HAZARDS TO HOME VALUES – Part 3

HAZARDS TO HOME VALUES - Part 3



welcome to my third and final blog called hazards to home values and this is the ABCs of home buying here are my financial ABCs for home buying there are also lots of personal reasons for choosing the right home such as the right to neighborhood and using Mike and Nikki as the right real estate agents a always buy pre-owned a used home will not have the constant new builder developer competition that has gone on in our local area Palmetto Bay and Cutler Bay Area's for over 30 years and that's the lennar corporation they keep building the homes cheaper and cheaper knowing buyers new to the market generally prefer newer homes and of course that's a mistake as you will get a much better investment growth in a used home of course there are also other advantages to buying pre-owned homes a seller will often include personal property like window treatments fans and fixtures pool equipment and hurricane shutters etc also you are usually buying a more established neighborhood that has community support a proven school system and a larger lecture landscape these items all add up to greater resale value and keep in mind that single-family homes with yards appreciate that the best rate townhomes are next best and condos are last be buy a home with the lowest down payment that you can there are many reasons for this but the most important ones concerned the boom or bust scenarios and a boom period of rapidly escalating prices you're guaranteed greater profits by the principle of leverage by using OPM other people's money your return on equity is much greater than had you paid cash in a bus period of declining prices the answer should be 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 now they're at least five areas of tax advantage I've listed and the attached PDF please see that for these further advantages see choose a smaller to medium-sized home in the best neighborhood that you can possibly afford in other words never buy quote the biggest house on the block recall the age-old axiom of real estate that says your main consideration should be these three things location location location now I agree with this but I take it one step further the better the area the better the appreciation except for the largest quote above average home in a quote average neighborhood your chance of 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 ABCs of home buying I will summarize all three hazards of home values in the next issue August and in the meantime I hope you're having a great summer Miami Mike signing out hasta LaVista

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