Title Security's Blog

Comprehensive Title Insurance & Escrow Services


Leave a comment

What’s Up With Housing?

.

The National Flood Insurance Program did not expire last Fri. as feared, but Congress extended it for only 2 weeks. Its new expiration date: Dec. 22, 2017.
.
.
.
.
.
Thinking about buying your first home? Before you can unlock the door to homeownership, you have to take some important first steps. From finding the perfect location to financing your purchase, shopping for your first home has challenges that go beyond curb appeal and interior features.
.
.
80% of millennial renters want to buy a home, yet most say they can’t afford it. However, there are ways to get around that problem.
.
.
.
.
Some home flipping wisdom for investors who want to make sure they are keeping sharp when it comes to effectively — and profitably — flipping homes.
.
.
.
.
.
.
Tampa Bay has seen two booms in house flipping – one in the mid-2000s, when prices headed steadily upward, and again from 2011 to 2014 when the market was flooded with cheap foreclosures. But in the three months ended in September, area flippers made an average gross profit of 54.5%, a drop from 66.5% in the same period a year ago.
Advertisements


Leave a comment

The Compound Effect: Building Your Household’s Wealth

 

Building Household Wealth

Wealth is within reach for many people; however, according to a recent study, 63 percent of Americans said it’s not likely they’ll become rich.1 While younger people are more likely to say they’ll achieve wealth one day, only 34 percent of people aged 30 to 49 and 21 percent of people aged 50 or older say the same. There is no secret to becoming rich: it takes time, sacrifice and good financial sense. Here are a few ways to build your household’s wealth.

Let Compound Interest Work for You

Compound interest is your interest earning interest. While the concept may work against you when you take out a loan to buy a car or use your credit card, it works in your favor when you’re saving money. For example, if your savings is growing at a rate of four percent, your investment will double in eight years and quadruple in 16 years. Your money will grow exponentially the longer you save: the more money you’ve saved, the more your money will grow.

Tap into Your Home Appreciation

Experts expect home prices to appreciate 3.24 percent and grow by 21.4 percent cumulatively.2 If a homeowner purchases a home this year for $250,000, they could earn more than $40,000 in equity over the next five years. Although the home value of the average American family’s home is $165,000, home values vary by market.3 If you’re curious about the value of your home, give us a call!

Build Equity in Your Home

One of the most compelling reasons to own a home is it allows you to build wealth over time. According to one study, the average homeowner has a net worth of $200,000, which is 31 to 46 times the net worth of the average renter.4 Saving for a down payment, especially if you plan to put down more than 20 percent, helps you adopt good financial habits. The more you put down when you buy, the higher your share of equity when you close. Although for the first five to seven years, the majority of your payment will go toward interest, over time more money will be applied to the principal. There are many tools online that calculate your current and future equity in your home, including this one here.

Build equity sooner by choosing a shorter amortization term. While your payment may be higher, you’ll likely qualify for a lower interest rate and will pay less interest over the life of the loan.

Build Equity Faster in Your Home

Mortgage Term 30 Years 15 Years
Loan amount $118,000 $118,00
Months to pay 360 180
Annual percentage rate 4.0% 3.0%
Monthly payment $563 $815
Total interest $84,806 $28,680
Interest savings $56,126

Source: Federal Reserve Bank of Dallas, Building Wealth: A Beginner’s Guide to Securing Your Financial Future

Pay Down Your Mortgage…or Not

Many homeowners grapple with whether or not to pay down their mortgage. On one hand, if you pay it down, or pay it off early, you’ll save money on interest, which you can use to make other investments. On the other hand, if your goal is to be debt free, it’s better to pay off your higher-interest debt, such as credit card debt, first before paying down your mortgage debt. Additionally, if you’re saving for retirement, putting extra cash toward your retirement accounts will help you build a nice nest egg to enjoy later on.

If you decide to pay off your mortgage sooner, here are a few ways to do so:

  1. Pay more money at the beginning of your amortization period and apply it to your principal.
  2. If you receive a tax refund or other windfall, apply it toward your principal.
  3. Make one extra payment each year. You’ll save money on interest and pay your loan off sooner.
  4. Add an extra $50, or another amount you can afford, to the principal of your payment each month.
  5. If you locked into a 30-year fixed loan, refinance to a shorter, 15-year fixed loan. Your payment may be higher, but you’ll pay it off sooner.

Your financial advisor can help you decide if paying off or paying down your mortgage is right for your goals.

Purchase Investment Property

Investment properties provide passive income to your growing financial portfolio. More than 25 percent of Americans say real estate is the best way to invest money you may not need for the next 10 years.5 While many people flip houses to make money—that is, they buy a home at a low price, fix it up and sell it quickly—others purchase multifamily properties to create monthly cash flow to save or to reinvest in other properties.

The longer you own a property, the better investment it becomes as you’ll continue to build equity. While rental costs rise with inflation, your mortgage will remain the same. The best part? Once you pay off the mortgage, your cash flow will increase. Remember to create a budget for maintenance each month, between 10 to 20 percent of the rent you receive, or more if the home is older. This will help you save more money in the long run and allow you to prepare for unexpected repairs.

There are tax benefits to owning investment property as well. You may be able to claim deductions for depreciation, as long as it fits within the guidelines; repairs, travel expenses, interest and more. If you’re thinking of purchasing investment property, talk to your tax professional to get the details.

Achieve More Wealth by Creating Financial Goals

Setting a goal will help you achieve your desired level of wealth. Once you achieve one goal, reassess and set the bar higher.

  1. What is your idea of wealth? Your idea of wealth will change as you earn more money. That’s why it’s vital to set goals along the way. What do you want your net worth to be in 5 years, in 10 years and in 20 years?
  1. Write down your short-term and long-term goals. Once you have determined your goals, write them down. This is the first step towards getting your desires out of your mind and into motion and it will be easier to refer to them later on.
  1. Develop a budget to help you reach these goals. A budget not only helps you understand where your money goes each month, it may also prevent you from overspending. That way you can have more money to save and invest.

 

Your Budget

Income
   Earned    $
   Investments + $
Total Income = $
Daily Expenses –       $
Monthly Bills –       $
Total Available for Investment =

To increase the amount you can invest, make adjustments to your daily spending and monthly bills, if possible. Look for opportunities to save money and transfer that savings into your accounts.

It’s never too late to begin building your family’s wealth. Whether you’re interested in buying a first home, upgrading to a larger home or are thinking of renovating, Title Security has your closing process covered. In the meantime, give a reputable Realtor a call and they’ll answer all of your real estate questions and offer suggestions to help you increase the value of your home.

Sources: 1. BankRate.com

  1. Pulsenomics, Home Price Expectation Survey Q4 2016
  2. Statistic Brain, August 1, 2016
  3. National Association of REALTORS, Economists’ Outlook, September 8, 2014
  4. The Motley Fool, July 30, 2016


Leave a comment

What’s Up With Housing?

.

Check Your CreditThinking of buying a home? Step #1… check your credit.
Buying a home is exciting. It’s also one of the most important financial decisions you’ll make. Choosing a mortgage to pay for your new home is just as important as choosing the right home.
.

.

 Buyers are Stressed: 6 Reasons Why…
A TD Bank survey finds that confusion over necessary paperwork confuses 1 in 3 buyers; unexpected costs confuse almost 1 in 4; and financing worries affect 1 in 5.

.

.

Home AppraisalHow to Prepare Your Home for an Appraisal.
What you need to know about the process, from a veteran certified appraiser.
.

.

.

House FlippingHouse Flipping Increases for the First Time in 3 Years.
The rapid rise of home prices is believed to have played a major role in this increase.

.

.

Trending Home Improvement Projects For 2017Trending Home Improvement Projects For 2017’s Housing Market
Smart-home technology and built-in bars are among the hottest home improvements for home sellers in 2017.
.

.

http://www.TitleSecurityFL.com


Leave a comment

Interesting Housing News

.

Lavish BathroomsThe Master Bathroom is the New Focal Point of the Home.
The mater bathroom continues to become more lavish as homeowners renovate their space. Homeowners are opting to upgrade their master bathrooms over other rooms in the house, even kitchens.
.

.

Housing MarketThis will be the best summer for the housing market in a decade.
Following the strongest spring in 10 years, the residential real estate market should continue to see growth throughout the summer despite some growing economic headwinds.
.

.

Florida Association of RealtorsAll Florida condos need sprinklers or vote to opt-out by January 1st.
The Florida agency regulating condominiums says all condos – not just high rises – must have fire sprinklers installed unless owners vote to opt-out of the requirement before the end of 2016.

.

.

Tampa Bay Housing MarketTampa Bay property values are finally healthy.
Property values are also growing at a safer pace instead of the dangerous double digit annual gains that led to the unsustainable housing peak in 2007.
.

.

.

Flipping HousesInvestment flips: What to know about a fixer-upper.
Investing requires a leap of faith and a vision. Turning a real estate lemon into lemonade requires skills, a realistic financial outlook and lots of patience.

.

.

http://www.TitleSecurityFL.com

 


Leave a comment

Recent Housing News

 

Floor Plan NinjaRealtors: How would you like a Ninja as a reliable friend?
Please come to Tuesday’s ‪‎Coffee Corner‬ and learn how Floor Plan Ninja can make you more successful.

.

.

.

Home Equity PostGreat News! Florida consumer sentiment rises in March.
The biggest spike was in Floridians’ one-year expectation for personal finances, which rose 6.1 points. Overall, the index was 1.6 points higher than in Feb.

.

 

Dream HomeMore & More Singles Are Falling For Their Dream Home  

.

.

.

Millennial HomebuyersHow Boomers Can Appeal to Millennial Home Buyers…
Showing that the property can accommodate a party and is tech friendly are a few ways to appeal to younger house hunters.
.

.

Housing Forecasts5 Forecasts for Housing Over the Next Five Years.
National Residential Economic Report sees a mostly healthy housing market, with a few caveats.
.

.

.

Improving Housing MarketThe Housing Market is Poised to Continue Improving…

Analyst expects more sellers to enter the market as prices rise, easing inventory shortages.

.

.

Vacation & Investment Home 2016 SurveyVacation Home Sales Slow Down, While Investment Sales Surge.
Prices rise for both as an inventory squeeze becomes apparent. The South, particularly Florida, was the most popular destination for vacation buyers.
.

.

..

Home CreditMortgage lending grew by 43% in 2015.   Contrary to some fears that the Consumer Financial Protection Bureau’s new disclosure rules would severely dampen mortgage lending in 2015, a new report from Equifax shows that exactly the opposite took place, as mortgage lending grew by a drastic margin in 2015.
.

http://www.TitleSecurityFL.com

 


Leave a comment

Interesting Housing News

SURE HouseIntroducing the SURE House: Sustainable and Resilient
SURE House utilizes solar power and passive strategies while also designed to withstand flood waters and high-force winds.

.

.

Real Estate Investment SecretsFive Estate Planning Secrets of Successful Real Estate Investors.  Making sure your family benefits from your real estate investments takes advance planning.

.

.

Weathering The Downturn7 Lessons from the homebuilding downturn… The prolonged downturn’s impact on the home building industry has been profound. The market dropped lower and stayed down longer than anyone anticipated it would. Some companies weathered the storm better than others, but every­one was affected.

.

.

Florida Home Sales HealthyRealtors: Florida housing set to get 2016 boost…
The numbers from 2015 showed home sales and listings healthy.
.

.

Why Cities SucceedLucky Eleven: Count the Tell-Tale Traits of a City That Succeeds.  These eleven signs may serve as health indicators for a city likely to gain economic strength.
.

.

http://www.TitleSecurityFL.com

 


Leave a comment

Interesting Housing News

No Housing Meltdown Expected5 reasons a 2007-style real estate meltdown is unlikely now…  The real-estate industry is on much more solid footing.

.

.

Residential Design TrendsThe Most Persistent Residential Design Trends of the Next 10 Years… An analysis ​of what are predicted to be the decade’s most prominent residential design trends in terms of home layouts, products, features, and systems, as well as neighborhood and community design.
.

.

Millennial Housing IdeaCould This Be The House That Will Turn Millennials Into Homeowners?  Millennials are having a hard time entering the real estate market. This affordable, sustainable house is trying to change that.

.

.

All Cash Real Estate PurchasesThe Government Wants to Know Who Is Buying Luxury Real Estate in New York and Miami.  All-cash home purchases are not just the bane of traditional home buyers’ dreams; they could also be a cover for money laundering.

.

.

Smart Shower HeadThis Showerhead Knows When Enough is Enough…
The Hydrao showerhead will change colors to alert you that you are using too much water.

.

.

http://www.TitleSecurityFL.com