Single females continue to be a driving force in the housing market. In fact, according to the National Association of REALTORS®, single women purchased one out of every five homes in 2006. So, if you are ready to take the plunge into homeownership, the Coldwell Banker® organization recommends taking the following steps:
First and foremost, check your credit history. Order a report from one of the three major agencies and take immediate steps to rectify any problems. Make sure you pay your bills on time and have established a savings plan. You want to be on firm financial footing when you begin the home buying process especially since you will be funding the purchase on one income.
Have a good idea of what you are, and are not, willing to do with a home. Determine ahead of time whether you want a house that is ready for living, or whether you want to break out the tools and begin the fixer-up process. If you want to take the do-it-yourself route, however, be sure to establish a separate budget for that process so that you can stay on top of both the mortgage and renovation budgets.
Buying a home is likely the largest transaction you will ever make, so when you are buying on your own be sure to surround yourself with a team of professionals who will help you navigate through the process. An established real estate sales associate can coordinate information from beginning to end and help identify the professionals you will need (inspectors, lawyers, contractors) to make the experience as smooth as possible. As a professional REALTOR®, I can be your resource. Most importantly, have fun!
Living with your parents until you get married is a concept as quaint as apple pies cooling on windowsills and white picket fences. With the average age of first marriages 26 for women and 27 for men, according to USA Today, more and more young adults are spreading their wings and enjoying life before choosing to settle down. And the savvier among the group have eschewed the pitfalls of monthly rent and taken advantage of the recent real estate bull market to purchase their own homes. As a result, it is not uncommon to see new marriages in which both the bride and the groom enter the union with a dowry that includes real estate!
So, what to do with the extra house? Perhaps the first temptation is to jettison one and use the proceeds to fix up the other house and set up a nest egg. A good idea, and one that will set you up with a nice down payment when it is time to purchase a larger house for a growing family.
But that is not the only option for newlyweds with two homes. According to the professionals at Coldwell Banker Real Estate Corporation, another good idea is to keep one house as a rental unit. The tax codes allow you to immediately depreciate the value of the building over 27 years, and any taxes, insurance, visits to your property and fix-ups are all write-offs. With this approach, both homes are investments and you build equity in each.
They also suggest selling one of the homes and buying a condominium to turn into a rental unit. According to the National Association of REALTORS in the past 8 to 9 years condominium appreciation has beat that of single family houses.
No matter which option you choose, consult with a knowledgeable real estate sales associate before making any big decisions on what to do with the second house. A good realtor will know the market and be able to counsel you on the type of cash flow you can expect with a rental in the neighborhood, or whether a straight up sale is a better way to go. And if you choose to rent, make sure to get the advice of a good accountant to help you navigate the various tax advantages to being a landlord.
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