Top 5 Reasons to Buy a Home in 2012

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Top 5 Reasons to Buy a Home in 2012

Home Buying by Jonathan Slappey, January 6, 2012

Edited by Claire Richards, REALTOR

The American dream of homeownership is a very feasible aspiration for 2012.

There are many benefits of owning a home. Yet some first-time buyers are skeptical of purchasing with the uncertainty surrounding the housing market. The uncertainty many reference when speaking about the housing market involves a specific date when home values will increase. Since no one can pinpoint this date, the word uncertainty (when paired with the housing market) often reveals a negative connotation. There are some factors we can be certain about in this housing market such as home values rebounding. This is true; the housing market often moves in cycles.

It’s safe to assume that many Americans harbored the same uncertainty during the George H. W. Bush administration in the early 1990s when the national homeownership rate fell from its previous historic high of 64.4 percent in 1980 to a low of 64.1 percent in 1991.

In the 1960s Lyndon Johnson illustrated a correlation between homeownership and accountability by stating “owning a home can increase responsibility and stake out a man’s place in his community…The man who owns a home has something to be proud of and reason to protect and preserve it.”

This statement is still true more than 50 years later. There are many reasons to take pride in homeownership such as:

• Appreciation – Buying a home now at current rates of 4% or less can almost ensure your home’s appreciation in the future. These rates are at historic lows and home prices in many parts of the country are down. This is the perfect recipe for home appreciation. Additionally, many foreclosed homes are available for a fraction of the original cost. This can translate to a higher profit if you decide to sell once the market rebounds.

• Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible. The IRS (Publication 530) provides detailed tax information for first-time buyers that may answer many questions about what deductions homeowners are eligible for.

• Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset, which are given preferential tax treatment.

• Equity Building – Many factors such as credit qualification, loan flexibility, and annual percentage rate (APR) contribute to the final decision of what type of mortgage loan best fits your goals. Yet, a new trend being used by some homeowners is to actually add money to their monthly payment to decrease the principal balance of their loans at a much faster pace. This trend is called equity building. Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster. This rapid payment process allows borrowers to:

• Pay off the principal balance faster
• Lock in near-record-low interest rates
• Shorten the length of their home loan
• Own their home faster
• Pay substantially less mortgage interest

Equity building is a beneficial trend that’s becoming more and more popular with fiscally responsible homeowners. Also, home equity is the largest single source of household wealth for most Americans.

• Pride – Homeownership offers many benefits to many different types of people. For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk. For me, homeownership will permit me to build an NBA regulation size basketball court on my own property. No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride. Furthermore, when the uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale.

Consider these 5 reasons for buying a home in 2012 carefully.  This may just be the best time to buy in your lifetime.

Thanks for reading,

Claire

http://www.ClaireRichardsRealtor.com

10 Low Effort Ways to Save Energy

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Posted  from Today’s Home Spun Wisdom ©2011 the Akron Beacon Journal (Akron, Ohio)

I know we have cheated Mr. Winter up to now, but you know it will be pay back very soon.  Below find  10 things you can do right now to cut down on your heating and power costs when winter does return. And you won’t break the bank or much of a sweat.

1. Lock the windows. Even when a window is closed, a little space remains between the sashes where air can leak in. Simply locking the window pulls the sashes tightly together.

2. Unplug. Many appliances, electronics and other electrical devices — even cell phone chargers—draw power even when they’re turned off. Unplugging them when they’re not in use eliminates this vampire power drain. Granted, that’s not always easy or even possible to do. But where it’s practical, you can plug more than one device—say, your TV and DVD player —into an accessible power strip. With the flip of just the strip’s power switch, you cut the power to everything plugged into it.

3. Wash in cold. If you’re used to washing with warm water, you can probably switch to cold without noticing a difference. And no matter what temperature you wash your clothes in, you can always rinse in cold. You’ll save on the energy that would have gone into heating the water. There’s a bonus: Cold water saves wear on your clothes, so they’ll last longer. Or at least they’ll be in better shape to donate to charity when you just have to replace them when this season’s new fashions. I wouldn’t suggest abandoning hot-water washes altogether, though. I’d still use hot for towels, bedding, underwear and laundry with oily stains. Want to save even more? Skip the dryer and hang the clothes to dry.

 

 

 

 

 

 

 

 

4. Dim the lights. A dimmer works by reducing the power flowing to a lamp or light fixture. If you don’t need full brightness, turn the lights down a little. Maybe I should do that with the lights over my bathroom mirror. One note: Not all compact fluorescent bulbs work with dimmers. If you use CFLs, check the package to make sure you’re buying the dimmable kind. Oh, and take Dad’s advice: Turn off any lights you don’t need.

5. Turn off the computer.
When you’re done surfing the Net and updating your Facebook status for the day, shut down your computer. Better still, activate its system standby or hibernating feature to save power when the computer is on during the day. Of course, you don’t want to turn off the computer if you’ve scheduled automatic maintenance checks that happen at night.

6. Rearrange the furniture.
A forced-air system works best when air can flow freely from registers and into cold-air returns. Make sure your furniture isn’t blocking these vents. The same thing applies to radiators. If you block them with furniture, you block their heat.

7. Change the furnace filter.
The filter’s primary purpose is to trap dust and other gunk before it gets to the furnace. Dirty filters impede air flow, causing the furnace blower to work longer. Dirty parts also wear out faster. By keeping them clean, you’ll cut down on furnace repair costs and reduce the chance of a furnace failure — which, of course, always happens on the coldest day of the year. Change the filter monthly, or clean it if it’s a reusable type.

8. Turn down the tank.
For most homes, a setting of 120 degrees is plenty hot for a water heater. The only exception is if you have a dishwasher without a booster heater. Check the user manual to find out whether you need hotter water. When the water isn’t as hot, mineral buildup and corrosion slow. That helps your water heater run better and last longer.

9. Let the sun shine in.
The sun is a powerful heating source, even in winter. Opening window coverings on sunny days lets you take advantage of that free heat, reducing the amount your furnace needs to produce. Close those coverings at night to help keep the heat inside.

10. Avoid the range.
As much as possible, skip using the stove or oven and opt instead for smaller cooking appliances—slow cookers, microwave ovens, toaster ovens and the like. They use less energy than that big appliance.

Come to think of it, saving energy sounds like a great excuse for eating out. There go the savings.

Have a warmer home in winter.

Thanks for reading,

Claire

www.clairerichardsrealtor.com