How to Get Maximum Benefit From an Offset Home Loan Account

You’ve most likely heard the term Offset Home Loan Account, you may even have one yourself, happy in the knowledge that you’re doing something to pay your mortgage off sooner.

It’s actually one of the most powerful tools you have, allowing you to save thousands – even hundreds of thousands – of dollars over the life of your mortgage.

But – are you REALLY taking advantage of that Offset Account?

What is an offset home loan account?

An offset account is a transaction account that is linked to your home loan. The credit balance of your transaction account is ‘offset’ daily against the outstanding balance of your loan, thus reducing the interest payable on that loan. Over time, this can really add up to large savings and reduce the time it takes to pay off your loan.

If you put as much money as you can into your transactional account that’s linked to your mortgage, you can save interest each day that your money is there. Your mortgage is calculated on the full amount of your remaining debt MINUS any offset funds you have accumulated. In other words, your mortgage will no longer be calculated on your full debt.

Here’s an example: say you have a home loan balance of $200,000 and have $10,000 in your offset account. So, you’ll only pay interest on $190,000 of your home loan.

In short, an offset account offers you more flexibility. You’ll be paying off your mortgage quicker, but still have access to your funds if you need them.

What to look for

There are both full (100%) and partial offset accounts. With 100% offset accounts, interest rates are earned and paid at the same time, while a partial offset account is where the interest earned is only a portion of the rate paid on the home loan.

What you can do

There are a few steps you can take to make sure you get the most out of your account. Have your wages deposited in your transaction account, so the money you earn is immediately helping to reduce the interest you pay on your home loan.

Even though you will most likely spend some of that money over the month it’s still of use. Another example – let’s say that you get paid on the 15th of every month but your mortgage repayment comes on the 28th. Even though there’s only 13 days between them, you’ll be saving the difference in interest on the amount in your account for that period of time, which can eventually add up to thousands.

Any savings or lump sum payments you receive should go directly into this account. Again, you’ll still have access to the money if you need it, but the longer it stays in the account, the more interest is paid off.

Is an offset account for you?

An offset account is useful if you, like many people, can’t pay lump-sum repayments into your loan. You may be saving up for something specific – like renovations, holiday or school funding. You can use that money wisely before you cash it out for the reason you’re saving it.

However, it’s wise to make sure there’s still some money left in the account, as fees can rise once your account sinks past a certain amount. An offset account will really only work if you have a decent amount of savings. If you only have a few thousand dollars on a regular basis, your savings won’t be significant.

Tips For Buying Investment Property

Buying an investment property single-handedly could be a complicated and overwhelming process, especially if it is overseas. Some of the hurdles you might face through the process include,

  1. Choosing a favorable neighborhood
  2. Selecting the right property with all the desirable amenities nearby
  3. Allocating enough time to contribute to all aspects of buying
  4. Analyzing the prospects of the house
  5. Fixing the right budget
  6. Succeeding to fix a desirable price
  7. Understanding and performing paperwork

These are some of the issues you have to face if you plan to buy it on your own. Without a realtor you might end up paying a fortune for a house that is nowhere near to deserve a price like what you actually spend. So the number one tip would be to get the job done from reliable realtors who have the experience and expertise in handling investment property of all sorts.

Here is a quick guide to help you get through the process of buying a worthy investment property anywhere in the world.

Finding the right property

When you decide to buy a house, condo, townhouse or a vacation house for an investment property, give more importance to the neighborhood quality than the size of the home. Another aspect that you probably should vote for is for a house that favors a shorter commute to the city’s main locations.

Determining affordability

Don’t go overboard as you come across various properties. Be clear with your priorities among which your budget should be your primary concern. Hire a realtor who has vast knowledge of his sector and is efficient in the process of not only finding your dream property but also closing the deal for an affordable price. A realtor with such credentials will be able to determine your affordability Vs the cost of the property.

Determining comparable properties for sale

Instead of blindly playing by the rules, follow your instincts by comparing the cost of the property that you select with all the other similar types of properties in that locality. Your realtor would able to assess if the property that you have selected is worth the quoted price.

Accurate documentation

If you are a first time buyer, especially if you plan to purchase an overseas property, you have to be clear with the analyzing and performing of all the paperwork and documentation. If you find it beyond your realm, a realtor on the other hand would be well-versed in what is to be done and also makes sure if it is done correctly.

Property Investment in Central Bangkok

Property investment in any capital city becomes highly lucrative, especially when the property location is in the heart of the city. Bangkok, the capital city of Thailand, is not an exception to this. Buying a property located at the city center of Bangkok is very good. It can ensure you a very good return at the time of selling the property. Choosing any property along the route from Siam Square to the Asoke junction is always worthwhile. This is probably the most costly and important area in Bangkok. This area is well-connected with various important parts of the city.

If you target a property to buy for living here permanently, you will get ample scope to enjoy almost all facilities and modern amenities which the city has to offer you. You can go for buying a property in this location when you have a higher budget. If you are seeking a property in Bangkok with a lower budget, you can target the city’s southern, northern and western districts.

This article will include only the property options in central Bangkok. I will write on the property options in southern, northern and western districts of Bangkok in my next few articles. Therefore, keep following the next articles to get an idea about the Bangkok real estate market.

Property Options in Central Bangkok

It is an undeniable fact that the property for living in Central Bangkok is comparatively low. The reason is a vast majority of the complexes are dedicated to commercial uses. Consequently, there is a shortage of residential properties. Therefore, if you look for a residential property to invest in this area, you need to search for a longer period of time. You will find no new Bangkok townhouses or vacant land allotted for town-house investment from the BTS stations to Siam Square till Ekamai (middle Sukhumvit. From BTS stations to Ekamai all way up, there are numerous commercial properties for doing business. Therefore, finding a module for opening a business is easier than having a residential flat in this area.

If you are looking for a flat in Central Bangkok, you can move to Chit Lom or Chidlom. This area is just one stop ahead of Siam square in the east. Although the proximity of central Bangkok has made the area costly, it is much lower than any location from Siam Square to the Asoke junction. Chidlom is basically a high-rise condominium. This skyscraper consists of two towers- Tower A and Tower B. it is a 24 story building having more than 597 units for comfortable living.

It includes almost all modern amenities within it like:

• Swimming pool
• Fitness center
• Green place
• Water body
• Arabic room
• Function room
• Game room
• City View
• Gym room
• Steam room
• Garden
• Covered parking
• Children’s room
• Playground
• Clubhouse
• Function room
• CCTV surveillance 24*7
• 24-Hour security
• Keycard entry

Try to invest here for the proper utilization of your money.

14 Reasons You Must Consider Owning Rental Properties

I was a 24-year old MBA grad know-it-all. I had life perfectly figured out and I certainly knew everything about investments. Working in the finance industry for a large multi-national firm, I often worked with high networth business owners. Much to my surprise, these multi-millionaires almost always invested in real estate and were generally seeking out new ways to capitalize on real estate opportunities. I was perplexed, didn’t these highly successful business men and women know that the paltry returns of real estate were minuscule compared to the stock market? I mean, I could show them many “Wall-Street” reports that concluded real estate was a really poor investment compared to stocks and mutual funds.

It was almost a full decade later that I would begin to seek to understand real estate investing in earnest. Thankfully, by this point life had taught me the importance of humility and, that much to my surprise, maybe I didn’t know everything. I began to quickly see that with real estate, the “cards are stacked in your favor.” You enjoy the tremendous benefits and advantages that the wealthy have throughout time. The economic structural systems and tax laws are designed for your benefit! I was excited and started learning as quickly as I could.

Rental properties have historically been the #1 wealth building strategy in real estate. You borrow money to buy your asset and then have someone else pay for the costs of your asset as you enjoy the benefits of appreciation, equity build-up, tax advantages, and cash flow. What a system!

Here are the 14 reasons you must consider owning rental properties.

1) Leverage (OPM)

The most powerful tool in real estate! You can typically borrow between 70% – 80% of the cost of the property and yet still receive 100% of the benefit of appreciation. OPM stands for Other People’s Money and is what helps fund your deals.

2) Someone Else Pays the Expenses

A good rental property is one where the rents paid by the tenant more than cover all of the expenses associated with the property and yet you still receive all of the benefits, including appreciation.

3) Appreciation

Typically home prices increase in value over time. According to the Texas A&M Real Estate Center, the median list price for a home in the Austin/Round Rock, TX MSA in 1990 was $72,252. In 2015 it was $260,000!

4) Loan Paydown / Equity Buildup

Even if you do not have much equity when you initially purchase the property, without contributing any additional capital you can build up significant equity. You get the duel benefit of using the rents collected to paydown on your mortgage while simultaneously enjoying appreciation. The house is now worth more in value than when you bought it and your loan balance is now lower than the original amount you borrowed. Over time, these two factors are significant!

5) Tax Benefits / Deductions

Most expenses associated with the cost of ownership can be directly deducted from any income you receive on the property. The tax benefits of owning real estate are extensive and are definitely worth exploring.

6) Depreciation

So even though as we discussed earlier home prices historically rise over time, for tax purposes you get to “depreciate” a certain percentage of the value of the rental property each year. Depreciation, which is an expense for tax purposes, serves as a powerful income shield.

7) Inflation

Inflation normally has a very negative connotation for most people. As a real estate investor, you put the power of inflation on your side. As the cost of living increases, you concurrently increase rent. The loan payment is fixed and you are now paying back the loan with “cheaper” dollars. Inflation is a great ally for debt financed properties!

8) Yield (Passive Income)

One of the key problems facing retirees is where to achieve decent yield on their investments. Real estate offers incredible passive income once the note is paid off.

9) Positive Cash Flow in Interim

Until the note is paid off, a good rental still returns several hundred dollars a month in positive cash flow.

10) Hard asset / Less volatile

With real estate you have the security of a hard asset that you can drive by and inspect at any time of your choosing. Additionally, although property values can go up and down, real estate is typically less volatile than other asset classes.

11) Own Property Free and Clear at End of Note

If you have a positive cash flow rental, other than the initial down payment, the rents collected from tenants have paid for all of the costs associated with the property. Once the loan is paid off, you now have an incredible cash flow producing asset with no debt attached to it.

12) Easy to Refinance

As property values increase over time, rental properties are relatively easy to refinance. This allows you to pull out equity and move it into other great property opportunities as they come along. Your initial down payment on the first property could serve as the equity that springboards you into many others.

13) Timing

With rental properties you decide when you sell. This is critically important for any tax minimization strategy. Additionally, by controlling the timing of a sale, you may also be eligible to capitalize on tremendously positive tax deferment programs like a 1031 Exchange.

14) Financial Freedom

This is the ultimate goal and what makes all of the hard work worth it! With long-term ownership of rental properties, you are able to create enough passive income that all of your living expenses are covered. You have no financial need to work at a job and have the freedom to pursue work (or any activity) for fulfillment.

As you can see from the list above, the economic structural systems and tax laws truly do benefit real estate investors! Is there any wonder why all of the successful, high networth business owners I came in to contact with utilized real estate as a wealth building tool? Real estate truly is an amazing tool you can use to transform your life!

5 Reasons Why Buying Property in Koh Samui, Thailand Might Be Easier Than You Thought

We’ve all fantasised about it before; living on a tropical Island. Perhaps it was when you were sat on the bus on your way to work, squashed between a tired nurse and an arrogant teenager; picturing your very own slice of paradise in your minds’ eye. Then as the bus comes to a sudden stop, you’re snapped back into reality and sink further into your bad mood because you convince yourself that it is something that will simply never happen.

And why shouldn’t it happen for you? Why should you not be allowed to live on a luscious tropical island? As it turns out, there are ways in which you can make this happen, if that’s your wish. The question is though, where?

Well, how does the heart of South-East Asia sound? More specifically, Koh Samui, in Thailand. Of course, you’ll have to work incredibly hard for it, save as much money as you can and focus on a career that can be continued in Asia (or a retirement plan); though that’s not to say its impossible.

In this article I am going to list a few reasons why moving to and buying property on Koh Samui is well within the realms of possibility. If moving to an Island is what you’ve always dreamed of, then why not? After-all, we are the architects of our own reality, right?

1 – Because You Can

It really is as simple as that: because you can. Yes, there are complications and a number of laws in place that make it quite difficult, though it’s not impossible. The problem is that there are always horror stories and rumours that float around, shattering everyone’s dreams. Yes, you can buy property in Thailand – no, it’s not impossible.

The only thing is that you have to do your research and know your rights. That being said; there are plenty of experienced legal aids in Thailand who will be able to guide you through every step of the process, including a wealth of Real Estate Agencies who will put your needs and desires first so as to ensure the smoothest transaction.

It is worth putting in the extra effort, believe me. Read on and we will explore some of the things that make Koh Samui so special!

Thailand is one of the most popular tourist destinations in the World, and expatriates from all over the World have long been flocking to its shores to start a new life. In the same breath; Koh Samui is one of the larger islands and has grown in popularity over recent years, thus contributing towards it booming economy and real estate industry – do you want to be a part of that? Because you can.

2 – Because Koh Samui is Magnificent

Koh Samui isn’t one of Thailand’s most popular tourist destinations by accident. It has gained such a reputation because of its unparalleled beauty. Koh Samui is truly one of the most beautiful locations in the entire World, rich with a cultural tapestry that will rend you awe-struck and inspired.

The local Thai community are wonderful and accommodating too, welcoming all who flock to their shores with bright smiles and open arms.

From the hustle of Chaweng Beach, to the tranquility of the Lamai side of the Island; Koh Samui has something to offer everyone. The island boasts a wealth of magnificent landmarks and activities, including the Ang Thong National Marine Park, Bophut’s Fisherman Village, the Secret Buddha Garden and the World-Famous Scuba Diving that Samui’s neighboring island, Koh Tao has to offer.

3 – Because the Weather Doesn’t Suck

Who doesn’t want to walk around in a vest and flip-flops all of the time? Some people (crazy people) like the cold, I for one could not think of anything worse. In Koh Samui you can enjoy the benefits of living in one of the most wonderful climates in the World.

Sure, you’ll have to weather the occasional tropical storm during the rainy seasons, though even they come with their own unique set of charms. Yes, the power of mother nature can be rather intimidating, but there is something inexplicably remarkable about sitting on your balcony and watching as the storms rage and the skies light up in a grand display of electric artistry.

4 – Because the Food in Thailand is far Superior

OK, so this point may be a little biased and of course there are many who will disagree. But for the most part, anyone with great taste will know and understand that the Thai’s truly know how to eat! If you want to get away from the Fish and Chips and the Microwave Ready meals, then look no further than Thailand. They are known the World over as having some of the most magnificent food in the World.

But don’t worry, for those of you who aren’t too adventurous with their food, you will still have access to all of the western cuisine that your hearts desire. With plenty of local supermarkets selling everything you could possibly want for a slice of home.

5 – Because the Properties are Worth Every Penny

It’s no secret that money goes much further in Thailand. For what you would spend on a 2-bedroom terraced house in elsewhere, you could instead buy a villa with your very own private swimming pool! The Real Estate industry in Thailand is booming and there is a wealth of quality and experienced Real Estate Agents in the market who will be able to help you find your dream home without straying over your budget.

In fact, even if you were to simply rent a property in Thailand, (which is entirely viable) to compare – rent prices in the United Kingdom are 96.83% higher. In a nutshell, your money will go much further and you’ll be able to live a much better quality of life. Stop dreaming and make it your reality.

10 Reasons Why Buying a Home in Palm Coast Florida Is a Smart Move

Options abound when it comes to buying property in Florida, including homes on the ocean or a bit further inland. One city to seriously consider is Palm Coast, which is on Florida’s east coast, on the A1A River and the River to Sea Preserve. It offers the best of all worlds, with its size of more than 70,000 and its beautiful scenery. Here are the top 10 reasons to buy in this location.

1. Proximity to Large Cities

It’s not far from some of Florida’s larger cities, such as Orlando (82 miles away), Gainesville (also 82 miles away) and Jacksonville (58 miles away). It’s also near Daytona, which is 37 miles to the south, and St. Augustine, which is 37 miles to the north.

2. Near Key Attractions

It is also near some wonderful attractions. For example, since Orlando is only 82 miles away, it’s an easy day trip away for enjoying the city’s theme parks and other attractions.

3. Things to Do

Residents of Palm Coast have plenty to do and see without leaving town. There are golf courses designed by Jack Nicklaus, fishing expeditions on the Intracoastal Waterway, tours at formal gardens, birdwatching on the Great Birding Trail and explorations of wildlife areas and marshlands.

4. Quiet and Peaceful

While Palm Coast provides easy access to cities and attractions, it is out of the way and therefore doesn’t have the hustle and bustle of a larger place.

5. No State Income Tax

Florida is one of the few states with no state income tax.

6. Great Schools

The nine elementary schools, six middle schools and four high schools serving the Palm Coast area are highly rated and offer various options, including public, charter and private education.

7. Beautiful Waterfront Homes

In Palm Coast, there are plentiful waterfront homes that offer fun, relaxation and beauty. These range from those on the ocean to spots along the Intracoastal Waterway.

8. Mild Climate

The area offers mild weather year-round and pleasant ocean breezes to cool things off in the summer.

9. Reasonable Prices

Home prices in Palm Coast are reasonable, with numerous options in the $200,000 and $300,000 range.

10. Highway Access

It’s easy to get in and out of town, thanks to Interstate 95 being nearby.

10 Things to Evaluate When Buying a Home

Buying a home is a lifetime investment and you need to be very cautious to avoid losing money, buying the wrong house, or buying in the wrong neighborhood. Buying a house is a process that involves a series of steps with the goal of making the wrong choices. Sometimes, when buying a house, you need the help of professionals; for instance, for inspection to ascertain that the house is in the right condition. If you are considering buying a house, here are 10 things you should evaluate:

1. The roof

The roof of a house plays a key role in ensuring your valuable items and family members are safe from different weather conditions. It is important to understand that roofs have a lifespan, depending on the materials used, and the type of roof. Therefore, before you buy a house, ensure that the roof is in the right condition and that it has not exceeded its lifespan to avoid a leaking roof. You can have a roof contractor carry out an inspection to avoid incurring additional roof repairs or replacement after buying the house.

2. The plumbing system

The house’s plumbing system should be working properly to avoid additional costs. Ensure that you like the way the toilet flushes, check the drains, water pressure and faucets in bathrooms and kitchen. In addition, you need to know how long it takes for hot water to get to the shower, whether there is a water softener and the age of the water heater. Most water heaters have a lifespan between 10 – 15 years depending on the model, how they were maintained, and how often they were used as well as other factors. Therefore, checking the age of the water heater will help you know when you should replace it; thus helping you to determine whether it is worth buying the house.

3. The size and the floor plan

When buying a house, you are obviously thinking of settling down with your family as well as about your future. The size of the house and the floor plan are some of the factors you should consider in order to make the right choice. Depending on the type of family you want to have, the size of the house will be a determining factor, because a large home can offer enough space for your family and friends when they visit, as well as a home office. However, you will have to pay more for a larger home – both in mortgage and utility bills.

4. Location

Your neighborhood plays a key role when buying a house because it not only affects the value of the house but also availability of resources and security. You should gather as much information about the neighborhood as possible to make sure that it is safe and has all the facilities (social amenities) you need. Consider the proximity of your home to your place of work and ease of access because you will need that every day. However, you should know that the location might determine the value of your house.

5. Electrical systems

Just like the plumbing system, your electrical system should be working properly to avoid possible injuries and accidents. A good electrical system also has little or no maintenance and repair costs after you’ve bought the house. Therefore, when evaluating the electrical system, make sure you know how much the electrical system can handle, whether the electrical sockets are upgraded to take grounded plugs or the type of electrical system used to wire your house. If you cannot o the assessment yourself, hiring an electrician is a better option.

6. Kitchen appliances

You will need to use your kitchen every day after buying the house. Hence, checking the condition of the microwave, refrigerator, kitchen range, dishwasher and other kitchen appliances. If the house has a gas range, you should know whether it has a pilot light or an ignition starter and above all, know if these kitchen appliances will be sold with the house. You can make up your mind whether you want them or you will buy your own kitchen appliances depending on what your preferences and budget estimates are.

7. Interior environmental hazards

It is important to look for interior environmental hazards in a home to avoid exposing yourself and your family to health hazards from toxic substances. For instance, in an older home, you need to look for any asbestos coating on the furnace, pipes, heating systems and on water heaters. Make sure that the basement is tested for the presence of any poisonous gases e.g. radon which is carcinogenic and may cause lung cancer. You should also be on the lookout for carbon monoxide and vermin to make sure that your home is safe. Finally, an inspector should determine whether the house has any lead-based paints because they are poisonous. In fact, homes that are offered for sale should not have any lead-based paints under federal laws.

8. Structural problems

Although you cannot buy an old house in perfect condition, it should have few or no structural problems. If you buy a house that has numerous structural problems knowingly or unknowingly, you will end up spending a lot of money trying to fix them. Know the state of the interior walls, roof, gutters and downspouts, flashings, doors and windows. Remember to inspect the floor too, as well as the fence and other structures in your house.

9. The Bedrooms and bathrooms

First of all, you need to decide how many bedrooms and bathrooms your house should have and then start looking for such a house. This will be determined by your preferences, family size and budget. You will then evaluate the conditions of the bathroom and the bedrooms, their size and closets as well as the flooring. Your bathroom should have tiles for easy cleaning as well as a showerhead or a bathtub or even both. If you are thinking of adding extra room in future, have an architecture advice you whether it is possible after considering lot usage, space planning and city regulations.

10. Check outside the house

Finally, evaluate the exterior part of your house because it also plays a role when buying your home. Does it have enough landscaping and a fence, where are the lot (or property) lines and the condition of the garage? Don’t forget to check the condition of the fences, patio and the deck.

Expat Foreign Owner Loans: How to Get a Home Loan in Australia If You Live Overseas

Expat foreign owner loans are loans offered to many Australians who are living overseas (Australian expats) due to many reasons like work opportunities or marriage. They tend to live overseas longer than expected but would still want to retain their roots and invest in a property in their homeland, Australia.

If you’re an Australian citizen living overseas and trying to secure a home in Australia, the process will be different compared to a standard home loan. There are many banks and lending institutions that offer expat loans. This loan also has higher interest rates compared to regular home loans.

Important: Australian expats (who are citizens of Australia or enjoying dual citizenship) will NOT need to get an approval from the Foreign Investment Review Board (FIRB).

How To Secure A Home In Australia via Expat Foreign Owner Loans

Some banks and other lending facilities find it risky to offer home loans to Australians living abroad. But there are also banks who are willing to extend credit to Australian expats. Here are steps you can take for you to acquire a loan to purchase the home of your dreams.

1. Assess if you are able to avail an expat loan. Take note that expat lending entails higher interest rates, so it is best to compare banks and lending institutions that provide the best rate. Below are factors that can affect expat foreign owner loans.

  • Australian citizen living abroad
  • Australian permanent residents living abroad
  • Australian living in New Zealand
  • Australian married to a foreign citizen
  • Tax rate of the country you reside in
  • Source of income – are you self-employed?
  • Foreign business income
  • The currency of your income
  • Borrowing power
  • Power of attorney
  • Loan-deposit?

2. Speak with an experienced mortgage broker specifically around expat loans. It is more beneficial to work with a mortgage broker considering the daunting process and documentation needed to pursue an expat home loan. Mortgage Brokers have wide access to a multitude of banks and lenders that offer various loan types including expat loans3. Get your documents ready. Documentation will depend on your situation. The bottom line is that banks and lenders would like to see proof of your ability to make repayments once the loan is granted. Be ready with the following:

  • Proof of income. Pay slips or foreign tax returns for employed. Special considerations are given to self-employed individuals living overseas however this could be a difficult process.
  • Valid work visa. This document is part of the verification process. This document will not be needed if you have dual citizenship in the country of present residence.
  • Other documents include a copy of your passport, your credit history, your current debt obligations.
  • Power of Attorney. In some cases, you might need to get power of attorney for your trusted relative or friend who can do some favors on your behalf.

4. Get a Pre-approval for your loan. Pre-approval is an issued letter from the lender stating that you meet their requirements for an expat foreign owner loan. The letter will also state the amount or percentage you are able to borrow.Getting a pre-approval gives peace of mind where you can actually make a loan regardless if living in a foreign country. Pre-approval also speeds up the whole process of purchasing your desired property in Australia.

5 Economic Considerations For Buying A Home

While most potential home buyers, recognize, they need, to save for a down – payment, be prepared for repairs, etc, and afford the monthly costs of home ownership, many, either, ignore, fail to understand, or don’t consider, some of the other, relevant, economic considerations, for whether one, would benefit, by owning a home, of their own. Especially, when it comes to first – time, homeowners, the more they understand, and consider, the wiser, their decision – making process, might be. With that in mind, this article will attempt to briefly, review, consider, and discuss, 5 relevant, significant, economic considerations, for buying a house.

1. Tax deductions: Although, for many, especially, those in, so – called, high SALT states/ regions, the tax deductions, associated with home ownership, are less than they have traditionally been, there is still an, up – to $10,000 tax deduction, on one’s federal tax return, for the state and local taxes, we pay, Therefore, when we consider, whether, there are advantages, to buying, instead of renting, this must be factored in. If the net – numbers, of renting, versus, owning, are compared, and if they are close, home ownership often becomes more economically, advantageous, because of the appreciation, and equity, involved, in owning.

2. Mortgage/ mortgage interest: Mortgage interest, up to that paid, on a $1 million mortgage, is still, tax – deductible, so, when one considers, if it makes sense, for him to purchase, this must also be considered. In addition, a wise consumer considers, whether his monthly costs, are within their personal comfort zone, and strengthens, their enjoyment, etc.

3. Local real estate market: While there is, often, much discussion, about the overall, real estate market, every local area, is different, and certain ones, appreciate more, and/ or, depreciate, less, than other areas/ regions/ neighborhoods! One should, carefully, consider, whether, the location of the particular property, is one, which meets your needs, and priorities, desires, before buying, because, unlike renting, purchasing a home, requires far more commitment, than renting, does.

4. Competitive Market Analysis (CMA): Never purchase a house, unless you check, whether it’s worth, at least, what you pay for it! To do so, the best approach, is to have a professional, real estate agent, prepare a fully – considered, relevant, Competitive Market Analysis, or CMA.

5. Will the assessment match – up, with the price paid?: You won’t get the mortgage, needed, and required, until/ unless, the particular property, assesses, for the amount, you are paying! Mortgage lenders will only provide mortgages, based on the assessed value, not, on what you are paying, so if this property, is not valued, as high as you are willing to pay, you will need, to put down, a larger down – payment, to make up, the difference. Will you have the additional amount of reserves and resources, needed?

Wise buyers review many relevant factors, and these 5 economic considerations, must be considered carefully. Will you be a smart home buyer?