Posts Tagged ‘insurance’
Your Personal Decision to Buy
June 26th, 2009
To understand the rent vs. buy decision, analyze your personal situation. The first variable is your current rent. The decision to buy rests on the advantages accumulated beyond the term of your lease. You should estimate the annual rent increases that you will have to pay if you rent longer than one year. Then factor in your renter’s insurance. While renter’s insurance is on contents, this amount will offset some of the insurance that you will pay as a homeowner. Normally utility costs are not factored in unless you are in a unit where the landlord pays all or some of your utility bills.
When calculating the buy side of the decision, factor in the purchase price. You should calculate an appreciation rate for the property based on a percentage of the purchase price. This will have to be an estimate because it is a future event. Consider also the savings rate that your down payment would earn if you continued to rent and left this money in savings.
Estimate the number of years you expect to own the property. This figure will be personal. If you are starting your career or are in a job where you expect advancement, then it is likely that you will sell the property sooner than later. Typical reasons for selling include changes in marital status or family size, anticipated job transfer, and upward or downward employment growth.
Consider the yearly expenses in owning a home. You will need the interest rate and term of the mortgage, annual property taxes, and estimated annual maintenance. An older home will require more maintenance than a newer one. Finally, the loan expenses when you purchase, and homeowner’s insurance and selling costs when you finally liquidate the property are factored in.
To calculate the financial advantages of buying vs. renting, go to www.FinanCenter.com and click on Home Center.
To reach any of our experts on the rent vs. buy decision, contact a Prudential agent today at 573-449-6200 or email us at info@PrudentialVision.com.
Posted in Resolve to Get Your Home Documents Organized
April 9th, 2009
By Jim Jones – Prudential Vision Properties
As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.
Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.
Contracts and Legal Papers
Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.
Insurance Policies
Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.
Purchase and House Data
It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.