So you have heard about "the Fed" "cutting rates..." but what does that mean for you as a home buyer? Here's a couple quick thoughts from Brad Arendt of CTX Mortgage on the impact of recent decisions.
*The Fed surprised everyone with a 1/2 percent rate cut - stock market rally!
*Mortgage rates actually move up following the news. Contrary to the TV news reports, mortgage rates actually rise when the Fed lowers their rate. Why? Mortgage rates hate inflation, and a Fed cut can lead to inflation.
*FHA has increased their loan limits in the Triangle....now up to $224,200 for a single family dwelling. Great news! This will help many buyers with credit challenges find a home AND a loan!
Tuesday
To Buy or to Rent? That is the question...
...and here are some answers...
It's almost always better to own your home rather than to rent. Right? After all, you build equity and get to write off your mortgage interest. And if you play your cards right, when you sell you'll be eligible for one of the best tax breaks available.
But that doesn't mean that everyone should be a homeowner. Ask someone in Florida whose house has been on the market for a year and is losing value every month...
If your move is short-term or if interest rates are high and property values deteriorating, it may be worthwhile to deal with a landlord for a while.
Here are some advantages and disadvantages if you are considering buying vs. renting.
HOME OWNERSHIP
Advantages
- Property Builds Equity
- Free to change décor/ landscaping
- Not dependant on landlord for maintenance
- Tax Benefits for interest paid on your loan
Disadvantages
- Responsible for Maintenance
- Property Taxes
- Possibility of Equity Loss
- Less “mobility” than renting
RENTING
Advantages
- Typically little or no responsibility for maintenance
- Easier to move; more “mobility”
Disadvantages
- No Tax Benefits
- No Equity Build up
- No control over rent increases
My best advice is to talk with professionals about your situation. While I believe it is smart to talk with a Realtor, it is also approproate to talk with an accountant, a lawyer, and/or financial planner about your individual goals.
It's almost always better to own your home rather than to rent. Right? After all, you build equity and get to write off your mortgage interest. And if you play your cards right, when you sell you'll be eligible for one of the best tax breaks available.
But that doesn't mean that everyone should be a homeowner. Ask someone in Florida whose house has been on the market for a year and is losing value every month...
If your move is short-term or if interest rates are high and property values deteriorating, it may be worthwhile to deal with a landlord for a while.
Here are some advantages and disadvantages if you are considering buying vs. renting.
HOME OWNERSHIP
Advantages
- Property Builds Equity
- Free to change décor/ landscaping
- Not dependant on landlord for maintenance
- Tax Benefits for interest paid on your loan
Disadvantages
- Responsible for Maintenance
- Property Taxes
- Possibility of Equity Loss
- Less “mobility” than renting
RENTING
Advantages
- Typically little or no responsibility for maintenance
- Easier to move; more “mobility”
Disadvantages
- No Tax Benefits
- No Equity Build up
- No control over rent increases
My best advice is to talk with professionals about your situation. While I believe it is smart to talk with a Realtor, it is also approproate to talk with an accountant, a lawyer, and/or financial planner about your individual goals.
And the Winner is...Cameron Pond!
I recently had the privilege of selling a home in Cameron Pond, a new home neighborhood located in Cary, NC.
After looking at almost 50 homes around the Triangle, and facing a 21-day deadline to close on a home in order to avoid living in a hotel, my clients decided on a new home built by Homescape, a great local builder.
Given their tight schedule, my clients were “no nonsense” buyers; they did not want or have time for codling or sugar coating. That is exactly the treatment they received from their Cameron Pond sales team. Lynda Foster and Rick Newnham were nothing but honest, efficient, professional, and direct throughout the entire homebuying process.
Obviously every homebuyer is different. This particular buyer didn’t need the big sales pitch or the scenic tour of the community. They really didn’t need additional information on the builder’s reputation. The sales team sensed that, and just stuck to the hard facts! In my opinion they understand the real definition of customer service: know what your customers want and deliver it.
We were able to agree to the terms, get under contract, close, and move in, all within 14 calendar days!
I owe many thanks to Rick and Lynda at Cameron Pond, as well as Matt, the Homescape construction manager. Because of them, my clients had a great buying experience and now live in a beautiful new home in a wonderful community.
After looking at almost 50 homes around the Triangle, and facing a 21-day deadline to close on a home in order to avoid living in a hotel, my clients decided on a new home built by Homescape, a great local builder.
Given their tight schedule, my clients were “no nonsense” buyers; they did not want or have time for codling or sugar coating. That is exactly the treatment they received from their Cameron Pond sales team. Lynda Foster and Rick Newnham were nothing but honest, efficient, professional, and direct throughout the entire homebuying process.
Obviously every homebuyer is different. This particular buyer didn’t need the big sales pitch or the scenic tour of the community. They really didn’t need additional information on the builder’s reputation. The sales team sensed that, and just stuck to the hard facts! In my opinion they understand the real definition of customer service: know what your customers want and deliver it.
We were able to agree to the terms, get under contract, close, and move in, all within 14 calendar days!
I owe many thanks to Rick and Lynda at Cameron Pond, as well as Matt, the Homescape construction manager. Because of them, my clients had a great buying experience and now live in a beautiful new home in a wonderful community.
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