Archive for April, 2011
Clients consider whether to downsize their homes for a variety of reasons. Below, I outline many of the factors that make downsizing a good choice for many. Most of the reasons are financial in nature but certainly not all.
DISPOSABLE INCOME INCREASES: If you can reduce your monthly housing fixed expenses by moving into a smaller house or condo, likely you will more cash at the end of the month to spend on other items
NO MORTGAGE: By moving into a smaller or lower priced home, you may be able to pay with cash or at a minimum have a smaller mortgage obligation.
REDUCED PROPERTY TAXES & INSURANCE: Smaller usually means a less expensive tax appraisal leading to a lower tax bill and since there is less to insure a savings there as well.
DECREASED UTILITY BILLS: A smaller home is great protection against higher utility costs. For example, you will no longer have to pay to heat and cool extra rooms. Of course, you will also want to consider having an energy audit to test the efficiency of your new house or condo as size is not the only factor when looking at utility bills.
LIFESTYLE: Fewer rooms mean less cleaning. A smaller (or no) yard means less yard work. Thus, you may be left with more time to do the things that you would rather do. Sounds like a great way to take a bite out of stress and hit the walking trail or the movies!
To learn more about downsizing or anything related to real estate in the Austin, Texas area, contact licensed Texas attorney, REALTOR and CPA Jeffrey S. Plotkin, VP of Habitat Hunters, Inc., Jeffrey may be reached at 512-517-4327, via e-mail at Plotkin@habitathunters.com or by mail at 503 W 30th St., Austin, TX 78705, www.habitathunters.com.
April 14th, 2011
Have you just relocated to Austin or are you currently renting in the area? You should ask yourself, is buying a residence the right thing for me to do? You might want to think about some of the following:
Having a mortgage can build equity. In most mortgage arrangements, each month you will make a payment. Some of that payment will be applied to reduce your principal balance. The hope is that when you go to sell your home at a later time, the balance will be reduced and you will get to walk away from the closing table with proceeds.
Potential Appreciation. Appreciation and potential equity addressed above go hand in hand. The economy has experienced up and down cycles and may continue to. However, many believe that overtime most real estate does appreciate. When you rent you have no chance of appreciation at all, and you are actually helping to make someone else’s monthly payment.
Tax Benefits. Under current US federal tax law, homeowners are given very favorable treatment. Simply stated, in most all cases, your home mortgage interest is deductible if you itemize on your tax return. Since mortgage interest, especially on a newly acquired home, makes up the largest percent of your monthly payment, this leads to a great tax shelter and break. If the interest deduction is not enough, the real estate property taxes you pay on your principal residence are deductible on your federal tax return as well.
Pride of Ownership. Imagine pulling into your driveway and looking at your most prized asset! It also means that you don’t have to worry about painting walls or making improvements to someone else’s property. Most feel that owning gives you the feeling of making an investment in your future, and helps to provide stability for you.
To discuss any of the topics above, feel free to contact Jeff Plotkin, a Texas REALTOR, attorney and CPA. Jeff Plotkin, is VP of Habitat Hunters REALTORS of Austin. Jeff may be reached at plotkin@habitathunters.com or 512-517-4327. Please visit www.habitathunters.com to learn more.
April 12th, 2011
Austin, Texas is the capital of Texas and a great growing cultural center. However, the Austin, Texas area is also home to many higher education centers such as the University of Texas, Texas State, St. Edwards, Concordia and Austin Community College, among others. For the reasons below, the college population makes Austin a great place to consider investing in.
1.) Rentals Already Leased -Rentals already leased? Many rental properties that one purchases in a college community are already populated with tenants. This means that the initial cost of getting the property rented or having it set vacant (for a month or two) is NOTHING! The only catch for the new property owner is to make sure that the tenant is a good one; that’s easy enough as we can ask for copies of lease applications, credit checks, any letters of guaranty and other documentation used for the initial approval.
2.) Money to Spare – University towns are full of money; government and parent money. Many students have plenty of loan money and seemingly almost always pay rent on time. As an added bonus, one can locate their rentals near some of the private universities in the Austin area, thus tapping into the government’s money as well as wealthy parents that prefer to send their students to the best educational institutes. Moreover, since students cannot typically qualify for many rentals on their own, you get the added benefit of having parents or family member serves as lease guarantors.
3.) Easy to find Tenants – Most often, there are plenty of tenants to fill your vacancies. Of course, many colleges house students on campus, they never come close to housing all of them in the Austin area. Moreover, most upperclassmen don’t want to be in the dorms. Thus, juniors, seniors, and graduate students often represent much of the tenant base and they tend to be more responsible.
For help in finding the perfect rental investment in the Austin, TX area, call Jeffrey Plotkin, REALTOR, attorney and CPA at 512-517-4327 or by e-mail at Plotkin@habitathunters.com. Jeffrey Plotkin is VP of Habitat Hunters, Inc., located just blocks from the University of Texas-Austin at 503 W. 30th and found online at www.habitathunters.com.
April 7th, 2011
Have you just relocated to Austin or are you currently renting in the area? You should ask yourself “Is buying a residence the right thing for me to do?”. Is the buying process going to be too stressful for me to handle?
Home buying can be a very trying and emotional experience. There are pitfalls from the beginning of the process until the very end. The most important thing you can do to better handle the process is to hire a professional REALTOR®.
A professional REALTOR® can help you:
Find the right property. Because agents have access to their area multiple listing systems they take the burden away from you having to sort through magazines, newspapers and websites. Your agent can simply send you appropriate listings for you to review. Most will have detailed pictures and some even have virtual tours. A REALTOR’S® data is also in real-time, whereas most other sources are outdated.
Negotiate. Find an agent that has the ability to explain the proper offer and related forms to you and then attempt to negotiate favorable terms for you. Interview your agents before hiring one and ask them about their education, training and experience.
Guide you through each of the many steps. The home buying process has several steps and it may seem overwhelming. You have to find the home, have it inspected, appraised and surveyed. What about potential repairs and dealing with seller’s who have their own representation? An experienced professional will make you feel at ease at most every stage. Even I, with 20 years experience, have to tackle new situations on a regular basis.
To discuss any of the topics above, feel free to contact Jeff Plotkin, a Texas REALTOR, attorney and CPA. Jeff Plotkin, is VP of Habitat Hunters REALTORS of Austin. Jeff may be reached at plotkin@habitathunters.com or 512-517-4327. Please visit www.habitathunters.com to learn more.
April 5th, 2011
