Lauren Davis
REALTY EXECUTIVES Boston West | 508-254-0449 | Lauren@LaurensListings.com


Posted by Lauren Davis on 11/8/2017

There’s many different reasons why you might want to consider choosing a mortgage payment over a monthly rent check. But there’s also a few drawbacks to buying a home. One big obstacle is that of the down payment. When you’re renting a property, there’s a lower amount of money that you’ll need to come up with in order to secure a place to live. With a 20% down payment required to buy a home, saving for that down payment seems a lot more daunting than renting. There’s so many financial advantages to owning a home.  With quite a few factors to consider, buying a home may not be so far out of reach for you. 


Rates Are Low


Even though mortgage rates fluctuate from time to time, they’re still low enough that it makes sense to buy a home and make it a much cheaper monthly cost than renting.  


Rental Rates Are Not Guaranteed


Your rent is not guaranteed to stay the same over time. The price can go up after the lease ends. Another problem with renting is that the landlord can decide that he wants to make improvements to the building at any time, even improvements that you’ll be required to move out for. You could end up in a bind fairly quickly if you’re put in this situation. 


If you buy a home, the only change to your expenses would be if you choose an adjustable rate mortgage or if there’s changes in property taxes and insurance rates. Your expenses are more predictable when you buy a home. 


You’ll Build Equity When You Buy A Home


One of the top reasons to buy a home is to enable you to build equity. Over time, you’ll have a piece of property that will provide cash that you’ll be able to tap into when needed. Home equity doesn’t replace the other ways that you save, but you’ll have another source of financial backing. Your monthly mortgage payment is in essence going into the “bank” of your future. 


There’s Plenty Of Tax Breaks For Homeowners


This is one known financial benefit of owning a home. The initial years of your home ownership mainly go towards paying down the interest on the home. The good news is that this expense is tax deducible. Also, you’ll benefit financially when you sell your home as you won’t have to pay tax on gains you have earned if you live in your home for at least half the time within the 5 years before you sell. Home insurance and mortgage insurance are also tax deductible. 


While the idea of buying a home may seem like a feat, financially, it’s a smart decision. When you’re renting, you don’t see a return on the monthly check that you shell out. If you own a home, you own it and it’s your to do with as you please. You get out of your home what you put into it. 





Posted by Lauren Davis on 2/18/2015

Year after year, study after study, good market, down market the story is always the same...owning a home is a good investment. Not only does it build wealth but it also provides many psychological benefits too. A survey released earlier this year by the magazine Better Homes and Gardens found that eight in 10 respondents said homeownership is still a good investment and believe owning a home is a smart financial move and a source of pride. Here are some results of the 2,500 people surveyed online:

  • 86% of home owners still feel owning a home is a good investment.
  • 85% feel “owning a home is one of their proudest accomplishments.”
  • 69% of Americans who don’t currently own a home agree with the statement, “No matter what happens in the U.S. housing market, owning a home is still an important goal in my life.”
  • 68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.
 




Categories: Buying a Home   Real estate  


Posted by Lauren Davis on 7/2/2014

For the past several years there has been some confusion over whether it has been a better deal to rent or buy a home. Buying has always been the best long term investment. With the changes in the market it is now clear that in almost any situation buying is the best bet. Rents over the past few years have been on the rise and the demand for rental housing has been shrinking rental availability raising the rents and the competition for acceptable units. Rents have been increasing at about a rate of 2.5 percent a year while home prices have been dropping at about 3.1 percent a year. This makes buying a much better option. Lately, there has been an uptick in the home buying market and in some price ranges inventory is low for prospective buyers. Because prices and mortgage rates remain at all-time lows this is a perfect time to get out of a rental and into your own home. If you are looking for some hard numbers on your own personal financial picture the New York Times has an easy to use calculator that will help you determine how much you will save by buying a home. Click here to use the calculator.




Tags: Buy vs Rent  
Categories: Uncategorized  


Posted by Lauren Davis on 11/28/2012

To buy or not to buy that is the question. There are reasons for or against homeownership on both sides of the fence. So here are the pros and cons of buying a home. You decide... Pros: 1. It Costs Less- With record low interest rates, and low home prices a mortgage payment on a house can be less than a rental payments. 2. Equity -If you own a home rather than rent you are building equity. If you pay rent you have nothing to show for it. If you own a home you are building equity. Even if housing prices stay flat part of your mortgage payment goes towards the principal balance and eventually you will own the home. Cons: 1. You Could Get a Better Money Return-A home may not be the best return on your money. You may find a better return on capital in the stock market. If you are just looking at it in a strictly financial way there are better investment strategies. Historically, the S&P 500 has returned an average of 13.4% -- 4.8% higher than the 8.6% average return on housing. 2. It is a Big Commitment-You can't just sell your house and move quickly. It is a long term decision. If you job requires frequent moves this can be a significant consideration. Now that you have seen some of the pros and cons the decision is ultimately up to you and what is best in your circumstance. The pros cannot be disputed. Low rates and prices almost make buying a no-brainer if it fits within your financial situation.





Posted by Lauren Davis on 11/21/2012

If you think the dream of homeownership is lost; think again! The American dream of homeownership is quickly becoming more and more feasible in  2012. There are many benefits of owning a home.  Due to negative press about the real estate market, buyers are skeptical of purchasing with the uncertainty surrounding the housing market. Here are 12 reasons to buy a home in 2012. 1. Rents are at an All Time High- Due to the influx of foreclosures and fewer people making a decision to buy a home, the demand for rentals the past few years has increased. All prices are based on supply and demand and that is pushing up rental prices. 2. The Worst is Over-From the market peak in 2006, the S&P/Case-Shiller index of 20 housing markets is down 32 percent. What does that mean? The housing market could be at a turning point. Signs are showing we are moving from steeply falling home prices to an extended period of stabilizing prices.  You can't predict the market and you won't know when low prices are over until they start to go up. Stability is your first clue. 3. Historically Low Mortgage Rates-Long-term mortgage rates fell to new lows in January. According to FreddieMac, a 30-year fixed-rate mortgage averaged 3.89 percent in the week ending Jan. 12, falling from 3.91 percent last week and marking the lowest since Freddie Mac began keeping track. A 15-year fix fell to a record low 3.16 percent. 4. Mortgage Rates Won't Stay Low-Just like you can't predict when housing prices will rise; you also cannot predict the mortgage market. It is however unlikely that mortgage rates will remain low for long. This is especially true if demand starts rising and prices stabilize. 5.  Less competition-The slow sales pace is proof that there are fewer buyers out there. That is good news for a serious buyer; they will be less likely to end up in a bidding war. It doesn't mean that homes that are priced aggressively to sell will not end up with lots of offers. Wait too long to jump in the buyer pool and there may be more competition. The market is showing signals of recovery, meaning demand will pick up. Being a little ahead of the curve gives buyers more elbow room. 6.  Appreciation-Odds are that buying a home at the current rates can almost ensure your home’s appreciation in the future.  With the double advantage of low prices and low mortgage rates the perfect storm for home appreciation is brewing. 7. Build Equity-Your home can actually work as a wealth building or even savings plan for you. Some homeowners are now adding money to their monthly payment to decrease the principal balance of their loans at a much faster pace.  This is called equity building. Because home equity is the largest single source of household wealth for most Americans it is a smart move to ensure financial stability. 8. Tax Deductions-If you are looking to save more money on your taxes than buying might just be the answer. 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. 9. Homes are More Affordable- According to Kiplinger, the percent of family income consumed by a mortgage payment is at record lows. The average family pays only 12% of their monthly income to pay for today’s mortgage. Affordability has not been that low since 1971. Additionally, the Fed's financial obligation ratio for mortgage holders have fallen to levels not seen since 2003. 10. Moving Up is More Affordable-If you are thinking about buying a bigger or more expensive home this is a great opportunity to save money. Homes in a lower prices range have not lost as much as higher-end homes. For example, if your home in 2006 was worth $125,000 it may now be worth $100,000. The home you may be looking to buy in 2006 was priced at $350,000 but now is under $300,000. You have made a gain of $25,000 in your upward move. 11. Buy Low, Sell High-The uncertainty surrounding the housing market will wane. When the housing market rebounds prices will go up.  Owning a home may eventually be more than just a pride issue, it could also become a profit through a home sale. 12. Pride of Ownership-There are more benefits than just financial gain in homeownership. Some of those benefits may be painting the walls the color of your choice, or landscaping the yard, or having a pet. No matter the reason; homeownership will give you pride.




Categories: Buying a Home