Porcupine Real Estate


Posted by Mark Warden on 9/20/2018

 

Renting is a great short-term housing solution for millions of Americans each year. And, for those who don’t want the responsibilities of home ownership, it can also serve as a long-term lifestyle for those uninterested in buying a home. However, if you do hope to someday purchase a home, there are several reasons it is one of the best financial decisions in the long run.

Finding out when is the right time to buy a home is difficult. You’ll have to consider your current budget and future financial goals, your employment situation, and personal lifestyle preferences.

Mortgage rates through history

One of the features of home buying that is largely out of your control is the historical average mortgage interest rates. While your specific rate will be based on things like your income and credit score, as well as the type of mortgage you choose, real estate trends will also have an impact on the rate that lenders use.

Rates are, on average, lower in the last five years than they were throughout the 80s, 90s, and 00s. With rates under 4%, these levels are unprecedented in the last 3 decades. However, last year did see a slight increase to just over 4%.

What are your long and short-term plans?

Many people who are considering buying their first home are more concerned with whether it’s  financially feasible than if it fits into their life and career goals. Before you start shopping for houses and contacting lenders, it’s a good idea to sit down with your family or significant other and start thinking about your timeline. Are you prepared to live in your next home for 5-7 years? This a good baseline for the amount of time you need to stay in a home to make it worth the expenses. 

Are you prepared for the extra workload?

Homeownership is work. Aside from just having to mow the lawn and take out the garbage, you’ll also be responsible for repairs and maintenance that your landlord was required to do when you rented. Some repairs can be costly and require calling in a professional. Just like owning a car, homeownership has it’s associated upkeep expenses. However, with that added responsibility comes independence. You can paint and change your home how you see fit without worrying about losing a security deposit.





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Posted by Mark Warden on 3/27/2015

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 Mark Warden on 1/23/2015

You may be considering buying a home but it is hard to know if you are ready to be a homeowner. It can be a big step. Buyers that educate themselves on the process and set realistic expectations have the best experiences. To gauge whether or not you are ready to own your first home you should ask yourself some serious questions.

  • Are you in a lease or is your living situation easily changed?
  • Do you need to remain in your current community or would you be willing to move?
  • Do you have the time and resources necessary to make your first home purchase a success?
If you have answered these questions favorably you may well be on your way to homeownership. The next step is to evaluate your financial situation. Here are some questions to check your financial readiness.
  • Do you have a steady source of income?
  • Do you know your credit history?
  • Do you have a down payment ?
  • Are you ready for the financial responsibilities that coincide with home ownership?
If your answers to these questions are positive then it is time to get the loan process started to see how much you can afford. A reputable lender will give you realistic expectations and many offer a free consultation for buyers seeking pre-approval. Now it is time to start your search. Working with an agent that you trust and are comfortable with is very important. My skills include educating you about the buying process, negotiating, having your best interest in mind and helping you find a perfect first home while hopefully saving you time and money.




Categories: Real estate