Friday, March 27, 2015

Building Wealth With Homeownership 103

Parts 1 and 2 of this series explained building wealth is not about quick profits! It’s about steadily increasing your net worth over time.

Home ownership is one of the easiest ways of building wealth that’s available to the general public, non-investors, and average middle-class Americans. Part 1 and 2 contained Rules #1 thru #7…

Rule # 8: Be careful about the costs of home improvements. 
Typically, most improvements do not increase your home’s value dollar for dollar. That does not mean they aren’t worthwhile. Just understand they are not always building wealth. There is a difference between making improvements to enhance living and enhancing property value. Most improvements are a combination of both.

Here’s an example. Let’s say you want to add carpet to a room. You can pay $12/sq.yd. for carpet, or pay $24/sq.yd. Will you get the difference in price back when you sell? Probably not, because a future buyer may not think the difference in the carpet is worth the price to them. So, you must decide if the difference in price is worth it for your own enjoyment. Watch here for a future article for more details.
Rule # 9: Understand the difference between appreciation and inflation.    
Many people talk about homes as “investments,” and how they “appreciate” in value over time. True investments produce a return on money invested. That is not truly the case with private homes. Homes actually depreciate in value because structures deteriorate if not maintained properly, which costs money.

Typically, a home increases in value through inflation, not appreciation. As general economic inflation increases the cost of goods and services, it is also inflating the cost of housing. This increases your potential wealth because home ownership is a type of hedge against inflation. Paying attention to Rules 5,6, and 7 creates wealth.
Rule # 10: Know your financial position when it’s time to sell.  
Stay in touch with your Realtor to keep current on local home values. Pay attention to economic inflation rates. Maintain your home with an eye toward cost of living. If you are careful and thoughtful you will be successful at building wealth.

Information courtesy of Orlando Realtor Teri Isner, Orlando Avenue Top Team.
Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.
You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.
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Friday, March 13, 2015

Building Wealth With Home Ownership 102

Part 1 of this series explained building wealth is not about quick profits! It’s about steadily increasing your net worth over time.
Homeownership is one of the easiest ways of building wealth that’s available to the general public, non-investors, and average middle-class Americans. Part 1 contained Rules #1 thru #4…
Rule # 5: Understand the difference between paying costs of living and paying toward wealth building.
Costs of living contribute nothing to wealth building. Examples of these are property taxes and insurance, utilities costs, mortgage interest, etc.
Some of these costs are hidden when you rent because the landlord pays them. Utilities are costs you pay. In both cases, once they are paid, the money is gone. On the other hand, mortgage principle payments build equity.
Rule # 6: Understand how your mortgage works.
When you make a monthly mortgage payment, it’s not just paying the mortgage company. It’s also paying YOU! Part of the mortgage payment is interest on the outstanding balance of the loan. Interest pays the lender for loaning money and is a cost of living.
However, part of the mortgage payment reduces the principle loan amount owed. Every month you make a payment the loan amount gets smaller. Therefore, the interest you pay the next month is a little smaller. Since the monthly amount you pay is a fixed number, as the interest amount gets smaller the amount paid toward reducing the loan gets larger. That is money you are paying yourself.
Think of payments that reduce your loan as a forced savings account…it’s increasing your wealth. Your equity is the portion of the value of the property that you actually own. To find the value of your equity you must subtract what you owe from the property value. Therefore, as you make payments that reduce how much you owe, each month you increase your equity and are building wealth.
Rule # 7: Consider making extra payments on your mortgage.
You should have the right to pay extra toward reducing the principle on your loan anytime you choose. Your monthly mortgage payment has two parts: first, you pay interest based on the outstanding amount of the loan; and second, the rest of the payment reduces the loan itself. When you add extra money to your payment it will reduce the loan even more, and build equity and wealth faster.
Watch for Building Wealth With Home Ownership 103 for more rules to follow while you own.
Information courtesy of Orlando FL Realtor Teri Isner.
Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.
You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.
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Friday, February 27, 2015

Building Wealth With Home Ownership 101


This blog is not about quick and easy profits! True wealth building rarely is. It’s about steadily increasing your net worth over time. It is not about speculative investments to get rich quick. It’s about how to build meaningful wealth while enjoying your home.
There are many variables and moving parts to the home ownership puzzle. But, it’s not brain surgery either. Home ownership is possibly the most accessible means of building wealth that is available to the general public, non-investors, and average middle-class Americans. Here’s how to make it work…
Rule # 1: Consider the “5-year Rule” before you decide to buy.
Don’t consider buying a home unless you plan to own it for at least 5 years. That is because the wealth building cycle starts very slowly during the first 5 years.
After 5 years, the wealth building cycle begins to accelerate. Selling before then may cause you to lose money because you won’t necessarily get back all the up-front costs of buying.
Rule # 2: Make sure you don’t pay too much when you buy!
Any retailer will tell you they make their profit when they buy. That’s because consumers in the marketplace will dictate the final sale price. The retailer can’t control that. The retailer can only control what he pays for an item. The difference between what he pays and what he can sell it for is his profit.
It’s the same with housing. Get proof of the current value of the property you’re buying by researching the comparative values (“comps”) of similar properties actually sold recently. These are available for free from your Realtor.
But, don’t accept fancy terms of a loan like adjustable rate mortgages (ARM) or deferred (balloon) payments. A fixed rate over the length of the loan is more preferable so you know what to expect over time. Remember, this is about wealth building, not speculative investing!
Rule # 4: Pay for a professional home inspection after you are under contract.
Then be insistent that everything is in top condition before you buy. Remember, there are a lot of moving parts. You must minimize how many of them are likely to breakdown soon after you buy.
Watch for Building Wealth With Home Ownership 102 for rules to follow while you own.
Information courtesy of Orlando Realtor Teri Isner.
Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.
You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.
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Thursday, February 19, 2015

Kissimmee FL Real Estate Market Video - February 2015



Welcome to your up-to-the-minute February 2015  edition of Market Snapshot for Kissimmee Florida compliments of Teri Isner. This report is personalized with charts including market activity for homes in the 34741 zip code. Let’s take a look.


Interested in getting a personalized Market Snapshot? Simply visit www.OrlandoAvenue.com, select the Market Snapshot box, and enter the zip code you want to watch.
Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.
Get Orlando Daily News delivered to your inbox! Subscribe here!

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