Pros and Cons of an HOA
There’s a lot to consider when purchasing a home. One very important factor is the neighborhood. Many of us base this off proximity to a good school district, work, the grocery store, etc. You’re likely to come across at least a few properties that are part of a homeowners association, or HOA. These aren’t rare. In fact, over 26 million homes across the country are governed by them (CAI). Of course, amenities like swimming pools, a groomed neighborhood or clubhouses can make it tempting to overlook the realities of living under an HOA – but it’s important that you don’t. When you create your budget for a house, you likely aren’t considering monthly fees for an HOA, rather just your mortgage and utilities. It’s important to understand that an HOA can cost $$$. HOAs assess fees that help maintain common areas and cover community services, so knowing the size of the fee (and what it covers) can help you decide if you want to live in the community, or whether you can afford to. It’s also important to understand the HOA rules, which you have to abide by if you purchase a home there. Association regulations are designed to protect property values. It can cover how you paint your home to where you park your car. But they can touch on anything from how you paint your home to where you park your car. Some HOAs have rules about pets, flags, outside antennas, clotheslines, satellite dishes, fences, patios and home businesses. There are also other aspects of an HOA to consider. Here are some pros and cons of community living to help you decide if it’s right for you: PRO: HOAs provide amenities Buying into an HOA may give you access to amenities like a tennis court or fitness center that you might not otherwise be able to afford, or be able to enjoy in such close proximity to your home. But, not all HOAs will have these nice of amenities. Some may just cover the fees of gardeners pruning your neighborhood. However, this will result in a much more affordable HOA fee. PRO: They reduce your responsibilities The fees you pay to an HOA typically go toward services (like snow removal) and maintenance that you might otherwise have to perform or contract for yourself. PRO: They help keep up appearances HOAs typically have rules to prevent property neglect and resulting neighborhood decline. They can help to maintain the property values for the homes within the community. It also reduces having to look at someone’s unmanicured yard and dilapidated home. CON: An HOA can foreclose on your home If you get behind on your fees, the HOA may be able to foreclose on your home. CON: They can spring assessments on you If the HOA doesn’t have cash reserves to cover an expenditure, it can impose an assessment to come up with the money. That’s important since 70 percent of all HOAs are currently underfunded. CON: They may limit you from renting your place HOAs can put an array of rental restrictions in place. Some associations limit rentals to 15 percent of homes in the community, require HOA board approval of tenants, and say rentals must be on two-year leases. So, consider the pros and cons against your own lifestyle and get familiar with the community rules before you buy – you just might find that association living is equally as satisfying for you.
Now Is the Time to Invest in Real Estate
Investing in anything can be daunting. Are you making the right decision? Will you benefit from this? Will something plummet when you least expect it? While we can’t say much for many investments, we can say a lot for real estate. One thing is for sure and that is 2019 was the year for investing in real estate, and 2020 will be even better! Real estate is not only a good investment but actually one of the best things to invest in. Here are 5 reasons why you should be investing in real estate this year. Prices are Up The vast majority of real estate experts expect the values of homes for sale in the US housing market to continue increasing, albeit at a lower rate. The most valuable properties can be found on the coastline – California, New York, and Hawaii – but, don’t overlook your small home towns, college towns, and anywhere in between. While homes are more expensive now, if you can afford a down payment, you can rent out the property at a rate that will surpass the mortgage, putting money in your pocket. Rentals are Popular Many millennials are opting to rent instead of purchasing a house. In fact, more people, in general, are choosing to rent rather than buy. With this in mind, now is the time to invest in property if you are choosing to rent it out. While day to day housing rentals are very popular, so are vacation rentals. People are choosing to book their stays through rental lodging sites like Airbnb because they can get more bang for their buck. There are so many choices when it comes to renting out your property. Whether you are purchasing a property and renting the whole thing out or renting out a portion of your home that you don’t use, you are sure to make a substantial amount of passive income. So Many Ways to Finance Nowadays, there seem to be so many ways to finance a purchase of real estate. Sure, traditional mortgages are still available, and as long as you keep a high credit score, you can get a good loan rate. But there are also other options available. Feasible options include fix and flip projects. Essentially, you find a property that is more or less attractive at a much cheaper price. You then use hard money loans to get short-term financing. Once you’ve improved the real estate, raising the value of the property, you can sell it a higher price. You can also consider a few other loans such as an FHA loan, USDA loan, or the VA loan. Each loan has rules and regulations. For the FHA loan, this is for low-income to medium-income borrowers. You are able to secure a loan with a down payment as low as 3.5%. The other two loan options are government-secured. USDA is for when you’re buying a property in a rural area and the VA loan is for military veterans. The VA loan gives you the option to put $0 down. Just keep in mind that your monthly mortgage payment will be higher since you have to make the money up in the length of your loan (15 or 30 years). Retire in Comfort Referencing back to our rental properties, if you choose to invest in a rental property, you will benefit greatly from this when you choose to retire. After years of renting out your property, you’ve either been able to pay it off, or you have a lot fewer payments left. With that being said, you’ve already secured a great home to retire in long before you take your last paycheck. If you’ve invested in several rental properties, you now have passive income to supplement your retirement funds. The Internet Makes it Easy Before you even have to call up your local real estate agent, you’re able to go online and compare properties, neighborhoods, comps, etc. Having all of this information will be helpful for you in the long run, as you know and understand what you need and want before you meet with your agent. Real estate properties continue to head the list of the top investment strategies as they allow investors to make money in both the short term and the long run while keeping their full-time job. As a new-comer, just remember to start small – with a single-family home or a duplex – and consider hiring a rental property manager to avoid stress and to enjoy your rental income.
Moving Tips For Your Next Move
Congratulations! You bought the home of your dreams. Unfortunately, it’s time for the dreaded and unavoidable event… moving. However, almost everyone does end up moving at some point, there are plenty of tried-and-true moving tips out there to make the whole process easier. Following a moving checklist can help you make sure everything’s in order before, during, and after the move; another good moving tip is to commit to having a good attitude about all the changes to come. Some moving tips focus on packing advice, while others offer reminders to cancel various services or arrange for things to be prepared at the new house; still more focus on smaller details, such as how to care for pets during a move or what to do when the movers are late. Let’s get into our moving tips, tricks, and advice: Get rid of everything We all have a bunch of junk that we don’t necessarily need to follow us with each move. We recommend cutting back on excess and clutter as much as possible. Before you pack a single box, do a merciless purge of unused or unnecessary items. You’ll have less to pack, less to move, and less to unpack—and you’ll start life in your new space with a clean slate. Make a moving folder Start collecting new addresses, rental or purchase papers, moving contracts, and more in one folder. (Consider a hard copy, rather than a digital one, in case your computer or your phone batteries die during the move.) If any questions come up during the planning process or the move itself, you’ll have the answer (and records of agreements, payments, and more) on hand. Plus, having them on hand can Pack as far in advance as possible Most of us have a general idea of when we need to be packed up and ready to go. To alleviate any unnecessary stress, we recommend that you start by packing off-season items and the items you won’t miss. When it’s time to pack everything up, many items will already be ready to go. In the stressful final weeks and days just before the move, you won’t be worried about not getting everything packed in time. Book early If you’re hiring moving services, renting supplies, or having services such as painters or cleaners work on the house, book early. Waiting to do so could mean paying a higher price or not being able to get a truck or movers at all, particularly if it’s peak moving season (April through September is typically peak moving time). Schedule utilities for you new place We know you’re probably very excited to get to your new home. In the excitement of it all, make sure you remember to get your utilities up and running before arriving. You don’t want to arrive there, tired from the move, to find that the electricity, water, or heat is off. Schedule it ahead of time, and keep records of your requests in your moving folder. At the same time, request service stops for your move-out date at your current home. Keep the essentials with you We may use to having everything at the tip of our hands when we’re home, but we realistically can live without it all. Keep this in mind when packing. On the night before the move, tuck everyday essentials—a change of clothes, a toothbrush, must-have stuffed animals or toys for the kids, medications, paperwork, etc.—into a suitcase or bag you’ll keep with you in the car, the truck cab, or on the plane. If catastrophe strikes and the moving truck gets lost, at least you’ll have some essentials with you. Use the right size boxes Put heavy items, like books, in small boxes; light items, like linens and pillows, in bigger ones. (Large boxes packed with heavy items are a common complaint of professional movers. They not only make the job harder but also have a better chance of breaking.) Don’t leave empty spaces in the boxes Fill in gaps with clothing, towels, or packing paper. Movers often won’t move boxes that feel loosely packed or unbalanced. Avoid mixing items from different rooms in the same box It will make your packing quicker and your unpacking a lot easier, too. Label each box with the room it’s destined for and a description of its contents This will help you and your movers know where every box belongs in your new place. Numbering each box and keeping an inventory list in a small notebook is a good way to keep track of what you’ve packed―and to make sure you still have everything when you unpack. A lot can go wrong during a move. (A lot can go right, too). With all the details and moving parts, there’s no one-size-fits-all guide with moving tips for every single scenario that could come up during the moving process. Different people will have specific needs or concerns—an antique china collection, valuable wood furniture, delicate heirlooms—that may require special accommodations, but for most cases, this general list of moving tips and tricks will help.
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