Buy or Rent?

Should you buy or rent?  Each option offers its advantages. 

Buying property offers you the opportunity to build equity and take tax deductions.  This year there is an $8000 tax credit for first time buyers.  Ownership can be rewarding allowing you to fix up and decorate a property the way you want without the concern of rent increases or a property being sold.

If you are in the market and plan to stay awhile, then buying a property could be a good move, especially with the current low mortgage rates.  However, if you don’t like worrying about property maintenance and if you are planning to move in the near future, then renting may be your best option.

If your family size is growing larger or smaller, take that factor into condsideration.  Whether you decide to buy or rent, think through your situation carefully and make the best choice for you.   Consider the maintenance, utility costs, neighborhood, resale value, parking arrangements, square footage and layout of the property.  Make a list of what is important to you and weigh the advantages.

It’s a buyer’s market!  The housing market in Broome & Tioga has been sluggish this year and autumn should bring some good buys.  Sellers must remain patient and will need to reduce their prices if they really want to sell.  Our real estate market has been sluggish due to local economic factors and a tightened supply of money.  Every good business owner must now look at how to run his or her business more effectively, government too!  With sales slowing in almost all industries, the economy has weakened and more specials are being offered across the board.  The government’s cash for clunkers program for automobiles and the $8,000 federal housing stimulus for first time homebuyers are good programs for those who are in a position to take advantage.  What will the next stimulus package be as our country goes further and further in debt? 

Buyers need to make good choices as they continue to view properties.  Remember, location, condition, maintenance and monthly payments are all important factors when purchasing a property.  Keep your eye on the market and you just might find some good deals.  If you need help, hire us!

Residents of Broome County, beware of future tax increases.   Pension funds, wasteful spending, federal mandates, increased police and fire protection costs, and a decaying infrastructure will add to the tax increases that lie ahead for us property owners.  Taxes are inescapable.

When government gets too big we begin to see more and more waste.  We need to realize government cannot solve all of today’s problems.  Every time new legislation is enacted we usually see more taxes.  How are we to going to feed America today and fight crime on the streets?  

Families today are not accepting responsiblity and many residents don’t even bother to vote.  We see neighborhood blight and crime growing, yet politicians act as if they have the answers, but they cannot solve social ills with their liberal programs that breakdown family values.  Who can afford all the utility, food, property tax, increases and still be able to maintain their properties?

Our curbs and streets are a mess, yet we must bear the burden of repair.  A smaller government would serve us better.  Many property owners receive property and school tax exemptions and non profits pay little for the services they receive.  Our welfare system continues to grow and places a greater burden on society.  How can we change failed governmental policies?  How bad must things get before change takes place?  Everyone wants something for nothing.

The middle working class is so busy trying to make ends meet, they have little time to associate with their neighbors or enjoy life.  Social welfare continues to grow, jobs have become meaningless, new construction is minimal due to overtaxation and now we await the next boom of gas drilling to pull our region through. 

We must go back to an austerity budget, cut taxes and get people back to enjoyable and sensible jobs without breaking the back of small business.  More job losses and more entitlement programs spell disaster for our county.   Tax us more and you will eventually see more residents move away and more properties will deteriorate and be put up for sale. 

The era of the free lunch must end and each person who is capable of contributing must do so.  Society cannot continue to meet the increased costs of insurance, cell phones, sewer, water, utilities and basic food staples. 

We must watch this year’s election process carefully and stand behind the candidate and leader that offers hope, has integrity and is budget minded to cut all unnecessary spending.

As your real estate advisor, you can expect to see property values decrease especially in high end housing.  Taxes will continue to rise. Investors will need to be more cautious as prices decline and expenses increase.  Don’t be fooled by the numbers; buy only what you need and what you can afford.  Do not use credit or leverage yourself too far in debt.

The world today is comprised of many people from different cultures with many faiths.   While various religions have different view points, most religions teach us to love one another.  Christianity offers its own version. 

Building faith, finding appreciation for life and trying to understand what life is all about can lead us to many questions.  We often wonder who made the universe, how big is it, why do we exist, what is our purpose, and why is there so much suffering in this world?  Answers to these questions may not seem simple, but the Holy Scripture provides us with answers.

Developing compassion for mankind is essential if we are to coexist and grow our emotional intelligence.  While each religion offers something different, not all religions believe Jesus Christ to be the son of God.  Not all religions teach about the virgin birth of Jesus, his missionary work, his resurrection, his ascension to heaven, his return to earth and his second coming.  Christianity specifically teaches us about the works of Jesus Christ and why we should believe and follow him. 

As Christians, we receive Jesus Christ as the son of God.  We believe God sent his one and only son to teach us life’s valuable lessons.  As we learn and study about the teachings of Christ, we learn much about God and what he offers each of us.  

While some things in life may hard to explain or understand, the teachings about Jesus Christ’s life is the story about salvation.  By accepting Christ as your savior, God promises you eternal life.  It is this promise from God that makes Christianity different from all other religions, because our acceptance of Jesus Christ provides eternal life!    

In daily life, I meet people with different beliefs.  Many people have a difficult time trying to explain their viewpoints, belief systems and spirituality to me.  In fact, some people really haven’t given much thought to the meaning of life nor do they really want to think too deeply about it.  They are often caught up with everyday living, work, survival, or busy being entertained by television or computer games.  What kind of life are they living and what are they missing out on? 

I believe we are all here to fulfill a purpose.  As we search for our purpose, we must look far and wide enough, but eventually we will come to a conclusion of our own. Some people may go round in circles for a long time finding no answer at hand, while others may go straight to the center.  It takes some people a life time to find their faith, while others can find their faith in no time at all.  Why is this so? 

God has made us all different and our thoughts and actions are not always pure, because sin resides in all of us, no matter how perfect we try to become! As we walk down that road, God offers us a relationship, a relationship built on understanding, compassion, hope, patience and faith.   

God has a plan for all of us, and for some of us we do not find it easy.  Seek God first and you shall find wisdom.  Build your faith by reading the word daily and you shall experience joy.   Avoid needless distractions and build the type of relationship you want with God.  Find what you are seeking and reach your potential.  God will show you the way!   

If you haven’t already, you will soon learn that life is more than acquiring money and materialism; it is not about earthly pleasures that burn and fade away.  It is not about selfish acts or enticing desires.  It is all about discovering a love so deep that only God can offer.  It is about helping one another, about discovering the truth and finding salvation.  Take a deep breath, free yourself of guilt, anxiety and sin and take a step closer to Christ.  Establish a living relationship with Christ, for he will show you the way!

Would you like to receive all newly listed properties the moment they are listed?  Don’t miss out!  Sign up for our Property Alert and we will send you our area’s newest listings for FREE!   To get started, click on the Property Alert tab at the top of our web site and submit the required information so that we can email you our latest listings as well as those on the Binghamton MLS for FREE!  

Next review the details of each listing and then call us to schedule appointments for the properties you wish to see!   We make buying simple and want to keep you informed of our area’s newest listings and buyer information.

Now is a great time to buy and receive a $8000 Tax credit from your Federal government.  Here are the  provisions of the $8,000 Home Buyer Tax Credit at a glance:

The information on this page pertains to the American Recovery and Reinvestment Act of 2009.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

For more information - visit the website: www.federalhousingtaxcredit.com

Contact us to buy or sell your home and benefit from this wonderful incentive!

Before you begin looking at homes, start the mortgage application process.  Begin by finding out the exact fees a lender will charge you.  Fees will vary from Lender to Lender, so shop around for good service and save money. 

Talk to agents and find out which lender they recommend and why.  Ask the lender for a Good Faith Closing estimate and get a print out of the exact costs, the interest rate and closing fees.  Make sure the lender you choose pulls your credit report.  Do not just settle for a quick pre-qualification letter, obtain a full approval in advance to make the loan approval process go smoother. 

If you have questions about the process, find a lender that will answer your questions directly.  A good lender will take the time to explain the difference between the different types of loans available - FHA, Conventional, or VA.  The lender should also disclose all fees in advance and help you understand what kind of documentation is required to get your loan approved by his or her underwriter.  A bank appraisal is usually required and the appraiser may also require certain things to be fixed before your loan can be closed.

If you have a funny feeling about the lender, shop around until you find a lender you are comfortable with.  Lenders, like Realtors, are a dime a dozen, so shop around for courteous and responsive service.  Check out the lenders on our site by clicking on our Helpful Pros section.  If you don’t qualify through a normal lender, contact us for private mortgage financing.  We offer competitive rates to buyers with reasonable credit and a good rental history of paying on time.  

Do you have more questions?  Contact us and we will be glad to help you better understand the process.

Once you have found the property you wish to purchase, make sure you have an experienced agent or lawyer to help you with your offer.   Make sure your contract covers all aspects of your purchase such as items that remain, finance terms, downpayment amount, inspection contingencies, closing date, possession date and other terms that are material to your purchase.   A well written contract can save you a lot of headaches and misunderstandings.

More importantly, if you are competing with other buyers, you need to make sure your bid is submitted on time and reflects how high you wish to go.  Always stay within your financial limits and make sure you have carefully assessed the property’s condition, location, permitted use, taxes, utility budgets, value and property title.  There are a lot issues to consider, so if you are a first time buyer, we recommend you find a trustworthy buyer agent to represent you.  Find out how much experience the agent has and what service he or she will provide.  Make sure you know whose position he or she serves - yours, the sellers or their own.  Too many agents are concerned about commissions and may fail to represent you properly, so select your agent carefully.

When buying direct from an owner, make sure the service you use is legitimate and has integrity.  Discuss all the important issues and make sure you are comfortable with the process.  If you need help, contact us.

If you are looking to buy property, you should do so with a purpose in mind.  Decide whether you are looking for investment property, or a place to house your business or family.  Start by assessing your needs, then look into how much mortgage you can really afford.  Study each lender’s closing costs and make sure you are comfortable with the closing costs and the monthly mortgage payment.  Figure out if you will have enough money left over to continue to maintain your current lifestyle.  

Here are a few common mistakes made by buyers: 

Common Mistake # 1:   Many buyers end up spending more than their financial budget can really afford.  

Common Mistake # 2:    Many buyers fail to evaluate their actual needs and end buying a property that is unsuitable or unsustainable.  Think carefully about your real needs!

Common Mistake # 3:   Some properties require a lot of updating that often run into thousands of dollars to renovate.  Before you buy, have the property you are about to buy inspected and get a reliable contractor to give you estimates for repairs and upgrades before you submit your offer.  

If you need further advice with the buying process, click on the BUY tab at the top of this page and carefully study our buying tips.  Have a question?  Email us.

Broome County is finally facing the reality of the future of our local economy.  Like most communities, we are affected by rising taxes, high unemployment and a host of other dimful economic news.   Lockheed and other employers are expecting layoffs and Binghamton University has a hiring freeze.  Meanwhile, our state legislature continues to stall and add plenty of pork to the menu!

How will this affect our local housing market?  It’s already doing so!  Housing inventory has increased, prices are falling and the upper end of our our housing market is flat.  It’s truly a buyer’s market, but when will the good news return for homesellers?  It’s anybody’s guess, but my prediction is not soon enough.  We will probably be in a slump for many months.   The mortgage crisis and fluctuating stock market will continue to sort itself out.

Basic ecomomics teaches us that things go in cycles.  But the cycle of a strong housing market may be sometime to come.  We will need to reduce taxes, create jobs, clean up our streets and get the economy moving again.  Consumer confidence will have to increase.  What’s your opinion?  Seems like we are returning to the basics:  Shelter, Food, Health Insurance, Transportation, Utilities, Taxes and Education.  What’s left in people’s budget for cars, luxury items, jewelry and vacations?

Don’t worry, the grass is always greener elsewhere and with all the rain we are getting lately, one part of our economy is sure to grow - landscaping!  We must all work together if we expect to see brighter days ahead.