Where's the Maintenance Man?!?!?!

One of the biggest fears of owning a home is maintenance. Who will be responsible? Who will change my air filter? Who will spray for bugs? Who will fix the garbage disposal? Who, I say, who?

Well, this is a bit of a conundrum when dealing with home ownership.  Not really! Not hardly! There are these lovely thing called emergency funds or home warranties. Since I cannot assume you all have graduated from Financial Peace University, we will go with the later.

Home warranties should be provided for the you, the buyer, every single time you purchase a home. It's an added layer of protection just in case something goes wrong and breaks moments after you sign on the dotted line. You will be glad you chose to get one. 

In many cases, these home warranties save the day. I can recall getting a washer tub in the washing machine, a HVAC, and a hot water heater replaced since I have had  a home warranty.  These crazy days of appliance failure have been smooth and creamy because of my home warranty.

So, if the question is whether you need one or not, the answer is yes! Now, I am sure they will not change your air filter, but they will definitely come over and make broken things work again. The price ranges from $27-$75 per month, and worth every penny. Of course, there is a service fee when they come out. This fee ranges from $50-$125 depending on the issue and the company. Some charge a flat service fee while others have varying fees depending on the issue. 

As with everything, you should comparison shop to make sure you are getting your money's worth. Find out which one works for your budget and get one without delay! Preparation today will lead to a worry free tomorrow. 

Here are some options although there several others:

www.globalhomeusa.com

www.ahs.com

www.orhp.com

If you want customer reviews of the these programs and more: 

www.homewarrantyreviews.com

Genile L. Morris, Realtor 

My visit with Alachua County Department of Growth Management...

Today, I was on a mission. A mission to find my future homeowners some real answers. Answers to questions they didn't know they had. Questions like,"What funding is out there for me?" or "What makes me qualified to buy a home?" or "Can I use these opportunities together to make a larger down payment?"

Before you count yourself out, there is one question that you have already answered in your mind, not realizing what is available out there.

Q: Can I afford a home??? What funding is available for me?

A: Of course you can!! Your income does not need to be six figures to buy a house. It doesn't even need to be $50,00 a year. There are at least two programs that can help you. Alachua County SHIP (State Housing Initiative Program) 

How do I know? Let me tell you what Alachua county is doing for their residents. See below...

I know you are saying,"Genile, I have no idea what that means." No worries, I have an explanation for you. In essence, if you are a single person and earns up to $32,700 per year, you qualify for first time home buyer assistance! If you are two people and earn up to $37,350 per year,  you qualify for first time home buyer assistance! If you are a family of four, and the total income of the house is $46, 650, you qualify for first time home buyer assistance! People, that means that Alachua county will give you up to $7,000 towards your down payment, closing costs, and repairs(if needed). That is some really good news....

Q: How do I get this money?? 
A: There are a few steps that you must follow...

1. Register for the next Home Buyer Education Course, call NHDC (Neighborhood Housing Development Council) at 352-380-9119 . Tell them Genile Morris from Bosshardt Realty sent you. The next class is Sept. 28th. The cost is $55 for couples, and $50 for individuals. Don't worry, there will be a refund when you buy your house within one year of the class. 
2. Get pre-approved with a SHIP certified lender...guess what? I know one! She is awesome. Her name is Becky Bessinger. She can be reached at 352-240-2694 . Give her a call! She will let you know how much house you can afford, or if you need to do a few things before you can buy ( I will have some information on that later on...). 
3. Call me, 352-339-8492 (or a realtor of your preference), and let me(or your realtor) know what side of town you want to live on. In addition, you want to tell me(or your realtor) what is really a must have (deal breakers) and what you really want (a desire, but not a deal breaker). 
4. Once we find a house, we will submit an offer(a contract stating hte amount you are willing to pay)...and, with a few more activities after the offer and acceptance by the seller (agreement to your offer), YOU CLOSE!! Close? Yes, that means you have purchased your home! 
5. Move in, and invite me over for dinner! (You don't need to do that, it was a joke, but I would like to come to your house warming, I may just bring a gift...)

There are some other types of funding available too! Can you believe it? Well, you should! I won't overwhelm you with that now...but get started. You do not want to miss out on this awesome opportunity.

Ok! Ok! Stop pulling my arm! I will give you the other one.

Q: What are the other types of funding available? 
A: Florida Bond Program: This amount is up to $10,000 ( I called one  of the lenders, and she explained the increase)

Q: How do I qualify for that??
A: The income limits are a bit different. You cannot earn more than $66, 720 for one to two person household. If you are a house of three to four,  the income cannot be more than $77, 840. The exception is you must have a credit score of 640...You cannot have owned a home within the last 3 years. If you are a purchasing in a targeted area, you do not need to be a first time home buyer. For more information, you can call 800-388-1970 or 850-432-7077. Don't worry about the area code, they serve several counties in the state.

Q: Can I combine these for one sizeable down payment? 
A: Yes! How awesome is that!?!? You must qualify for both programs though...do you realize that you can qualify for up to $17,000 with these government programs...that is pretty nice.

Now, It's GO TIME!! Go for it! You can do it! Call me if you need some assistance or some more information. I am here to help! If you want to call the Alachua County Growth Management Housing program yourself, the phone number is 352-337-6283.

Have an awesome day!!!
Genile Morris, Realtor
Bosshardt Realty Services LLC

Cheaper to OWN than rent regardless of mortgage rate (REPOST)

SAN FRANCISCO – Mar 20, 2013 – Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For homeownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

In the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. The include:

Miami: 43% cheaper to buy
Fort Lauderdale: 53% cheaper to buy
West Palm Beach: 56% cheaper to buy
Cape Coral-Fort Myers: 45% cheaper to buy
North Port-Bradenton-Sarasota: 51% cheaper to buy
Lakeland-Winter Haven: 55% cheaper to buy
Palm Bay-Melbourne-Titusville: 50% cheaper to buy
Orlando: 51% cheaper to buy
Tampa-St. Petersburg: 55% cheaper to buy
Jacksonville: 54% cheaper to buy

Individual own-versus-rent savings will vary depending on details, but Trulia posted an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

© 2013 Florida Realtors®

 

Renting vs. owning: Which path is right for you? (REPOST)

Renting vs. owning: Which path is right for you?

June 21, 2013|By Leslie Mann, Special to Tribune Newspapers

Rent or own? Each has its merits, but the recession upended conventional wisdom that homeownership is right for everyone. (Jeremiah Simpson, iStockphoto)

Ritter Elizabeth Hoy has rented an apartment in West Chester, Ohio, for the past three years.
Renting works for her because she admits to having "no interest in fixing things; I can barely change a light bulb. Someday, if I get married, I'll have a house and a yard and I'll share the chores, but not now."

On the other hand, Barry Maher and his wife, Rose Fennell, bought a house in Corona, Calif., in 2000, to shorten Fennell's commute. Despite market fluctuations, their home value has increased at least 20 percent.
"We've built up our own equity instead of a landlord's equity," Maher said.
Rent or own? Each has its merits, but the recession upended conventional wisdom that homeownership is right for everyone. Here's why:
No longer does your real estate investment necessarily grow steadily in value after you buy it.
No longer is making real estate your No. 1 investment the best decision as it was when grandpa sank his every penny into his first house. As pensions go the way of the milkman, today's smart investor builds a diversified portfolio that ensures when one asset is down, another is up.
No longer does every household have a "honey" to tackle the honey-do list that comes with homeownership. More homeowners are single. And many couples have hectic, dual-career lives that leave little time for lawn mowing and gutter cleaning.
No longer is graduation, marriage, homeownership and children the prescribed route for young people. For many, homeownership must wait.
Yet, even during the housing bust, owning a home yielded a higher net worth for buyers than renters with similar demographics, according to a study by Michal Grinstein-Weiss, associate professor at Washington University in St. Louis, published in the April issue of the journal Housing Policy Debate.
"'Responsibly written mortgage' are the key words," Grinstein-Weiss said. "If there are low upfront costs, low interest rates and the lenders do their due diligence, owning a home can benefit the buyer."
A financial planner can help you weigh your options.
"We look at all the costs to see how the decision will affect you financially, short term and long term," said Garth Scrivner, a certified financial planner with StanCorp Investment Advisers Inc. in Albuquerque, N.M. "The economy had made people leery of buying, but not buying could mean a missed opportunity."
Much depends on your life stage, Scrivner said.
For instance, it might be a good decision for a couple in their 30s to buy a house if they plan to stay put for the next 20 years. But that same couple may be better off renting after retirement, when they want to be able to fly south for the winter while a landlord looks after their home.

Renting suits you if:
Housing market fluctuations give you the jitters.
You do not have enough money for a down payment. This is not only an obstacle for young people with few assets, Scrivner said, "but also for retired people with fixed incomes who need this money to live on." Yes, there are zero-down mortgages, but they come with high interest rates.

 

You have no time or inclination for home repairs and chores. Hoy said: "The carpet needs cleaning or the broken pipe needs fixing, and my landlord does it."
You have no emergency fund. If you tend to be short on cash at the end of the month, you probably do not have enough money to cover household crises.
You cannot afford homeowners association fees. Condos and town houses come with monthly fees that cover maintenance of common property. Many single-family-home neighborhoods have the fees too, but they are smaller and cover things like neighborhood parties or lifeguards for the association's pool.
You hate real estate taxes. If you own a home, you pay these out of pocket and you fret every local referendum that elevates them. If you rent, they are built into your monthly check.
You do not know where you will be in five years. Chances are, you are not loyal to your employer like your dad was and vice versa. Renting buys you flexibility and mobility.
You do not know the local housing market. Like dating instead of marrying, renting allows you to get to know the area without long-term commitment.
You have lousy credit. If your credit score is low, your mortgage application might be rejected.

Owning a home suits you if:
You want security. When the landlord holds the title, he can sell the property and send you packing. If you own it, you move when you want to. "We like knowing the house is ours and this is our decision," Maher said.
The mortgage interest tax deduction benefits you. If you qualify for this, it is a financial upside of having a mortgage.
You love remodeling. If spackling and painting are relaxing, not taxing, for you, use sweat equity to increase the value of the home you buy.
You love to decorate. Renting bridles the interior designer in you, but owning a home means you can decorate to your heart's desire and spend all your downtime surfing Pinterest.
Your kids are going to college. The Free Application for Federal Student Aid, the federal form colleges use to figure out if your children qualify for financial aid, does not count home equity when it tallies your assets and determines your "estimated family contribution."
You appreciate today's low interest rates. While higher rates scared off buyers in the past, today's low rates mean a lower monthly mortgage for you.
You cannot find a rental. Availability of rentals varies by market. And having a pet narrows your prospects in some locales. Hoy said she was lucky to find an apartment that would accept her Labrador retriever.
You want fixed housing costs. While the landlord is free to increase your rent annually, your mortgage (if it is a fixed-rate mortgage) stays the same. Over time, it becomes a smaller percentage of your expenses.