How to protect your home value Part-3 of Mike's Blog: Strategies for U.S. homes - yours included!
The ABC's of home buying
Here are my financial ABC's for home buying. There are also lots of personal reasons for choosing the right home such as the right neighborhood and using Mike & Nikki as the right Real Estate agents.
A - Always buy pre-owned… Read more
Of course, there are other advantages in buying pre-owned homes:
A seller will often include personal property like window treatments, fans and fixtures, pool equipment, & hurricane shutters, etc.
Also, you are usually buying a more "established" neighborhood that has community support, a proven school system, and larger, lusher landscaping.
These items all add up to greater resale value! And…Keep in mind that single family homes (with yards!) appreciate at the best rate, town homes are next best, and condos are last.
B - Buy a home with the lowest down payment that you can!
There are many reasons for this, but the most important ones concern the "Boom or Bust" scenarios. In a Boom period of rapidly escalating prices, you are guaranteed greater profits by the principal of LEVERAGE. By using other people's money, your return on equity is much greater than had you paid cash. In a Bust period of declining prices, the answer is obvious; it's much easier to "walk-away" from a small down payment than it is from a larger deposit.
Another important reason to consider is income taxes:
There are at least five areas of tax advantages listed in the attached PDF….
C - Choose a smaller to medium sized home in the best neighborhood that you can possibly afford.
In other words, NEVER buy the "biggest house on the block". Recall the age-old axiom of Real Estate that says your main consideration should be three things: location, location, location.
I agree with this, but I take it one step further; the better the area, the better the appreciation except for the largest “above average” homes in an "average" neighborhood. Your chance for profit is much better in a smaller to medium home in a good area!
Hope you have enjoyed Mike’s three-part blog series including this month’s July 2017 ABC’s of home buying... I will summarize all three hazards of home values in the next issue, August, and in the meantime, hope you’re having a great summer…. Miami Mike signing out…
Hasta la vista…..
YGRENE (which is the word energy spelled backwards), PACE,
(acronym for Property Assessed Clean Energy), or Green Corridor… call it what you will, you need to be aware of the hazards to home values with these “property improvement programs” that promise a lot, but might be hiding the negatives… Read more
They were shocked and dismayed, and I wouldn't be surprised if they join the class action suit taking place nationwide against Ygrene…
Don't find out the hard way… Don’t get stuck…
Don’t find out that your home is unsalable….
Just google ygrene PACE loan class action lawsuit for more details… or click below
Ygrene's class action lawsuit (Click Here)
And we thought we had it bad the last 5 years or so with hazard insurance,,,,homeowner insurance companies like Citizens re-inspecting houses with the harshest inspectors possible and taking away every single discount from us that they could… and, we thought that was bad enough? Read more
At least that crisis is mostly confined to Florida alone, but the new, bigger, costlier insurance crisis will affect nearly everyone in the United States and, it’s name? TA DA…, Flood Insurance… How about 5, or 6, or even $7000 each year just for a single flood insurance policy? I’m sorry folks but this is real… and it’s deadly.
The Biggert-Waters Act was passed in 2012 and rates started increasing in 2014 – I have supplied links and articles below for those desiring more intense explanation, but here's the bottom line and what I tell all of my clients, whether they're moving locally or to another state, it's this simple:
If you buy a house built prior to 1975, make sure it's in zone X… exempt from mandatory insurance requirements concerning flood… otherwise, you take the risk of paying as much as 5000 to $7000 per year, just for a single flood insurance policy for your home.
FEMA is responsible for managing the NFIP - national flood insurance program-and the losses relating to HURRICANE and windstorm over the past decade have been horrendous, with debt going from $18 billion-$24 billion and that's without calculating debt from hurricane Matthew up and down the coastline last year! I will not be surprised that once the new losses are calculated and published, the total loss incurred could have doubled and that means serious trouble for decades to come.
Here's some warnings in the Bay Area that I specialize in… For Cutler Bay, anything built east of Old Cutler Rd. is a flood zone and real problems exist for those homes built prior to 1975; the same is true for the Tiffany Drive area, as well as the following areas in Palmetto Bay: south of Coral Reef Drive, most areas between US1 and Old Cutler are in a flood zone, and again, a real problem if your house was built prior to 1975… a special note: north of Coral Reef Drive is a little bit better but still plenty of problem areas resulting in me issuing this severe warning:
Sellers: problem areas will make it harder if not impossible to sell your home in future years, “whoever has ears, let them hear”. Don’t get caught in a situation where you have no option to move, especially at the lower prices anticipated.
Buyers: keep it simple: look for homes built after 1975 or built-in zone X.
This advice is true anywhere in the United States and, as you will see in upcoming issues of the “hazards to home value” blog, I will compare the advantages and disadvantages of pre-and post-1975 homes throughout the country.
This is Mike Schuler, signing out until next month, and remember… for all your real estate needs especially in the Cutler Bay Palmetto Bay areas, don’t make a move without me.
Have a great day….
Awarded #1 Realtor Team of the Century (2000-2016) for the "Bay Area" - Palmetto Bay and Cutler Bay Combined.
(total transactions reported per Miami multiple listing service)
"Dont Make a Move without Us"
Licenced Real Estate Broker
work (305) 238-6453
Cell (305) 494-0402
Fax (305) 574-0199
Nikki Schuler Black
Licenced Real Estate Agent
Work (305) 238-6453
Cell (786) 402-7674