Buying A Home in La Jolla Can Have Its Perks

Thinking of buying a home in La Jolla, California? The area is one one of the most beautiful coastal cities in the United States. Living here, near San Diego, has many positive perks. There are great restaurants, shopping, and a great active life.

  • Sammy’s Pizza – Sammy’s Pizza was the original Sammy’s Woodfired Pizza that opened in 1989. This was San Diego’s first restaurant that introduced the concept of woodfired pizza. Sammy’s Pizza is located on Pearl Street, a prime street, and only blocks away from the La Jolla Beach. Sammy’s has cabana covered settings outdoor, surrounding a large fire-pit. They also use local, organic, and nutritionally balanced ingredients when possible.
  • The Birch Aquarium – The Birch Aquarium, is a “public exploration center for the world-renowned Scripps Institution of Oceanography” at University of California San Diego (UCSD). This Scripps Aquarium provides education of ocean science through activities, creative exhibits, and programs. These creative approaches help children and adults use critical thinking and help show them how science is relevant to their daily lives.
  • Westfield UTC Mall – Westfield UTC Mall is an open-air shopping mall located the University City community of San Diego California. The UTC Mall has recently undergone extensive renovation in 2012 for more of a resort-inspired shopping. Now the UTC customers feel like they are on vacation while they shop. Shop and wander past chic boutiques under cabana-lined walkways. Relax and enjoy the nightlife at the new Palm Plaza – “a haven of palm trees and fire pits for cocktailing or catching a live performance”.
  • Torrey Pines Golf Course – Torrey Pines Golf Course is, a world-renown facility, situated atop of the coastal cliffs overlooking the Pacific Ocean. This golf course is “recognized as the premier municipal golf course owned and operated by a city”. It offers a widely distinguishable 18-hole championship golf course that yearly host the PGA TOUR’s Farmer Insurance Open event. “Torrey Pines also offers one of the largest on-course golf shops in the United States, expert instruction, tournaments, and advanced golf schools”.
  • CorePower Yoga – CorePower Yoga is located in the La Jolla Colony Shopping Center, off Regents Road in the UTC shopping district. “The studio is situated on a first floor suite within the University Town Center shopping district”. These yoga classes are done in their climate-controlled environments that efficiently heat and maintain the yoga class. These classes are set to energized music while helping those to become more strengthened, balanced and detoxified. While building a core powered body, you will also enlighten your body and mind.

La Jolla has so many things to offer that are both exciting and family-friendly. Enjoy an amazing wood fire pizza with your family and friends on a Friday night, at Sammy’s Pizza. On Saturday, spend the day at the beach, Birch Aquarium, or the Westfield UTC Mall.. And if you want a Sunday to yourself, go golfing at the Torrey Pines Golf Course or unwind at CorePower Yoga. La Jolla has so many activities, restaurants, beaches, and active life to making it the perfect family community.

Home Buying: Prepare To Be CREDIT – Worthy

Since the vast majority of homeowners, especially, of first – time ones, use a mortgage, as a major component, in having the necessary funds, needed to purchase a particular property, common sense should indicate, it’s essential to ensure your CREDIT is of a quality, which makes you credit – worthy, and capable of qualifying, for the necessary financing. Buying a house, is a complex, complicated, important process, which, for most people, represents, not only a place to live, but their single – biggest, financial asset. With that in mind, this article will attempt to briefly examine, consider, and review, using the mnemonic approach, why this matters, and some things to consider.

1. Cash on hand; creative; consider: Buying a house requires having a considerable amount of cash, on hand, even when you use a mortgage. This includes, monies needed for a down – payment, closing costs, necessary reserves, and generally, at least 6 months, monthly payment, is required by many lending institutions. Home buyers should have the creativity and vision, to consider whether a particular property is right for you, and whether the bones, of the house, make it a smart decision.

2. Reserves; reside; region; right for you: Do you have the necessary reserves needed, both as a requirement of the lender, as well as for repairs, renovations, etc? Will it be a place, you wish, to reside? Always consider, after looking at the pros and cons, whether a particular house, is right, for you!

3. Exist; excellence; energy: Will a particular property, enhance your focus on doing more than, merely, existing, and, rather, seeking whatever you consider, to be, the utmost excellence? The right house should energize your existence!

4. Delve deeply; discover; deduce: Begin the process, by delving deeply, into your financial picture. Acquire your free copy of your Credit Report, and check for any detrimental areas, etc, and fix them, prior to beginning your search. Discover as much, relevant information, as possible, and seek, to deduce, what might be needed, to make you more credit – worthy!

5. Image; imagination; incentives; insights: For most, their personal self – image, directs them to a particular house. You need the imagination, to balance what is, with the possibilities, and potential. Examine which lending institutions, might be offering incentives, and whether, you qualify, or what you must do! It’s your personal insights, which make the biggest difference!

6. Timely: Is this the right time, to buy a house? Are you prepared, emotionally, and financially? Are mortgage interest rates, favorable, and are all your personal finances, prepared, and set – up, for the better? Once you discover the home, for you, will you be ready, willing and able, to take, well – considered, timely action?

Consider you CREDIT, and do all you can, to enhance your credit rating. If you want to purchase a house, it’s important, to begin, prepared and ready.

The Right Mortgage Option for Buying a Home

Things that can affect which type of mortgage option is right depends greatly on the home buyer. There are different types of low down payment and no down payment mortgages. Some homes loans are best suited for specific types of homes. Distressed homes, for instance are best matched with an FHA 203k renovation loan. This type of home loan has funds for repairs structured into it.

Of all the mortgage options available, fixed rate loans are the safest. Back in the days of subprime lending by predatory lenders, many borrowers fell prey to overwhelming debt. A fixed rate home loan is more secure for many home buyers; there’s no confusion about monthly payments and interest.

Compared to an ARM, it’s much easier to calculate a fixed rate mortgage too. The most familiar of these is the 30-year conventional. Home buyers usually make a 10% – 20% down payment with a fixed interest rate. FHA loan products have a 3.5% deposit.

Conventional loans have a lender insurance premium when less than 20% is deposited. This premium called PMI, or private mortgage insurance, protects lenders in case of borrower default. If the loan-to-value reaches 80%, PMI can be dismissed. Buying at lower rates enables buyers to make extra principal payments. This means PMI can be dismissed sooner rather than later.

For some home-buyers a 15-year or bi-weekly fixed rate loan is more attractive. These debts are paid off much faster than 30-year conventional mortgages.

An ARM, or adjustable rate mortgage, can be a useful product for some home buyers. This type of loan is best for buyers when interest rates are low. What borrowers must consider is the length of time they intend to stay in the home. Borrowers benefit if they are going to stay only a few years, sell the property and move before rates rise. If a borrower can pay the mortgage off before rates rise, that’s even better.

ARM’s also have fixed rates, but harder to understand. There is a specific rate which, as interest rates rise and fall, remains the same. As rates go up and down, a percent is added or subtracted but subject to caps. These caps dictate the maximum and lowest rates you can expect. Make sure you understand the loan terms on an ARM.

Buyers should spend time calculating mortgage options with different down payments and interest rates. This helps them to see how the expense of carrying a mortgage will impact their finances.

Foundation Failure! 5 Things You Should Know Before Buying A Home

There it is! Your dream home sits there before your very eyes. You found just about everything you ever wanted and it’s in a great location. The house passed inspection. You’ve worked, sacrificed, and saved to make a down payment. You’ve jumped through the hoops and moved Heaven and Earth to make it a reality. What else could you possibly need to do before signing on the dotted line and walking into your dream?

Well, as it turns out, there are 5 more things to consider… and they all have something to do with your future dream home’s foundation.

1) Not all home inspections are equal.

Though most professional inspectors are extremely good at what they do, they can and often do miss signs of future foundation failure. A professional inspector’s field is so broad that it can be difficult or almost impossible to be proficient at every single area. Often, what passes inspection as “settling cracks” is really a neon sign announcing upcoming Foundation Failure.

2) It’s All About Location, Location, Location

Where you buy is just as important as what you buy. Houses sitting on flood plains are a disaster just waiting to happen. Even houses on the highest parcels of a flood plain are susceptible to the devastating results of flooding. A home owner may breathe a well deserved sigh of relief when his or her home is spared from water in the house and not realize the impact flooding has had on the soil on which the house sits. Soils react to standing water in a negative way through either expanding and contracting or erosion. Either can lead to Foundation Failure.

3) The type of soil beneath the house dictates the future.

Different soil types do different things. Clays tend to expand and contract with moisture or the lack thereof. Sand mixes often erode with sever rain conditions. Loamy mixes, both sand and clay, can be vulnerable to the proportions of the soil mixtures. A soil analysis can almost predict the future of a home’s foundation.

4) Outdated plumbing is a recipe for disaster.

In older homes, cast iron plumbing was installed in the initial construction. As time passes, cast iron becomes porous and eventually starts to leak. The ground surrounding the leak softens and gives way to the incredible amount of weight of the house above it. This creates unnatural stress on a concrete slab foundation and leads to foundation failure. It is important to note that not all plumbing leaks manifest symptoms! Home owners will often state emphatically that there’s been no change in water pressure in any of the home’s fixtures, therefore there cannot be a “plumbing leak”. The reality is that a plumbing leak can actually be a sewer drain leak. Sewer drain leaks do not create decreased water pressure because they use gravity to carry away waste and waste water. Once water hits the sewer drain, it has served its purpose and is leaving. The functional capabilities of faucets and toilets are unaffected by sewer leaks, hence, no lowered water pressure.

5) Everything is subject to change without prior notice.

Though not often, a house can pass inspection and then have issues almost immediately after purchase. Timing is tricky because things don’t come with an expiration date on them. Couple that with an overloaded professional inspector and you could have a potential time bomb on your hands. It almost makes a potential home buyer want to just stay put and forgo that dream house… almost. There is still hope for that dream house.

A Foundation Repair Specialist is worth every penny he charges if he saves a potential home buyer his or her life savings. Unlike a general house inspector, a Foundation Specialist knows all the signs and can see where they’re going. Additionally, he knows all the right questions to ask the current home owner and can build the home’s back story. This enables him to tell you if there’s a happy ending or not.

Before you make a decision on purchasing a home, consult a local Foundation Professional. His or her expertise will come with a reasonable price which will insure that your interests are served and not the interest of someone trying to unload a “money pit”. As the old saying goes, an ounce of prevention is worth a pound of cure.

Knowing The SCORE Of Home Buying

Most of us consider, owning a home, of our own, as a major component, of the so – called, American Dream. However, unless, one, proceeds, in this quest, wisely, and in a prepared, focused manner, the dream, may soon, deteriorate, and become a nightmare! Smart buyers, proceed, knowing, as much as possible, in terms of better understanding, the true, SCORE, of owning a house. Wouldn’t it be nice, if, what should be, potentially, the happiest time of our life, became, so, because we proactively, reduced our stress levels, by being, as prepared, as possible, for any potential ramifications, obstacles, etc? With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Savings; serves: Begin by being prepared for the financial necessities of purchasing a house! For most of us, it requires, the commitment and discipline, to begin the process, significantly, in – advance, and create a source of savings, and accumulating funds, for items, such as the down – payment, closing costs, reserves for renovations, upgrades, repairs, upgrades, etc. Align this, by choosing the right property, for you and your present and future needs, and requirements, and choose one, which, both serves your needs, priorities, and goals, as well as financial reality!

2. Credit: The vast majority of buyers, especially first – time, ones, take advantage of some sort of financing, which, in most cases, is a mortgage. To be prepared, do, all you can, to improve and address your credit, and credit – worthiness, so, you qualify, for the best, most affordable terms, etc.

3. Options; opportunities; organized: Proceed, in an organized manner, to be as prepared, as possible! Know which options you want, prefer, and absolutely need, and proceed, carefully, seeking the finest possible opportunities, in as wise a way, as possible!

4. Relevant; realistic; real estate: Study, learn, and discover, what is most relevant, in terms of the local real estate market, in your desired area. Proceed, in a realistic manner, in terms of what you want, want you can afford, and pricing – related issues!

4. Evaluate; efforts; excellence: Take the time, and make a concerted effort, to evaluate what makes sense for you! Make your efforts, worthwhile, by proceeding, with relevant knowledge, and understanding, and hiring a real estate professional, who is best suited for you! Seek to make your goal, the ultimate degree of excellence, and satisfaction, by proceeding, wisely, and prepared!

When you know the SCORE, your results will be better! Will you commit to this discipline and commitment?

The ARTS Of Home Buying

Since, for most people, the value of their house, represents their single – biggest, financial asset, wouldn’t it make sense, to carefully, proceed, when you decide the time is right, for you to buy, and own, a home of your own? The major component of the so – called, American Dream, few people proceed, in as wise a way, as possible, when pursuing this priority. Indeed, when done properly, home buying depends on the professionally, designed, and recommended, ARTS, of doing so. In order to avoid seeing your desired dream, become an undesirable, nightmare, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and requires, and why it’s wise to learn and use.

1. Analyze; appraise; asset: Don’t proceed in an haphazard manner, but, pay keen attention, and fully analyze, all the positives and negatives! Know your personal needs, goals, and priorities, carefully be introspective and objective, about these, and fully appraise all aspects, of what’s involved, with purchasing this specific property. Protect this most valued, and valuable asset, and proceed, wisely!

2. Region: What factors about the specific region, area, neighborhood, etc, might have an effect on the value of a certain piece of real estate? What do you need, from the place you live, in terms of conveniences, safety, shopping, transportation, education, etc? Do these add, or reduce value, to the property?

3. Taxes: How are the real estate taxes, in your proposed area, compared to other comparative ones? Have you factored in, what that might mean, in terms of your monthly carrying costs/ charges, and expenses? What impact does the 2017 legislation, which limited State And Local Taxes, to $10,000, have on the value, in terms of offset of these costs, on your federal income tax?

4. Systems; solutions: Have a professional home inspector, and/ or, engineer, carefully examine your major systems and components, thoroughly, and comprehensively! You don’t want to buy a Money Pit, and if, you end up, with a major, unanticipated repair, this may become your unfortunate state! Instead of simply, looking and examining, what you foresee, as a problem, it makes sense to consider, obstacles, as challenges, and emphasize, discovering the key solutions, which will make your living experience, a happier one!

Buying, and enjoying, a home, means, knowing, and effectively, using both the sciences, and the ARTS of this process! Are you willing to reduce the stress, many others experience, and enjoy?

Is It Good To Let Your House Stay On The Market During Holidays?

If you think that only the warmer months of the year are good times to sell your house, think again. The colder months brought by the upcoming holiday is also a good opportunity to sell your house. Listed below are some of the reasons you can take advantage of.

Fewer home owners sell during holidays.

The holidays, specifically Christmas, send signal to many homeowners that it is an inappropriate time to let their homes stay on the seller’s market. Many homeowners are also busy with their shopping lists, gift-giving, and Christmas parties.

This creates a unique opportunity for you because their will be fewer competitors. This means more chances for your house to get noticed by more buyers who are also taking the opportunity to buy their new homes.

One precaution to observe is to have your house in its best show condition. Have it clean, simple, and attractive.

Home buyers during the holidays are serious buyers.

The Christmas season is a time when most people busy themselves with various activities related to this festive time of the year. Do you think home buyers during this time will waste their times just to make fun of the homes listed in the seller’s market?

There are various reasons prompting home buyers to grab the holidays as a more serious time to buy a house. There are some who are relocating when the year changes. There are also some people who buy homes for tax reasons. Some buyers also grab the holiday vacations to actually conduct ocular of the houses they see on listings.

And because the holidays is a very busy time, be sure to adjust your showing times to the schedules of potential home buyers.

Less hassles to make your house attractive.

Home staging may be a difficult process to homeowners. But because you are selling your house in a time when decorations are fittingly good additions inside and outside your house, you can be sure that it will bring less hassle to make it more attractive.

Be sure to add decorations that will make the overall atmosphere joyous. Do not over decorate that will tend to make your house look and feel cluttered. You can let your house be a mirror of a home in which your potential buyers can imagine themselves celebrating their next holidays on it.

If your house has spent months in the seller’s market. Do not lose hope. This holiday can be the perfect opportunity for buyers to notice it.

And if you need some professional help, your local real estate agent is always a call away to lend his or her expertise.

Top 5 Reasons To Sell Your House To A Real Estate Investor

You are probably wondering why you would want to sell your house to a real estate investor instead of listing your house with a realtor or selling it yourself. There are many very good reasons that you should consider selling to a real estate investor. I will share with you some different options that you probably have never even thought of before, or knew that you could do. I am going to give you the top 5 reasons why you should consider selling your house to a real estate investor.

1) A real estate investor will buy your house from you no matter what condition your houses are in. What this means to you is that you will not have to make any costly repairs to your house. Now if you listed your house with a realtor they are going to want you to make all the necessary repairs to your house before they will list it. The other reason is that most lenders in today’s market will not lend money to buyers that are buying a house that needs major repairs. Now second of all, if you try to sell your house yourself you will still need to possibly change your flooring and repaint your walls. Most buyers in today’s market will not want to move into a home and start making repairs. Therefore you will have a limited number of buyers that might show interest in your house but, they will want to get your house at a large discount.

2) Real estate investors will buy your house for all cash “as-is”, or they can give you up to full market value for your house if you are a little flexible on your terms. A real estate investor will work with you to find out all of your goals for selling your house. Then they will do their best to meet or exceed all of your goals for selling your home. They are professional home buyers helping people solve their real estate problems. They have a lot of experience buying houses from people just like you in all different types of situations. Just to name some of the situations they can help you with are: if your house is just not selling in today’s market, inherited homes, distressed property, vacant homes, probate houses, behind on payments, divorce, house liens and judgments, rental property, expired realtor listing, bankruptcy or if you are just facing foreclosure. No matter what the condition, area, or situation you have with your house a real estate investor can give you many viable options to sell your house fast.

3) If you sell your house to a real estate investor they can close on your house fast usually in 10 days or less. You will be able to get cash in your hand quickly without any of the hassles of selling your house the traditional way. Real estate investors are professionals with lots of experience in helping homeowners walk through the process of selling their house fast. The reason they are able to close quickly on your home is that they work with a large network of buyers that have cash and are ready to buy houses in your area fast. This is not like a traditional buyer that you will get from selling your house yourself or from a realtor. These types of buyers will take at least 30-60 days to close and that would be only if they make it through the loan process.

4) Real estate investors don’t want to list your house they want to buy your house fast. When you sell your house to a real estate investor they will market your house to their buyers at hyper speed. By this I mean if you sold your house yourself you would probably put a sign in front of your house, put an ad in the newspaper or you might even list your house on the MLS for a flat fee. These things are good but at best you will probably only get a small amount of people coming to look at your house but, most of them will be tire kickers. In today’s market there are more houses for sale then there are people to buy them all. The same goes if you were to list your house with a realtor; they will put a sign in your yard, list it on the MLS and wait for people to call. Most realtors don’t continually market your property through other avenues past that. A real estate investor will market your property immediately after you agree on price and terms. They will market your house with all available advertising to get your house sold fast Plus they have a huge list of buyers who are currently buying houses and have the cash to do it fast. Therefore selling to a real estate investor is your best option if you want to sell your house fast in today’s market.

5) When you sell your house to a real estate investor you will not have to pay anything out of your pocket. In fact they work hard for you and with you to get your house sold with no cost to you and very fast. The reason they can do this is that they actually get a fee from the buyer they sell the property to therefore eliminating any costs at all to you the seller. Not to mention real estate investors will give you a net offer on your house. What this means to you is that you will receive that net offer at closing. Now if you sold your house the traditional way buy yourself or through realtor you will only net at closing on average of 80-85% of the listing price of your home. The reason this is true is that you realtor will take their 6% commissions, then you will have to pay losing costs of 2-3%, then the buyer will want a discount of at least 5% in today’s market. After all of those discounts the buyer will have a property inspection of your house done and the inspector will come back with a big list of possible problems which the buyer will want a discount on. This is usually another 3-5% off. most sellers do not realize that this is actually the amount of money that they will net at closing, after they have waited 4-8 months through this whole process to sell their home the traditional way.

As you have probably realized by now there’s a lot more benefits to selling your house to a real estate investor verses selling your house the traditional way of for sale by owner or with realtor. Is your time and money really worth all the hassles and aggravation of selling your house the traditional way? If you sell your house to a real estate investor you will have a fast, friendly, hassle free sale of your house

Realtors Vs The We Buy Houses Cash Companies

When deciding to sell your home you have two options. You can either use the services of real estate broker or you can sell it yourself to a “We Buy Houses Cash” company. Each scenario has its pros and cons which we have outlined for you below. Every situation is different and we want to make sure you make the best decision possible. We have also outlined some key questions you should ask yourself before making this big decision.

Realtors. Realtors are the best source for selling your property. It’s a proven fact that realtors will get at least 10-20% more for your property than you would if you sold it yourself. It is also a proven fact that you will sell it 50% faster using the services of a local real estate agent. Since most agents are current on up to date trends they will be able to guide you in what items need to be addressed in order to get maximum price for your house. With an agent who specializes in your neighborhood they may have connections to buyers through colleagues and past clients that you do not have access to. An agents network is a very powerful tool to getting your house sold fast. I recommend using bigger cooperate brokers such as Berkshire Hathaway or Coldwell Banker Gundaker.

With any service provider their is a cost of doing business. The average expense for a realtor is 6-7% of the sales price of your home. For example if you sell your home for $200,000 it will cost you anywhere from $12,000-$14,000 at closing. If you decide to use a real estate professional to sell your property then you will more than likely be dealing with financed buyers which means you might possible have to pay seller commissions ranging anywhere from $3,000 – $5,000. Selling to a financed buyer also means once you sign a contract to purchase you will usually have to wait anywhere from 30-60 days to close. Let’s also not forget the cost of inspections. Most cities require the house pass an occupancy inspection. When the city sends there inspector out there may be items that don’t meet city requirement which may get costly to fix. The potential buyer will also hire a private inspector due to there own due diligence to see what the house may need. This can also get costly if the buyer has high demands before deciding to move forward with the purchase. The extra money you make hiring a real estate professional may cancel out with the expense of broker fee’s and inspection expenses.

We Buy Houses Cash Companies. These companies often get a bad wrap in the area. They are often thought of as scam artists or dishonest people when in reality these companies can be of great service to people. Just like anything there are pro’s and cons to taking this route. Since these ugly house buyers are investors they are not going to give you full price for you home. They are usually buying properties anywhere from 50-60 cents on the dollar.

But before you kick these guys out of your house take a moment to think about the benefits of selling to a cash investor. Fast Cash! In most cases these buyers have the cash to buy the property immediately. Not only will it be a cash sale but you don’t have to worry about paying any seller concessions. Often times they will even cover your closing costs which will save you additional money. These cash buyers will also save you on those hefty realtor commissions. Since your property is a for sale by owner there will not be any broker involved. No broker = NO FEE’s! Did I mention there will not be any inspections done. Since it will more than likely be an AS-IS cash sale the buyer will not bring a city or private inspector through which means you don’t have to do any repairs to the property. So even though you may not get full price for what you think your home is worth you will be saving tens of thousands of dollars in fee’s and repairs. It makes the deal even sweeter knowing they can close in as little as 7-10 days if needed. The best part about selling to a cash investor is that you can leave the unwanted items in the property so you can save even more money on moving expenses.

This is a big decision that should not be take lightly. There are some questions you need to ask yourself before deciding which route to take.

1. Does the home need repairs?

2. Is the home outdated to today’s standards and what other similar homes look like?

3. Do I need to sell immediately?

4. Is the repair list too much for me to handle right now?

5. Will a fast sale take the burden off my shoulders of dealing with this property?

If you answered yes to any of the questions above then you will probably want to consider selling to a local real estate investor who has the cash to close right away. A fast cash offer with no realtor fee’s, closing costs or hefty moving expenses may be the best fit for you. If the home has been kept up and maintained pretty good over the years and you can afford to sit on it for a while then your local real estate agent will be the best option for you and your bank account.

Click the following for more information on Berkshire Hathaway or Coldwell Banker Gundaker.

Advantages of Buying a Home Over Renting

Many people are caught between the dilemma of whether to buy a home or rent one. The answers are not easy because each individual’s situation is different, and the answer may also vary depending on the prevailing market rates for buying and renting at any given point of time. However, with the real estate rates at fairly low levels at present, buying a home offers a much superior opportunity in many ways over renting for a majority of people.

Sense of Ownership

Almost everyone has a dream to have their own home someday. Owning a house gives a sense of permanence and ownership to a family. For many homeowners, the value of owning a home and the peace of mind that comes with it is priceless. Apart from the financial advantages, there is an inherent sentimental value attached to owning a home, which cannot be assessed in monetary terms.

Sense of Financial Security

When you own a home, it becomes a long-term financial security for you and your family. It is a safeguard against the future uncertainties of inflation and other economic conditions. If the construction costs and rentals rise unexpectedly in the future, a homeowner remains unaffected by such sudden conditions.

Tax Benefits

In many cases, the interest payments on the home mortgage and even the real estate tax amount may be deductible from your income tax. Therefore, if you pay installments on your home rather than paying monthly rentals, you can build your own home without too much burden on your financial capacity.

Potential for Capital Appreciation

If you have purchased your home during dull market conditions when the prices are hovering at low levels, chances are that you may benefit in terms of capital appreciation over a period of time. A prudent investment can enable you to accumulate or earn a sharp and considerable return, which you cannot expect in case of a rented home.

Better Financial Planning

If you have taken a fixed rate mortgage, you know exactly how many installments you will be required to pay in the future for what amounts. You can plan your monthly budget accordingly and maintain proper and appropriate control over your finances. This may not be possible so easily in case of the rental option because the rent is not in your control once the term of rental agreement is over.

Enhanced Credit Opportunities

Homeowners usually have a better advantage when they need to apply for loans in the future. A homeowner can build equity over a period of time, and borrow against that equity when necessary. Credit card companies and other private lenders typically favor homeowners for the disbursement of credit and loans.

Private Mortgage Insurance *

If the down payment on your home is below 20 percent of its sale value, you can get a private mortgage insurance (PMI) with your lender. PMI helps you to acquire a mortgage with a lower down payment because it protects the lender against any default on your loan. PMI offers an excellent advantage to people who wish to own a home rather than rent one, but do not have substantial finances available for a larger down payment.

Resource:

* http://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx