Thursday, July 19, 2018


RENT VS. OWING A HOME

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When comparing the cost of owning a home to renting, there is more than the difference in house payment against the rent currently being paid. It very well could be lower than the rent but when you consider the other benefits, owning could be much lower than renting.

Each mortgage payment has an amount that is used to pay down the principal which is building equity for the owner. Similarly, the home appreciates over time which also benefits the owner by increasing their equity.

There are additional expenses for owning a home that renters don't have like repairs and possibly, a homeowner's association. To get a clear picture, look at the following example of a $300,000 home with a 3.5% down payment on a 4.5%, 30-year mortgage.

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The total payment is $2,264 including principal, interest, property taxes, property and mortgage insurance. However, when you consider the monthly principal reduction, appreciation, maintenance and HOA, the net cost of housing is $1,218. It costs $1,282 more to rent at $2,500 a month than to own. In a year's time, it would cost $15,000 more to rent than to own which is more than the down payment and closing costs to buy the home.

With normal amortization and 3% annual appreciation, the $10,500 down payment in this example turns into $112,00 in equity in seven years. Check out your own numbers using the Rent vs. Own .

Contact  Brandi Cook or Vikki Crossland the Aiken HOMES Team at Meybohm Real Estate at  803-645-3325,  (803) 645-8008 or info@AikenHOMES.com  to help. 

Each family's situation is unique.  Owning a home makes sense and can be one of the best investments a person will ever make.

Wednesday, July 11, 2018

Carbon monoxide is a silent killer you don't want in your home but because it is colorless and odorless; you may not even be aware the deadly condition exists. The Center for Disease Control says more than 400 people in the U.S. die annually from carbon monoxide poisoning and over 10,000 require medical treatment each year.Carbon monoxide is a silent killer you don't want in your home but because it is colorless and odorless; you may not even be aware the deadly condition exists. The Center for Disease Control says more than 400 people in the U.S. die annually from carbon monoxide poisoning and over 10,000 require medical treatment each year.

Unmaintained furnaces, water heaters and appliances can produce the deadly gas. In addition, other sources could be leaking chimneys, unvented kerosene or gas space heaters or exhaust from cars or trucks operating in an attached garage.
The Environmental Protection Agency suggests the following to reduce exposure in the home:
  • Keep gas appliances properly adjusted
  • Install and use an exhaust fan vented to the outdoors over gas stoves
  • Open flues when fireplaces are in use
  • Do not idle car inside garage
  • Have a trained professional inspect, clean and tune-up central heating systems annually
Headaches, nausea, vomiting, dizziness and feelings of weakness or fatigue are a few of the most common symptoms. Lower levels of exposure to carbon monoxide may be mistaken for the flu.
Carbon monoxide alarms should be on every level of a home and especially, in sleeping areas. The alarms can be purchased for as little as $25 and plugged into the wall like a night light.
Regardless of the government requirements, no one would want to put their family, guests or themselves at risk for something so deadly.

Unmaintained furnaces, water heaters and appliances can produce the deadly gas. In addition, other sources could be leaking chimneys, unvented kerosene or gas space heaters or exhaust from cars or trucks operating in an attached garage.
The Environmental Protection Agency suggests the following to reduce exposure in the home:
  • Keep gas appliances properly adjusted
  • Install and use an exhaust fan vented to the outdoors over gas stoves
  • Open flues when fireplaces are in use
  • Do not idle car inside garage
  • Have a trained professional inspect, clean and tune-up central heating systems annually
Headaches, nausea, vomiting, dizziness and feelings of weakness or fatigue are a few of the most common symptoms. Lower levels of exposure to carbon monoxide may be mistaken for the flu.
Carbon monoxide alarms should be on every level of a home and especially, in sleeping areas. The alarms can be purchased for as little as $25 and plugged into the wall like a night light.
Regardless of the government requirements, no one would want to put their family, guests or themselves at risk for something so deadly.

Monday, April 23, 2018

The one experience that homeowners can agree upon after completing a remodeling project is that it costs more and takes longer than expected. It doesn't really matter that you researched, planned, and received multiple bids, it will, invariably, cost more and take longer than you originally anticipated.
Replacing floor covering or painting is a project that a homeowner can easily get bids and contract with the workmen directly. A new level of complexity occurs when the project involves more specialized contractors, like plumbers, electricians, carpenters, counters, and others.
Now, a homeowner is faced with dealing with one general contractor who will run roughshod over the sub-contractors or make the decision to do it themselves. Typically, you'll pay more for a general contractor, but the trade-off is that they have the contacts and experience to make things go smoothly.
Subs are notorious for wanting to finish their "part" of the project and move onto to the next job. Sometimes, they're not interested in the "big picture" enough to consider doing things in a way that are best for the overall outcome.
When you start tearing out some things, you find out that there may be unexpected expenses involved. Another common occurrence is that during the project, you get a new thought about changing something else "since it is already torn up anyway." This will add time and money to the job.
There can be the situation that the homeowner doesn't even know the right questions to ask or what to consider when trying to coordinate the different workers. The most detailed timetable can be thrown off track if one set of workers don't show up or finish on time. At best, it delays the project for a few days. At worst, it can delay it for a few weeks because the individual workers may have committed to other jobs that don't allow them to reschedule.
Once the work is done in a professional manner, you're probably going to live with it for years. If it is something you've wanted to do and it will allow you to enjoy your home more, it is worth doing. Just be patient and enter this adventure with the understanding that it will cost more and take longer than you expect.

Tuesday, April 17, 2018

A couple is planning to tour the United States in a travel trailer during their first few years of retirement. They are going to sell their current home now and purchase another home when they finish their travels.  
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An interesting exercise is to determine the optimum time of selling the home: now or when they're ready to buy their replacement home.
If they intend on traveling for more than three years, then, it may be a good decision to sell prior to the sojourn to avoid paying taxes on the gain in their home. IRS allows for a temporary rental of a principal residence while still keeping the $250,000/$500,000 capital gains exclusion intact. A homeowner must own and use a home for three out of the previous five years which means that it could be rented for up to three years, but it would need to be sold and closed before that three-year window expires.
If the travel will be less than three years, there is an option of selling now or later. Using the example below, the homeowner sold the home, paid their expenses and invested the proceeds in a three-year certificate of deposit until the replacement home was purchased.

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As an alternative, if the homeowner rented the home, not only would they have income, the home would continue to appreciate and the unpaid balance would go down resulting in larger net proceeds. Based on a 5% appreciation and continued amortization of the mortgage, the net proceeds could easily be $40,000 more.

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Obviously, there are a lot of considerations that affect the decision to sell now or later but in an appreciating real estate environment, being without a home for several years could affect the financial position of the owner in the replacement property. It is certainly reasonable to look at various alternatives before making a decision since each area is unique. 

Call Vikki Crossland and Brandi  Cook, The Aiken HOMES Team at Meybohm Real Estate at 803-645-8008 or 803-645-3325 to discuss your specific real estate goals and  always consult your tax professional.

Monday, April 9, 2018

"How long do we have to wait to qualify for another mortgage" is the question concerning people who've had a foreclosure, short sale or bankruptcy. The loan types for the new loan will differ in amounts of time to heal credit scores based on the event.43296989-250.jpg
The following chart is meant to be a general guide for how long a person might have to wait. During this waiting period, it's important that the person be current on all payments and maintains a history of good credit.
A recommended lender can give you specific information regarding your individual situation and can make suggestions that will improve your ability to qualify for a mortgage. This process should be started before looking at homes because of the time constraints listed here can vary based on current requirements and possible extenuating circumstances of your case.
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We want to be your personal source of real estate information and we're committed to helping from purchase to sale and all the years in between. Call Vikki at (803) 645-8008 or Brandi at 803-645-3325 for lender recommendations.

Monday, April 2, 2018


An Aiken Tradition...

Hopelands Garden Concert Series-2018

Vikki and Brandi of the Aiken HOMES Team
of Meybohm Real Estate are the sponsors
for the opening night event on April 2nd.

Kenny George Band starting at 6:30 pm.



This is a "local’s" favorite event and weather is perfect!

The highly anticipated Hopelands Concert Series returns this April, May, and June. The first concert features The Kenny George Band, who will kick off Masters Week in Aiken with a performance in Hopelands Gardens on Monday, April 2nd at 6:30 pm. Guests are encouraged to bring a lawn chair and picnic dinner to enjoy the show. Admission is free. 

Event parking is located across the street from Hopelands Gardens at the Green Boundary Club, 780 Whiskey Road. Handicap parking is available at Rye Patch on Berrie Road and Hopelands Gardens on Dupree Place. 

For more information, please call 803-642-7631 or visitwww.cityofaikensc.gov or www.facebook.com/ExperienceAiken. Please call the rain-out hotline at 803-643-4661 for more information in the event of inclement weather.