms of what they're willing to do for you. There are some companies that might refuse to move large items, such as grand pianos, and only provide the lifting and packing of smaller items. Or you might only want a company to do one or two things for you, such as load up a truck you've rented yourself.

Do you offer in-home estimates?
Knowing what needs to be moved is one thing, but understanding the cost of labor to get the job done is another.
Be sure to get everything in writing and secure the departure and arrival dates to avoid any potential hiccups.

What happens if something is damaged?
You've chosen a company you can trust and afford, but what will the company do if they accidentally break something of yours? Be sure to ask what the company's policy is on this subject.