"The best deal investment you can make is to buy a primary residence that you're the owner-occupier of"
Great advice for today's prospective buyers from Billionaire John Paulson! Among Paulson's explanations on the benefits of purchasing featured in this KCM Blog article, he explains:
"And you've locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed."
Contact a Lawyers Realty market expert (717-364-3000) to guide you through the home buying process and help you make your investment!
According to the Trulia Rent vs. Buy Archives it is over 38% cheaper to buy than rent in most metro areas in Pennsylvania. They report that their studies find that buying remains cheaper in all 100 top Metro areas across the United States. However, mortgage rates have slowly risen which has slightly narrowed the gap. Buying vs. Renting is a hyper local comparison because each market is driven by different forces. The cost of buying in Detroit is less than Pennsylvania, and much less than California.
Check out Trulia's nationwide index:
"Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more."
"Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord."
"Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people's tendency to defer savings to another day."
"Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain."
"Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition."
If you are considering purchasing a home, contact a Lawyers Realty Agent today to learn about the home buying process and representation that protects your interests. 717-364-3000
You have been searching and searching for a new home within your price range. What you are finding are houses that are best described as "a fixer upper", "has great bones but in need of TLC", "stuck in the 1970's - does lime green sound familiar". What has been your reaction to these houses? "No way, we can't afford to buy the house AND do any work!"
Well, did you know that the Federal Housing Administration (FHA) has a program for that? The FHA 203k Rehab Loan allows for the cost of renovations to be included in your mortgage. By considering this program, many more houses may open up to you as possible choices.
The 203k Rehab Loans allows for a variety of repairs to the home. It can be used for such things as painting; minor repairs; updating kitchens, bathrooms or flooring; plumbing and electrical work; among others. A validated contractor will be required to provide estimates on the renovations as well as complete the work within 6 months.
The FHA 203k Loan is a great option to help improve a potential home, but the process may take longer than other loans so be prepared to be patient. By working with a REALTOR®, you will be guided throughout the process which would include putting you in contact with the right mortgage professional who knows the ins and outs of the FHA 203k Program and can qualify you.
When you are ready to buy, choose the Lawyers Realty Team – a REALTOR plus a Real Estate Attorney at no additional cost. It is Added Value & Protection for buyers. (717) 364-300 or visit LawyersRealtyPA.com.
To the buyers and sellers we have worked with this year and in the past, the REALTORS, Office Administration & Attorneys at Lawyers Realty thank you. And to those of you that have entrusted us enough to have referred your family and friends, thank you.
It doesn't have to be a holiday for us to be thankful, but Thanksgiving is a time to reflect on the gratitude for our bounty and for the relationships that we treasure.
We greatly appreciate the opportunity to have been the real estate company to represent you in the purchase and/or sale of your homes. The same homes where families and friends will gather this Thanksgiving to reflect and give thanks for their blessings.
"As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them." John F. Kennedy
What are you grateful for?
Patti Spirk has joined the team at Lawyers Realty as our newest REALTOR®. Knowing that she would have in-house real estate attorneys available to assist her made the decision an easy one when deciding which company would become her real estate home.
A resident of Hershey, Patti knows the community and surrounding area well. Her passion for home design as well as her community makes Patti the one to call for your real estate needs in the Hershey/Hummelstown area.
We welcome Patti to Lawyers Realty and look forward to working with her.
Patti Spirk, REALTOR® can be reached at 717-364-1597 or visit her website at pspirk.lawyersrealtypa.com.