Hey Wisconsin, are You Pondering The Question…Rent vs. Own?

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The American Dream. In most cases, this tag line refers to the accomplishment of purchasing and owning a home in the United States. Yet for some, renting has been a long-term situation and the true benefits of home ownership may be unclear or confusing.

Aside from the obvious benefits to homeownership (i.e. – your walls, your decisions!), there are numerous financial benefits of owning a home over renting. Here are the top 7:

  1. Homeownership builds wealth over time.
  2. Equity is typically achieved with every payment.
  3. Mortgage tax deduction benefits at year end.
  4. Tax deductions on home equity lines.
  5. Capital gains exclusions for primary residences.
  6. A mortgage is like a forced savings plan.
  7. Over time, buying is cheaper than rent.

We could elaborate much on each of these 7 benefits, and your accountant or tax specialist can also help you further understand how these may impact you. But first and foremost, the investment you make in the purchase of your home far outweighs your financial position when renting, with long term benefits and asset protection. Home buying is smart money management, especially in today’s market with low interest rates and attractive mortgage options!

Energy Efficiency in Newly Built Homes

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While it doesn’t feel like it today, the winter months are approaching, and some areas of the country will get cold pretty soon.  This means that heating costs will be on people’s minds.  They can potentially save thousands of dollars each year with a better energy efficient home.

Newly built homes have many amenities such as access to jogging, hiking and bike trails, sports complexes and aquatic centers. Builders and developers are also giving more attention to green lifestyles and energy efficiency.

Almost half of the energy you use in your home goes to heating and cooling. Newly built homes take this into consideration and have come up with ways to battle the loss of energy and help keep money in your pocket.

Here is a list of how they do it:

  • High Performance windows- improved frames and protective coatings keep the heat in during winter and heat out during summer.
  • Insulation- Quality insulation as well as special attention during installation makes a huge difference in energy use.
  • Air Sealing- Comprehensive air sealing helps reduce maintenance costs and lower monthly utility bills.
  • Use of recycled materials as well as the latest energy efficient building materials currently available.
  • Programmable thermostats
  • Water management systems to lower water heater costs.

Newly built homes offer these energy efficient options, which will greatly reduce maintenance, and utility costs. Giving you some peace of mind going into the cold winter months.

Wall Street Journal…. Mortgage Standards are Easing, Fed Finds……

Large banks just don’t get it – “stupid is as stupid does” is all that comes to mind regarding current commercial and industrial loan standards and mortgage loans for homeowners.

August 5, 2014 Wall Street Journal…. Mortgage Standards are Easing, Fed Finds……

The Federal Reserve’s quarterly survey of bank Sr. Loan Officers showed that nearly half of large banks and foreign institutions believe the standards for riskier syndicated loans to companies with non-investment- grade or junk, credit rating are easier than post- 2005 norm.

What does this really mean? Banks are making risky loans again and that’s how we got in trouble in the first place!

Banks said they had eased standards on commercial loans and industrial loans primarily because of more aggressive competition from other lenders, and amid growing competition between banks and a slow growth low interest-rate environment. Some have also said an improving economic outlook has contributed somewhat.

What does all of this mean for homeowners? Even with the easing of standards, and their willingness to make risky commercial and industrial loans, if banks can’t get the rate of return they are looking for they will hold back and not make mortgage loans with the excess money they’ve been required to put in their stockpiles! They are just more cautious about lending to households.

Top policymakers have raised concerns over the past year that the tight credit standards could hamper the housing recovery. While standards should have ratcheted up after the housing bubble, it has now become the case that any borrower without a pretty pristine credit rating finds it awfully hard to get a mortgage.

What does this mean? The very same banks that caused this trouble will not give loans to the people who lost their houses. Former homeowners who had short sale or foreclosure, the only blemish on their credit report, can’t get the banks to give them a loan. Instead, they keep them financially handcuffed for up to seven years. This is why the market has not rebounded as expected – banks won’t shorten the time span to two years. It would be that simple and cost the taxpayers nothing!

Also, if you want to spark home buying amongst the baby boomers and the millennials, quit talking about killing the tax advantages…..it breeds uncertainty.

Remember, history always repeats itself….the oil embargo in the 1970’s change the US driving pattern for the next 10 years and this last recession will change the spending habits of US consumers for the next 10 years. We must educate the public that home ownership is still the American dream and lenders need to get on board!

 

 

20 Reasons to Buy New Home Construction!

 

  1. It’s fun. You get to design it. And, it’s under warranty!
  2. Floor plan is designed for you and your family and your lifestyle
  3. Everything is new, never used and selected by you
  4. More energy efficiency saves $$thousands over time
  5. New homes cost less to run and maintain
  6. Renewable energy options like solar
  7. Community amenities
  8. Superior safety codes and design
  9. Advanced technology and energy-saving appliances
  10. Better paints, cabinets and materials for more healthy home
  11. Hot new trends available
  12. Quicker appreciation over the first five years
  13. Special new home neighborhood friendships
  14. Special financing incentives
  15. Builders must be licensed, bonded and insured
  16. Frame and final walk-thru
  17. Periodic inspections and code checks
  18. Builder has a complete team of professionals
  19. No clouds or liens on the title
  20. Friends, family and co-workers can help

NEW HOME BUYERS DICTATE TRENDS IN NEW CONSTRUCTION OF HOMES

If you are looking for a time-tested plan, these Builders features rank at the top of the charts Nationwide. Builders have quickly discovered that consumers want homes that are built quickly yet by an expert, and are economical and functional.

New home builders are delivering the features that buyers want the most:

  • New home construction buyers want open concept homes that offer spacious, easy going, flowing, floor plans and high ceilings. Outdoor Living Spaces that feature fireplaces are essential to buyers even in seasonal climates.
  • Believe it or not, new home construction buyers are gravitating toward newer, bolder colors rather than neutral décor. Designer Jonathan Adler from Kohler is bringing vibrant sinks to the kitchen.
  • Modern kitchens are the focal point of every home and new home construction buyers want the latest and greatest designs including cabinets, lighting, countertops and state-of-the-art and energy efficient appliances.
  • Builders know that their buyers want large linen closets and smart storage options. Large walk-in closets appeal to today’s new home construction buyer.
  • 2 or 3-car garages are also huge on the new home buyers’ criteria list with lots of work and storage space.

With all this in mind, buying a new construction home vs. resale WINS hands down.

Preparing YOU and Your Home for Sale

Over the next week we will be showcasing our Seller Secrets Series! You and your home will be ready for sale in just 4 simple steps! 

The first step in preparing your home for sale is to prepare yourself! Selling your home can be an emotional experience, but if you keep your eye on the goal of selling as quickly as possible for the best possible price, you can channel those emotions into excitement for the future!

Preparing yourself:

-Write down your motivation for selling and keep it in a place you can easily reference like your desk at work or your car. Unfortunately the bathroom mirror won’t work in this case since your potential buyers will see it too!

-Picture yourself handing the keys to the excited new owners.  Your home will be in good hands.

-Say goodbye to each room in the house as you tidy it. Jot down fond memories that come to mind – you can take them with you anywhere!

-Pack up personal photos and heirlooms. Buyers have a hard time imagining themselves in a new home when your photos are out. You want them to be picturing themselves in the house so they hurry to make an offer! 

Welcome – Proven Realty Partners

Homes for Sale Madison, WI, Proven Realty Partners

Welcome to the NEW Proven Realty Partners blog from Madison, Wisconsin. With over 24 years of combined experience in the Real Estate business our team has learned many proven tips and tricks that we are excited to share with you to help you OWN, SELL & LIVE WELL!

Proven Realty Partners is the same highly-skilled team from Provenance International Real Estate Partners, but with a new, refreshed look and a ton of energy to help our clients OWN, SELL & LIVE WELL!