Six Reasons to Consider Rental Homes

Single-family homes offer an investor the ability to borrow large loan-to-value amounts at fixed interest rates for long terms on appreciating assets, tax advantages and reasonable control. Some of these characteristics are not available through other investments.rental advantages-2-250.png

75-80% loan-to-value mortgages are available on most residential properties up to four units. Comparatively, the stock market allows you to borrow up to 50% on a stock but if the price goes down, they will require additional cash to keep the ratio at or below 50%. If it isn’t available, your stock can be sold to satisfy the loan.

Real estate investors call getting a long-term mortgage putting an investment to bed. The fixed-rate and the 20-30 year terms are exceptions to loans for most other investments, if they’re available at all. 

Real estate tends to go up in value over time. There can be a lot of variables that affect the price like supply and demand, condition and available mortgage money, in addition to the general economy.

Rental real estate has several different tax advantages. The profits are taxed at lower, long-term capital gains rates for investors who have owned the property for more than 12 months. While the property is being rented, investors are given a non-cash deduction based on cost recovery of the improvements. Tax deferred exchanges can also be available if specific conditions are met which allow an investor to postpone paying the tax on the gain.

It isn’t necessary to have a partner with most rental homes if the investor can qualify for the mortgage. This allows investor control to make all the decisions that an owner is entitled such as setting the rent, making improvements and determining when to sell.

Rental real estate can earn a much higher rate of return than other available investments while providing income during the holding period. It certainly is worth investigating the possibility with a real estate professional who understands and works with rental properties.

What Would You Give?

Yogi Berra said he’d give his right arm to be ambidextrous. While most first-time home buyers are not going to that extreme, it is interesting to see what sacrifices are being made according to the National Association of REALTORS® 2016 Profile of Home Buyers and Sellers.42271463-250.jpg

  • 43% – cut spending on luxury or non-essential items
  • 34% – cut spending on entertainment
  • 27% – cut spending on clothes
  • 14% – canceled vacation plans
    9% – earned extra income through a second job
  • 7% – sold or decided not to purchase a vehicle
  • 44% – did not need to make any sacrifices

Forty-percent of first-time buyers experienced some difficulty during the mortgage application and approval process. Single, male buyers expressed a higher incidence of difficulty than single females and married or unmarried couples.

Pre-approval from a qualified mortgage lender before the home search process begins is still considered the best advice for all buyers who will purchase with a mortgage. Your real estate professional can make recommendations for a loan officer that could help you avoid unnecessary aggravations.

InTouch Weekly Consumer Article

Sincerely, Jessica Christopher “Like” Me on Facebook! Realtor /Certified Residential Appraiser CRS (Certified Residential Specialist) ePro (up-to-date real estate technology) MRP (Military Relocation Professional) 41463 Margarita Rd. Suite 100 Temecula, CA 95291 Cell 951-515-1954 [Jessica C signature]
No values shall be considered appraised value unless specifically asked in writing to do so.
From: InTouch@BetterHomeowners.com [mailto:InTouch@BetterHomeowners.com] On Behalf Of InTouch@PatZaby.com Sent: Monday, January 23, 2017 5:54 AM To: Jessica Christopher Subject: InTouch Weekly Consumer Article
Jessica ,
Your weekly consumer article is now available. This is a courtesy email to allow you to preview what will be posted on your behalf automatically if your InTouch account is set for automated mailings and postings.
Your article may be posted on your blog, Facebook, or mail merged to your own contact list. If you have already configured InTouch to post automatically on your behalf, no further action is required.
The article is provided in this email below, as well as an attached HTML file. You may also edit and download the article directly from your member website.
Tip: The best method for manually posting your article is through copy (ctrl + c) and paste (ctrl + v).
Automatic Posting Automated posting is available for members who use WordPress, Blogger (formerly BlogSpot), and Typepad.
1. First you must set your blog options to allow posting via email. WordPress – Post by Email Blogger – How do I post via email TypePad – Posting via Email 2. Configure your InTouch options, open the options. 3. Add or edit an existing Blog Task, and set the Post via email address and set the schedule for delivery. Then click the Save button, your new posting settings will be used at the next time article posting.
Customer Service Support@PatZaby.com<mailto:Support@PatZaby.com> (972) 743-9887
________________________________

Boomers Are Staying In-Place
There seems to have been an accepted progression for homeowners going from starter home, to gradually moving into one’s dream home, then, downsizing after becoming an empty nester and finally, into a retirement home. However, Marianne Cusato’s 2016 Aging-in-Place Report indicates that many older Americans don’t plan on following that pattern. [46668033-250.jpg]
61% of homeowners above the age of 55 intend on staying in their homes indefinitely. 2/3 of them believe that the home’s layout will serve their needs without having to make aging-related improvements.
Some of the reasons being cited for staying in place are:
* 66% say their home is conveniently located * 38% say they live close to their family * 68% say they feel independent in their home * 54% say they are familiar with their neighborhood * 66% say the feel safe in their home
Typical renovations that might be considered for their current home are things like grab bars in the tub or shower, shower seats, taller toilets, handheld showerheads and additional handrails on stairways.
It seems that the report’s conclusion is that regardless of a homeowner’s age, they want to thrive in their home. The same emotional reasons that causes a person to want to buy a home are the things that cause them to hold onto them if is practical. default iconfd73c560-d734-4109-b104-5c494b1e2c0e.html