Neighborhood Home Buying Tips & Hurricane Season in Orlando: Who Get's Power First?

We hired a seasoned electrician for several projects around the house the other day, and during one of our discussions, he opined on our Hurricane Season then offered some interesting observations that I never considered.

For example, following a major hurricane, older neighborhoods like Thornton Park will likely take longer to have power restored following a hurricane compared to a newer suburban area like Lake Nona.

It has nothing to do with one area having more clout over the other; it has everything to do with buried power lines VS utility pole supplied power and making $$$.  In his view, money is the ultimate prioritizer following hurricanes.

In newer areas where utility lines are buried, like Lake Nona, homes are connected to transformers and sub-stations which feed neighborhoods with electricity.  If a transformer or sub-station goes down, you could have hundreds of consumers affected...consumers who are not consuming (purchasing) power from the utility company.

In Thornton Park, if the beautiful Live Oak tumbles to the ground and takes out your power line in the process, is the utility company going to send its crew to an individual consumer first or take care of a sub-station supplying (selling) power to hundreds?

Let's hope we never have to experience it first hand to see if he's right.

Do You Qualify For Down Payment Assistance? Find Out Now!

                                                    

 Do you qualify for down payment assistance?  

What's Stopping You? 3 Reasons Buyers Have Trouble Saving For A Downpayment

What's preventing you from buying your first property?  A recent study found that most people defer their long term goals, including purchasing their first home, due to outstanding debt.  What are the biggest culprits?

1. Credit Card Debt: 50% of us sweat the billing statement each month, knowing the outstanding balance grew despite making more than the minimum payment.

2. Student Loans: 46% of us are strapped into unholy agreements with Sallie Mae, Navient, etc., for loans WHICH  WILL  NEVER  GO  AWAY!!!!!!

3. Car Payments: 38% of us have a car loan.

I was stuck with "all the above" when my partner and I looked for our first place 23 years ago.  My debt to income ratios were so high (which disqualified us for traditional financing) we decided to search for someone willing to sell with seller financing instead of traditional bank financing.  The plan worked!

We purchased our first home with seller financing, a side by side duplex, and a couple years later we refinanced into traditional bank financing using the rental income to qualify for the loan.

That's how we got our start.

Buying VS Renting: Which Type Of Financial Benefits Do Homebuyers Get That Renters Don't? Part 3.

Buying VS Renting: Part 3 of Series.

Discount Points Deduction

I am guessing most people don't know about discount point(s) and how they work. What, exactly, is a discount point and why should you even consider it?

A Discount Point(s) can be used to lower the interest rate on your home loan.   

Generally speaking, each point costs 1% of the loan amount, so if you have a $200,000 mortgage and purchase one discount point for $2,000 (1% of loan amount), you’d get a one-time $500 tax savings assuming you’re in the 25% tax bracket ($2,000 x 0.25 = $500).

If you plan on holding the property for 5+ years and want to lower your mortgage interest rate, consider paying point(s).

Pt. 1 Mortgage Interest Tax Deduction Article May 6, 2015.


Pt. 2. Property Tax Deduction Article May 18, 2015.


Pt. 4. Mortgage Insurance Deduction.


Pt. 5. Going "Green" Deduction..

Buying VS Renting: Which Type Of Financial Benefits Do Homebuyers Get That Renters Don't? Part 2.

Buying VS Renting: Part 2 of Series.

Property Tax Deduction

Did you know that homeowners pay taxes to their local jurisdictions, such as 

the county, city, or school district?  Did you know those property taxes are fully deductible? 

Whether it's a $750,000 owner occupied home in Thornton Park, Orlando, or a $300,000 rental condo in Boys Town, Chicago, all property owners (landlords and regular homeowners alike) take advantage of this important deduction.  

Unfortunately, renters aren’t eligible for this property tax deduction since it's only offered to property owners, not renters.

Landlords don't own rental properties because they enjoy late night phone calls about the over flowing toilet or broken AC, they own rentals because YOU, the RENTER, through your monthly rent payments, indirectly pay the landlords taxes and mortgage payment...while he/she gets all of the deductions!

PT. 1 Mortgage Interest Tax Deduction Article May 6, 2015.


Pt. 3. Points Deduction.


Pt. 4. Mortgage Insurance Deduction.


Pt. 5. Going "Green" Deduction.

Buying VS Renting: Which Type Of Financial Benefits Do Homebuyers Get That Renters Don't? Part 1.

Mortgage Interest Deduction

Do you know the mortgage interest deduction lets homeowners deduct the interest on their home mortgage up to $1 million ($500,000 if you’re married filing separately)?

In fact, because a greater share of the house payment during the first few years of the loan goes toward interest, roughly two-thirds of the monthly mortgage payment is deductible interest.

That can translate to a hefty tax deduction! 

For example, a $200,000, 30-year fixed-rate mortgage at 4% will result in $8,000 interest the first year you own your home. Deducting that interest will save you $2,000 if you’re in a 25% income tax bracket ($8,000 x 0.25 = $2,000) and even more if you are in the 15% bracket.

In addition to the mortgage interest deduction, homeowners (and landlords) take advantage of other deductions that renters don't.  The landlord and apartment complex owner gets all the tax benefits associated with property ownership while the renter typically pays the cost.

Buying VS Renting: Upcoming Articles

PT. 2 Property Tax Deduction.


Pt. 3. Points Deduction.


Pt. 4. Mortgage Insurance Deduction.


Pt. 5. Going "Green" Deduction.

Seller's Estimate Closing Costs

This simple link will help you estimate the costs to sell your house/townhome/condo.  Remember, seller pays doc. stamp for existing sales and buyers title insurance policy IF you are choosing the title company...if buyer chooses the title company they can pay their own title insurance.