Should you skip the starter house?

Should you skip the starter house?

Gone are the days when a three-bedroom, two-bath starter home was the norm for first-time homebuyers. Today, many buyers are skipping that stage altogether and going straight for their dream homes. They’re buying bigger, more expensive properties with upgraded features, and they plan to live there for the long haul.

Not sure which type of property you should look for? Here are a few things to consider:

Why are you buying?
Are you mainly looking for a way to lower your monthly living expenses, or do you want a place to raise your kids and put down roots? Do you want this to be your only purchase, or are you willing to go through the process again in a few years?

What’s your budget?
Can you buy your dream home with what you can currently afford, or would that stretch your budget too far? It’s crucial to consider how much you’ll need to save for a down payment and how large of a loan you can qualify for. Your credit score and the expected interest rate will also play a factor.

How long do you plan to stay? 
Do you plan to be in the area for a long time or is there a chance you’ll need to move for your career, family or another reason down the line?

Is the market favorable?
What is the current housing inventory, and will you be competing with other buyers? Favorable market conditions mean you’ll get more house for your money, making it an ideal time to purchase a forever home.

Get in touch today if you’re ready to buy a new home. If you’re unsure about a starter home or forever home for your family, we can discuss what options are available to meet your needs and long-term goals.

Are you ready for some football????? IT’S GAME TIME!

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🏈🏈🏈 IT’S GAME TIME 🏈🏈🏈 Our yearly football contest has arrived! Have you entered to win your favorite NFL Jersey??? Watch video and see comments for details. #AFC #NFC #JoeArizona #GoCards

Posted by Joe Arizona Homes REMAX Professionals on Wednesday, August 15, 2018

Do you think you know who the Super Bowl teams are this year? Got a guess? Let’s hear it!

🥇 Email: info@joearizona.com with the AFC and NFC team you think will be in the Super Bowl.

🥇 If you are correct you will win a prize

🥇 One correct entry will be drawn to win the Grand Prize, an Official NFL Jersey of your choosing.

🥇 1 entry per email address.

🥇 Deadline 5pm, September 8th, 2018

 

 

Tiny Homes: What Are the Pros & Cons?

Tiny Homes: What Are the Pros & Cons?

The tiny house trend is a big movement. Everyone from millennials to retirees is opting to live small, but that doesn’t mean the lifestyle is right for you. Consider these pros and cons before you downsize.

What constitutes a tiny house?

Generally, tiny homes measure between 100 and 500 square feet. Many are portable, but some city ordinances and housing divisions require homes to be set on a foundation.

What are the pros?

People are drawn to tiny houses for a number of reasons. Owners of tiny homes often cite price as the deciding factor. Tiny homes range from $10,000 to $60,000, depending on the manufacturer. Even a top-of-the-line custom unit typically costs less than $100,000.

Other perks include the freedom of mobility and the ability to live more sustainably. There’s also the added flexibility to use the structure as a rental unit, add-on expansion or mother-in-law suite.

What are the cons?

Of course, not everyone is willing to contend with the realities of owning a tiny home. For instance, despite their low sales price, there are hidden costs that can sneak up on potential buyers. From construction crew markups and shipping fees to property taxes and plot purchases, the final figure can add up quickly.

What’s more, unless you have enough liquid funds to make a cash purchase, financing for tiny homes can be difficult, and there are also obvious drawbacks such as space restrictions that complicate hosting guests and storing nonessentials.

No doubt our collective desire for simplification and financial freedom has birthed the tiny home movement. However, before you commit to one, it’s important to educate yourself about the complicated regulations and overlooked nuances of owning a tiny home.

Joe Bourland

Joe Bourland | RE/MAX Professionals
Team Leader JoeArizona.com
joe@joearizona.com
10320 W. McDowell Road
Suite B2005
Avondale, AZ 85392
Phone: 623-322-8588

RE/MAX Professionals

 

Do you need umbrella insurance?

Do you need umbrella insurance?

We live in a litigious society, and for most families it would be financially devastating to experience a lawsuit. Want to protect your assets? An umbrella policy could provide the extra coverage you need.

What does an umbrella policy cover?
An umbrella policy provides additional liability protection. If someone sues you, this policy picks up where your homeowners or car insurance coverage leaves off. Coverage includes everything from legal fees to the settlement amounts associated with a lawsuit.

Umbrella insurance also covers litigation prompted by:

  • Rental property incidents
  • Malicious prosecutions or false arrests
  • Defamation of character
  • Damages for pain and suffering

Who needs extra coverage?
If you’re worried about keeping your existing net worth and future earnings secure, it might be worth looking into an umbrella policy. People with substantial assets often set up umbrella liability insurance to insulate themselves in the event of a lawsuit, but wealthy policyholders aren’t the only ones at risk. If you don’t have significant assets, the court can target your future earnings to pay off damages.

How much coverage do you need?
Umbrella policy premiums are relatively inexpensive compared to what it would cost to have your assets drained. But the more you have to safeguard, the larger the policy you may need.

To figure out how much coverage you need, first evaluate all savings, retirement accounts and physical property. Next, calculate what the potential loss of your future income would be. Finally, add these figures together to form an idea of your potential coverage amount.

No matter how much you have or don’t have, an umbrella policy can help you preserve your current and future wealth. Feel free to reach out if you have any questions.

4 Famous American Estates That Inspire

4 Famous American Estates That Inspire

It’s never too early to dream up your next vacation. Whether you’re interested in a fun, educational destination or you’re on the hunt for home inspiration, visiting these famous estates may pique your imagination.

Architectural Icon
A tour through the Frank Lloyd Wright home and studio just outside of Chicago is like peering into the creative mind of one of America’s most iconic architects. Constructed in 1889 for $5,000, this Oak Park house served as the family home for Wright, his wife and their six kids. Bold, geometric shapes on the exterior and the interior’s high, barrel-vaulted ceiling make this visit a must for architecture enthusiasts.

Literary Cats 
One home of Nobel Prize-winning author Ernest Hemingway is tucked away in the heart of Old Town in Key West, Florida. The estate boasts Spanish colonial architecture and lush grounds; however, the Hemingway home is also well-known for its current occupants. No less than 40 polydactyl (six-toed) cats, descendants of those owned by Hemingway himself, still live on-site.

Presidential Family Estate
Get a historical perspective with a visit to Hildene, a 1905 Georgian Revival mansion in Manchester, Vermont, that belonged to Robert Todd Lincoln, the son of Abraham and Mary Todd Lincoln. Guests can take year-round tours of the home’s 24-room interior, stroll down approximately 12 miles of walking trails and visit the working farm.

As Seen on TV
Popularized by more than 70 feature films and television shows, including “Full House,” San Francisco’s Painted Ladies are a staple of the city’s skyline. This row of quintessential Victorian homes, also known as the Seven Sisters, ascends one of the city’s hilly neighborhoods. Snap a gorgeous photo from the famous Alamo Square Park across the street.

Your Mortgage Questions Answered

Does the term “amortization” leave you perplexed? Are you unsure how preapproval differs from prequalification? If so, you’re not alone. Here are some mortgage basics to help you become more familiar with the process.

What’s the difference between prequalification and preapproval?
Getting prequalified is often the first step when searching for a home. You supply basic financial information, such as your income, assets and debts, and the lender then provides a preliminary estimate of the amount for which you may qualify.

Preapproval involves an in-depth look at your finances and usually requires an application fee, but this process brings you closer to determining your potential interest rate and monthly payment. Being preapproved also puts you in a better position in a competitive market because it shows you have your finances in order.

What is amortization?
Amortization is the process of paying off a home loan’s principal and interest over time within a consistent, planned repayment schedule. In the beginning, a large portion of each payment goes toward interest, but as the loan matures, larger amounts go toward paying down the principal.

What types of loans are there?
Fixed and adjustable rate mortgages operate as their respective names imply. The former has a rate that stays the same for the life of the loan. The latter’s rate may start low, but it can increase after a predetermined period or depending on market conditions.

Government-guaranteed mortgages include FHA and VA loans. These are usually easier to qualify for and typically require lower down payments than other types of loans.

Joe Bourland
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Joe Bourland | RE/MAX Professionals
joe@joearizona.com
10320 W. McDowell Road
Suite B2005
Avondale, AZ 85392
Phone: 623-322-8588

RE/MAX Professionals