Rent vs Buy – Now vs Later

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buying a home for the first time, first-time homebuyer, Jacksonville FL Real Estate, Jacksonville Real Estate, millennials, real estate, real estate investments, Real Estate Team, rent vs. buy

If affordability is a concern and you are unsure were you’d like to live in the near future, you may find this article on the hidden long-term cost of renting compelling.  It’s called “The $700,000+ mistake nearly 6 in 10 millennials may make.” You can check out the article here:

http://www.marketwatch.com/story/the-700000-mistake-nearly-6-in-10-millennials-may-make-2015-01-22

Renting in the short-term may be your best option, but waiting to buy can have a high cost. For example: “At current rates of appreciation, in 10 years the average home (now priced at $190,000) would be selling for about $249,000. If interest rates return to their historical norm (from over the past 15 years) of 5.6%, a monthly house payment (including mortgage, taxes and insurance) on a $249,000 home would be $1,574 a month, a 52% increase over the $1,037 house payment for a median priced home now.”

If you ever have any questions about home ownership, we are more than happy to help you plan for your future. Kevin and Jennifer Hanley, REALTORS TheHanleyHomeTeam.com 904-515-2479

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Affording a Home

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affording a home, buying your first home, first-time homebuyer, home affordability, homes for sale, Homes in Jacksonville FL, interest rates, interest rates rising, renters, tenants

Home shopping can be tough when you’re not sure how much you can afford. If you’ve wanted to live the dream of owning your own home, but haven’t been sure where to start, we’ve put together a few tips that can make it easier to get a handle on where to start.

1. Tax benefits usually mean you can afford more than your rent. Interest deductions on taxes typically translate into significant savings. Many people find they can afford about 33% more than their current rent. To get an idea of what this might be for you, multiply your current rent by 1.33.

2. A home price two-to-three times your gross income is usually a reasonable place to begin. For example, if your household made $75,000 last year, you could begin looking in the $150,000 – $225,000 range to start.

3. Know how much you can put down. Ideally, you’d want to have 20% of the home’s price set aside for a down payment. On a $200,000 home, this would be roughly $40,000. While people qualify with less, it can result in higher interest rates (which translate to higher monthly payments).

4. Determine your “debt factor.” Lenders will often cite the 28/41 rule when it comes to your debt. This means that your mortgage (plus taxes and insurance) shouldn’t exceed 28% of your gross monthly income. Your total payments (credit card, car loan, etc.) plus your mortgage shouldn’t come to more than 41% of your gross monthly income.

We often work with first-time buyers and renters to get themselves lined up for home ownership. If you’d like to learn more, or have questions, we’re happy to help.  Kevin and Jennifer Hanley, REALTORS, The Hanley Home Team – http://www.HanleyHomeTeam.com 904-515-2479

3 Seldom Seen Selling Techniques

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3 selling techniques, apartment living, condo living, first-time homebuyer, Little home luxuries, nearby attractions, selling your home, shared space

Selling your home soon? It can be hard for sellers to come up with the details that make their home unique and appealing to buyers, especially since they’ve decided to move up or move on.

We like to offer these three selling perspectives that help encourage sellers to see their home in a particularly favorable light. Ask yourself these questions and see if you don’t begin to see your listing with fresh eyes:

1. Where are the little luxuries in my home?

Don’t think big, think small: Did you have a professional organize your closet storage systems last year? Are there built-in items in the garage which make it a natural home for a future handyman? Did you weatherproof and tune-up the storage shed out back to double as a home office? Do the kitchen cabinets have slide-out shelves or other small luxury amenities? It’s not all about whirlpool bathtubs and brand new appliances… look for little wins that a lot of buyers will appreciate.

2. Why does your home beat apartment or condo living?

Many first-time buyers will have reached their limit with neighbors, noise, and cramped quarters. Sell your home on its merits compared to the “shared space” life. Is your neighborhood quiet? How big is the lot? What’s parking like at your house?

3. What’s fun nearby? (Even if you don’t think it’s fun.)

Even if you’re not a golfer, weightlifter, or theater-goer, those activities nearby can be a nice plus for potential buyers. With a new home comes the hope for personal growth and change, and playing up any activities that may catch a buyer’s eye are well worth mentioning. Have you become blind to activities nearby, simply because they’re not for you? Look again!

Of course there’s more to selling a home than these three tips, but hopefully these will get you thinking. For a more comprehensive sense of how we get our clients top dollar for their house, get in touch today: Kevin and Jennifer Hanley, REALTORS 904-422-7626 http://www.HanleyHomeTeam.com