owning a home

Owning a Home Not Among Americans’ Problems

The latest Gallup poll shows that the average American has a lot of problems, but owning a home is not one of the biggies any more.

Right now, more Americans are concerned about healthcare costs, low wages and a lack of jobs.

When it comes to the capital markets, they worry about the cost of college for their children.

But, the most striking result of the Gallup poll, explained in the chart below, is the shift in the attitude towards owning a home.

Owning a home is roughly half as important to Americans today as it was 3 years ago

Owning a Home Half as Important As Three Years Ago

In just three short years, the number of Americans who cite the costs associated with homeownership and renting as one of their biggest financial worries, sliced firmly in half.

In 2012, a full 12% of Americans put this cost at the top of their financial worry. Now it's dropped all the way down to 6%.

Although when broken down by income, the results skew somewhat.

Below the $30k/year bracket, housing is the most important worry for 9% of the respondents. That lowers to 4% in the $30k to $75k range. But then, it jumps up to 6% for Americans making more than that.

Perhaps not surprisingly, lower-income Americans name "lack of money/cash flow" and "not enough money to pay debts" as their top most important money woes.

Find more news articles as they relate to owning a home in the Columbia SC Real Estate News section under Columbia SC Real Estate Categories to your right. And find us on Facebook and follow us on Twitter for daily updates we post there as well.

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Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Renting vs. Owning a Home

In this real estate market are you better off owning a home or renting? Kiplinger has the answer in this short video…

Questions or comments? We’d love to hear from you. Just click the comment link below and tell us what’s on your mind.

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Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

5 Reasons To Buy A Home

Recent events in the housing market have many people questioning if home ownership is still something to aim for. Even as the nation continues to recover from the economic downturn, the benefits of purchasing a home of your own remain as strong as ever.

1. Good Investment

Renters receive no return on what they pay out in monthly rent – it’s virtually money out the window. Even though renters are paying for living space, committing to a home purchase and monthly mortgage creates much more potential for a return on the investment. As you pay your mortgage each month, you are building equity and increasing your net worth. Equity is the value of the property that you own or what you have paid off each month. A home’s equity is also combined with the amount of appreciation, or amount your home has increased in value over time.

Building up your home’s equity also opens the door to mortgage refinancing and home equity loans.

Homeowners then have more financial flexibility towards financing large expenses such as remodeling, college tuition or debt consolidation. Of course it’s always possible that the value of your property will go down and not up, as many homeowners throughout the country have experienced over the past few years. Still, if you look at the value of real estate over the long term it has gone up over time. Like any investment buying a home involves risk – research the real estate market in your area to help you make a decision that feels right for you.

2. Tax Benefits

As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional deductions. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.

3. Financial Control

Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.

4. Freedom

Let’s face it, renting is fine for many, however, there usually comes a time when you want to call the shots and be in control of your personal space. Most rental situations dictate everything from paint colors to pets to window treatments. Forget about remodeling or making home improvements, and why would you want to invest time and money in to a place that is not even yours? As a homeowner you can also resolve issues on your own, such as home repair and maintenance. Owning a home of your own allows for personal expression and control.

5. Pride of Ownership

There is a great deal of satisfaction that comes from buying a house. It is an experience that provides independence and privacy. Because it is typically the largest single investment that most of us will ever make, it remains an achievement to be proud of.

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Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Condos and Townhouses – Alternative Housing Options

Condominiums and townhouses are going up in higher numbers these days. Living in a condo or a townhouse is a great choice for people who are attracted to the idea of owning a property at a fairly inexpensive price and yet is well-situated in the city. Of course, one of the greatest things about condo living is maximizing its amenities. Another advantage is that owners only maintain their own units because the entrance and hallway maintenance is assigned to a housekeeping staff or maintenance crew.

Many units are furnished for hassle-free move-ins. Most city dwellers do not have the time to monitor construction and renovation of their units, that’s why condos and townhouses offer a great alternative to a single-family home. Condominiums and townhouses even allow owners the convenience of moving in to pre-finished units that suit their tastes and budget. In addition, in most cases, they are easier to clean and maintain.

A well-developed condominium and townhouse also means enjoying a long list of integrated services: higher level of security, incomparable facilities management, concierge or housekeeping services and sometimes faster turnover on sales or rentals. Indeed, condo or townhouse living is an amazing option for those who want to try a new and fresher perspective in modern lifestyle.

Though you don’t own the actual building, you are in full ownership of the living space, and you have the tax benefits and positive credit information regarding long term benefit of ownership. It’s also a good starter property for young working professionals and couples who need to build experience in owning and maintaining property.

Townhouses offer a little green space, generally in the form of a small backyard area and landscaped walkup drive that leads to the front door. Some townhomes are designed to include a backyard porch or a terrace upstairs to enhance the feeling of open space. Furthermore, because your townhome’s front and back yard are small, you won’t be having much yard work to do. When you’re planning to add a deck or a patio onto the back of your townhome, you’ll have even less yard to take care of.

Condos and townhomes may be good options when looking for a place to live these days. Talk to us about the options available in our market for condos and townhomes.

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Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Tax Differences Between Buying and Renting

Owning your own home is part of the American dream. But according to a recent Wall Street Journal article, owning a home is not always the best idea.

Some Americans who cashed in on the $8,000 first-time home buyers credit before it expired in April 2010 got a bad deal. The credit pushed up sales prices, which then dropped dramatically when the buying frenzy ended.

So is it better to rent a home than buy? That’s not always the case, either. Let’s look at the tax benefits for a residential homeowner.

Consider a Midwestern family of four who bought a three-bedroom house they could afford. Suppose they got a thirty-year, $200,000 loan with 4.5 percent interest, for a monthly payment of $1,015. Add in an estimated average property tax of $1,625 and insurance of $1,200 per year, and the total annual lodging expense would be around $15,000—or $1,250 per month.

In this scenario, $13,500 worth of mortgage interest and property taxes would be deductible. Folks in a combined federal and state tax bracket of 30 percent would save $337.50 per month. After taxes, that home would cost them $912.50 per month.

How much would a similar home cost to rent? Looking at the area around Chicago, Ill., we can find two- to three-bedroom homes available for around $1,500 per month. Taking into consideration the tax benefits for homeowners, renting a home would have cost the family $7,000 more per year than owning one.

Even after a drop in value within the first year, the family came out just about even between renting and buying. Families who buy homes they can afford tend to stay in those homes for a decade or more. In the long run, the prices rise, and the loan balance declines. When they get ready to sell in ten to thirty years, they walk away with a profit.

People who select homes where the monthly mortgage, property tax, and insurance payments are no more than 15–30 percent more than their rent will always fare well in the long run.

So—Rent or Buy?

The answer is different for every family, in every market. With interest rates the lowest they’ve been in generations, it’s certainly worth looking for a home to buy. The time may never be better than it is right now.

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Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

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