Many South Central Vermont renters are finding that they get more ‘bang for their’ buck if they buy a home rather than rent one. With affordable prices, low interest rates and tax incentives, South Central Vermont home ownership makes more sense than ever.
7 Reasons to Buy Rather Than Rent South Central Vermont Home
1. Buying doesn’t always cost more.
The Associated Press reports the gap between buying and renting has decreased $550 in the last three years.
2. Affordability is at an all-time high.
Nationwide, prices have declined by nearly 20-40%.
3. Tax benefits for home ownership saves money.
The biggest tax break is the mortgage interest deduction. Most of your mortgage payment goes to interest which is tax deductible. Property taxes and mortgage insurance are also tax deductible.
The current economic climate has created an extremely competitive market for South Central Vermont home sellers. High inventories and the abundance of deals on foreclosures puts to pressure on South Central Vermont home sellers to have properties in showing condition and to be priced right. Many sellers want to initially price their property on the high end of the market and underestimate the costs of having a property sit on the market unsold. Maintenance costs, taxes and insurance are ongoing. Another thing to consider is the benefits of having invested the money that can be made with a fast sale vs. the cost of sitting on the market for a long period of time.
The saying ‘time is money’ is never more true than when selling a South Central Vermont home, For example,
In January, you put your property on the market for $500,000. In February, your agent recommends a price reduction of $10,000 to $490,000, but you decide to wait out the market a little longer. Assuming your monthly payment on the property is $4,000-5,000 per month (including mortgage, property taxes, and insurance), and it hasn’t sold in six months, by June you have spent $24,000-30,000. This $30,000 expense has lowered the property value from $500,000 to $470,000. If you had lowered the selling price in February to $490,000 and obtained a faster sale, you would have had ended up with more money in your pocket.
South Central Vermont property values recently have been declining 5-10 percent a month. A property that might have sold in January or February for $490,000, will most likely only sell for $440,000-465,000 in June. So how do you sell your South Central Vermont home faster and for more money?
Selling South Central Vermont Home Fast and For More Money
1. Take a look at comparable home sales in your neighborhood and price at your 5% below the last comparable sale within a three-month prior period.
2. Work with an experienced real estate agent who has market knowledge in your neighborhood.
3. Have your South Central Vermont home is saleable condition. Have your ‘honey-do list’ complete, your yard ship-shape and your home ready to show at a moments notice.
Your efforts will be rewarded!
It doesn’t matter if you are buying your first South Central Vermont home or are a veteran home buyer, you will have list of ‘wants’ and ‘needs’ for your new South Central Vermont home. The ‘wants’ are things that would be nice to have such as a gas fireplace or granite counters. The ‘needs’ are things like, well a ‘bathroom’ or the number of bedrooms to suit your family. It is rare that you will get all your ‘wants’ and needs’ in the home you buy.
The key to maximizing your South Central Vermont home investment today is distinguishing between the types of ‘wants’ and ‘needs’ you’re better off buying as part of the property, and those you could add later without too much trouble and expense. Here’s some information to help you prioritize the amenities on your list.
Location is the one thing you can’t change about a property. Location is about being in a desirable neighborhood and close to (but not necessarily next to) valued amenities or planned ones — employment opportunities, good schools, shopping, public transportation, major highways, parks and recreation, cultural activities, etc. A good location is also about not being on a high-traffic street, near noise, next to run-down properties, in a flood plain, etc.
Something to consider when selling your home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your South Central Vermont home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains.
Calculating Capital Gains
(+) PURCHASE PRICE – Price paid for property
(+) COST OF PURCHASE – Transfer fees, attorney fees, inspections
(+) COST OF SALE – Repairs, commissions, attorney fees, inspections
(+) COST OF IMPROVEMENT – Room additions, deck, for example, though not replacing existing
(=) ADJUSTED COST BASIS OF YOUR HOME
(-) AMOUNT YOU SELL YOUR HOME
(=) CAPITAL GAIN
A Special Real Estate Exemption for Capital Gains
The most important piece of a person’s financial life is their credit score. Whether buying a new South Central Vermont home, applying for a job, refinancing, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Do not let these credit score myths get in your way when preparing for the purchase of your next South Central Vermont home.
Myth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.
Myth: Age, sex, and income are factors that affect your score.
None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.