St. Louis Real Estate Blog

February 21st, 2017 4:51 PM

If you're like most first-time home buyers, you've probably listened to friends', family's and coworkers' advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home
couple hugging in new home

Pride of Ownership
Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation
Beyond pride of ownership, it's important to realize another benefit. First, real estate moves in cycles, sometimes up, sometimes down, yet over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions
Home ownership is a superb tax shelter and our tax rates favor homeowners.

Sometimes the mortgage interest deduction can overshadow the desire for pride of ownership as well. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.
Property Tax Deductions
IRS Publication 530 contains tax information for first-time home buyers.

Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.
Capital Gain Exclusion
As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation.
Preferential Tax Treatment
If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year.

Capital assets receive preferential tax treatment. This means even if your profit exceeds the exclusion, the taxable portion will be much less than you might imagine.
Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.
Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.
*this article is orginally from thebalance.com





Posted by Administrative Manager MelanieCooperTeam on February 21st, 2017 4:51 PMLeave a Comment

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February 21st, 2017 1:53 PM
OPEN HOUSE!!
Sunday 2/26 1-3PM
31 Rockwood Forest Valley located in Eureka
4 Beds, 4 Baths, 2,86
3sqft, Rockwood School District
$385,000
This fabulous 1.5 story home is freshly painted with new updates in the kitchen. It also has amenities such as a stone fireplace, sun-room, breakfast room, and walls of windows to really bring the outside in. 



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A fresh coat of paint is a fairly inexpensive way to refresh the look of your home; the average exterior paint job costs about $2,600, while interior paint costs $1,660, according to Home Advisor. But choose the wrong shade and you could wind up regretting it later. Paint your home with a weird color either inside or out and buyers might turn up their noses, even though repainting is a relatively easy fix.

Fears of hurting a home’s selling price are likely one reason why many homeowners play it safe when it comes to paint colors, especially for a house’s exterior (restrictive HOA rules, which affect 20% of Americans, might be another). Favorite exterior color combinations include white and gray, beige and taupe, and slate and black, according to the 2013 National Home Color Survey.

Neutrals also win inside the home. Hot interior paint colors for 2016 include grays and shades of white, along with natural-looking greens. The love for neutral or natural shades extends to buyers. When Zillow Digs analyzed photos of 50,000 recently sold homes, they found those with rooms painted in certain colors tended to command higher selling prices than expected. Homes with creamy yellow or wheat-colored kitchens, light green or khaki bedrooms, dove or light gray living rooms, and mauve or lavender dining rooms sold for $1,100 to $1,300 more than properties decorated with less popular colors.

“A fresh coat of paint is an easy and affordable way to improve a home’s appearance before listing,” Svenja Gudell, Zillow chief economist, said. “However, to get the biggest bang for your buck, stick with colors that have mass appeal so you attract as many potential buyers to your listing as possible. Warm neutrals like yellow or light gray are stylish and clean, signaling that the home is well cared for, or that previous owners had an eye for design that may translate to other areas within the house.”

Light grays and yellows may have been popular with buyers, but they had a much cooler reaction to other colors. Some of the interior paint colors they disliked might surprise you. Before you grab the paintbrush, check out this list of the four worst colors to paint your home.

1. Off-white or eggshell

Shades of white might seem like a safe bet when you’re at the home improvement store, but they aren’t guaranteed to be a big hit with buyers. Homes with off-white or eggshell kitchens sold for $82 less than Zillow estimated they would. Instead, people loved kitchens with a coat of wheat yellow paint on the walls, which boosted a home’s selling price by $1,360.

You don’t have to give up gallery-white walls entirely, though. Painting a room white isn’t always a bad choice, especially if the space has great natural light, according to designer Emily Henderson. But if a space is small or dark (like some kitchens), white walls can make a room look “dead” and “flat.”

2. Dark brown

Dark brown walls didn’t resonate with buyers in Zillow’s study. Bedrooms painted dark brown sold for $236 less than expected, while using the same shade in a bathroom lowered the selling price by $469. The color is so disliked by some people that the Australian government considered using it on cigarette packaging to make smoking less appealing, according to the Sydney Morning Herald. (They went with a brownish olive green instead.)

3. Terracotta

It’s not quite as jarring as traffic cone orange, but even a more muted terracotta shade could depress your home’s selling price. Homes with living rooms painted the same shade as an inexpensive flower pot sold for $793 less than Zillow’s estimated price. Light gray was the preferred color in that room.

The negative reaction to orange walls isn’t too surprising, considering surveys have found it’s one of the least-liked colors in the world. (Blue is the most popular color by far, followed by red and green.)

4. Slate gray

Gray is trendy color right now, but all grays aren’t created equal. While dove or light gray was a hit in living rooms, helping to boost a home’s selling price by $1,104, dark gray was a dud. Paint your home’s dining room a slate color and you could lose $1,112 when it comes time to sell. Instead, buyers favored shades of mauve, eggplant, and lavender in the dining room.

 

(Article From Marketwatch.com)

Posted by Administrative Manager MelanieCooperTeam on February 17th, 2017 5:05 PMLeave a Comment

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February 17th, 2017 1:39 PM
O P E N  H O U S E!
Saturday 2/18 from 1-3PM
154 Beard Dr Unit A located in Eureka
2 Bed, 1 Bath, 952 sqft
This condo is conveniently located in the heart of Eureka and extremely cozy! It is located on the ground level, has main floor laundry, an eat in kitchen, and even has a wood burning fireplace for ultimate comfort!
$85,000



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February 15th, 2017 2:40 PM
Open House!
Sunday 2/12 1-3PM
17366 Hidden Valley Dr, Eureka
4 Beds, 4 Baths, 3,100sqft
Unique 1.5 story home with breath taking views, open floor plan, vaulted ceilings, and skylights offering lots of natural light!
This home has many new updates and over 4 acres of tastefully designed land.
$450,000

Maris Link


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