Tuesday, August 25, 2015

More Home for a Lower Cost of Housing

What if you could live in a larger and possibly newer home for less than you are currently? Would you consider moving? Do you want to hear more?

Interest rates, while they’re expected to go up, actually took a small dip and are still hovering at the 4% or below mark for a 30 year mortgage and almost one percent less for a 15 year term. QUALITY COSTS3.png

Let’s assume that you have a $225,000 mortgage currently at 6% which has a principal and interest payment of $1,348.99. With a 4% rate, you could have a $282,561 mortgage with the same payment. A $57,000 more expensive home could help you get what you need most such as more square footage or a different location or a newer home.

If you’re going to be making that payment for years to come, why not allow lower interest rates to help you get the features you want without having to necessarily pay a higher payment. Taking that logic a little bit further, let’s see how utilities can make a difference too.

A newer home could easily have lower monthly utility costs than your current home due to being more energy efficient. Construction materials, windows, doors, insulation, modern HVAC systems and energy efficient appliances all contribute to lower utility costs. A new home with these advantages could easily save a homeowner up to 25-50% on utilities for the same size home.

The concept is simple: get the most home you can for the amount you spend on the payment and utilities. It will take some investigation and your real estate professional can help.


Tuesday, August 18, 2015

Get Ready for College

rental advantages.pngOne of the important things as a parent is to plan for their children’s education. Let’s look at two different approaches: a savings account or investing in rental real estate.

Assuming your child is five years old and you start putting $250 a month in a savings account earning 2%, in 13 years you’d have $44,497.41 to pay for their college. Anticipating that isn’t going to be enough, you’d have to save $500 a month to end up with $88,995.

Another way would be to make a lump sum contribution of $20,000 today in a mutual fund earning 5% that would be worth $37,713 in 13 years. You’d have to make a $47,196 initial contribution to end up with the same $88,995.

An alternative to savings would be to invest in a $100,000 home in a good area. Assuming a three percent appreciation and rent of $1,000 a month, an initial investment of $23,500 could have a future wealth position of $83,838 at the end of 13 years.

Obviously, this is just an example of why rental homes are the IDEAL investment providing Income, Depreciation, Equity build-up, Appreciation and Leverage. While rentals certainly have more risk and management than a savings account, they do provide an opportunity for a higher rate of return.

If you’re concerned about paying for college tuition in the future, it is certainly worth investigating the possibility of investing in rental homes today.


Sunday, August 16, 2015

5175 King Henry Cr, Gladwin MI - SOLD!


5175 King Henry Cr, Gladwin MI
3 BR, 1 Bath, Storage Area
Are you looking for an affordable, updated and very well maintained waterfront cottage in beautiful 
Sugar Springs? You may have just found it! Nice sandy swimming area.

SOLD!


Saturday, August 15, 2015

1382 S Clarwin Ave, Gladwin MI, 30-70 acres with Howland Creek


1382 S Clarwin Ave, Gladwin MI (30-70 acres with Holland Creek)
4 BR, 1.5 Bath, 2.5 Car Garage and 2 Pole Barns
Check out this charming, well maintained ranch style home on 70 acres. This lovely home was 
updated in 1998 with an lovely county kitchen and super sized dining area.
$184,630 (30 acres) to $274,630 (70 acres) 

PENDING!





Friday, August 14, 2015

10255 Woods Road, Gladwin MI - 4.79 Acres


10255 Woods Road, Gladwin MI
3 BR, 2 Bath, 2.5 Car Detached Garage
You will fall in love with this beautiful Saltbox style home nestled in the trees, on a private wooded 
setting. Surround yourself with nature. This home sits on almost 5 acres of rolling mature woodlands. 
$141,414




Wednesday, August 12, 2015

715 N Hockaday Rd, Gladwin MI - 7 Acres


715 N Hockaday Rd, Gladwin MI
2 BR, 2.5 Bath, 2.5 Car Garage and Detached Storage Barn
Well maintained brick ranch on 7 acres near town, but in a country setting. This home has a full 
unfinished basement and the home has been recently be repainted on the interior. Great family home.
$149,408




Tuesday, August 11, 2015

Wait a Year...It Won't Matter?

There is a frequently quoted expression “more money has been lost from indecision than was ever lost from making a bad decision.” Regardless of the extent of its accuracy, most people can recall when procrastination has cost them money. 2015-16-250.jpg

There are markets so short of inventory that buyers have become frustrated after losing bids for several homes and have decided to wait until more homes come on the market. In the meantime, the shortage of homes is driving the prices up more by the month.

There are buyers who can’t find what they want for the price they want to pay and think that waiting will somehow change things. In some cases, what they want just keeps moving farther and farther away from them.

The other dynamic in play is, of course, the mortgage rates. While they’ve remained low for several years, most experts agree that they’re going to rise; it’s just a matter of when. If you look at what positive increases in both of these would do, it becomes apparent that waiting will matter.

A $250,000 home purchased today on a FHA loan at 4% for 30 years will have a principal and interest payment of $1,151.76. If a buyer were to wait a year and the price increased 5% and the rate went up by 1%, the payment would increase by over $200 a month. In a seven year period, the increased payment alone would cost the buyer over $17,000.

Use the Cost of Waiting to Buy calculator to see how much it will matter based on the home you want to buy and what you think the prices and rates will do in the next year.

1056 Rivers Terrace, Gladwin MI - Smallwood Lake


1056 Rivers Terrace, Gladwin MI (Smallwood Lake)
3 BR, 1.5 Bath, 2 Car Garage
Well maintained waterfront Chalet. Home features large bedrooms, drywall interior, roomy kitchen. All of this sits in a pretty wooded setting overlooking the lake.
$149,608




Wednesday, August 05, 2015

110 Fawn Lane, Gladwin MI - Secord Lake


MLS# 162342            
110 Fawn Lane, Gladwin MI
2 BR, 1.5 Bath, 2.5 Car Garage and Attached Shed
Cute waterfront cottage with lots of nice updates, hardwood floors, updated kitchen counters tops, cupboards and flooring. Freshly painted and ready for you to view!
$147,927 

PENDING!    




324 S Silverleaf, Gladwin MI - City of Gladwin


MLS# 164250      
324 S Silverleaf, Gladwin MI
Great rental investment property in the city of Gladwin, near shopping and down town. Could be a nice starter home. Home needs some updating and paint, but has a lot of potential.
$32,727  

PENDING!


Tuesday, August 04, 2015

Who is Your Champion?

champion-200.jpgThe Super Bowl and World Series determine the football and baseball champions. Since there can only be one champion, the other team loses the competition. In feudal times, a knight might champion for the king or a patriotic, romantic or religious cause.

Fierce competition can occur when buying or selling a home because each party wants to get the “best deal” possible. When the buyer and seller are not equally matched, and they rarely are, it is important to have a champion on your side to fight for your cause.

The price of the home, the type of financing and concessions, personal property, closing dates and possession are just a few of the many things that can be negotiated in a contract. Since the seller wants to get the most for their house and the buyer wants to pay the least, their causes are diametrically opposed.

Even after the contract is signed, removing the contingencies can cause considerable negotiations. The inspections or the appraisal could be the source of reevaluating the terms and provisions of the contract.

Negotiating the sale or purchase of a home is definitely a competition and you need a champion on your side.