by JONATHAN BODEEN | Sep 23, 2014 | Bodeen Team Blog, Buying a Home, Real Estate News, Relocation
The choice to buy or rent has always been a difficult one, and the answer is not always the same for everybody.
In the beginning, buying a home IS more expensive than
renting. You need money for a down payment, closing costs, and
maybe even some new furniture!
But in the end, buying your home and holding onto it for the
long haul is almost ALWAYS the smarter financial move. Why
you ask?
1. The cost of your mortgage will remain fairly consistent even as
prices around you move up and up due to inflation and other
reasons. So even if your monthly payment is more in the first few
years, eventually you will actually be paying less than those
who are renting around you!
2. After paying a mortgage for 30 years, what you have is an asset
worth hundreds of thousands of dollars and no more mortgage
to pay! After 30 years of renting what do you have? Uhh… more
rent to pay.
Buying a home can be a scary thing, and don’t be deceived; it is
not something that should be done casually. It does require
planning and a personal assessment of your budget vs. the costs.
I do personally believe however, that it is something that every
reasonable individual or family should work and plan towards.
The first step is always to figure out where you stand financially
and what you can afford. The best way to do that is to speak with
an experienced loan professional. You may be surprised what is
out there in your budget! For example, if you’re paying $1000 a
month in rent, that translates to the monthly cost of a
$150-160,000 home, given today’s interest rate.
Give me a call and I can put you in touch with an experienced
loan professional that can analyze your options at no cost or
obligation. Even if you find you’re not quite ready to buy, at least
you will have a place to start and can begin planning for the
future.
The longer you wait in life to buy your first home, the longer it will
be before you can stop paying rent or a mortgage forever!
![HOAs… Love Em or Hate Em? (Part 2)]()
by MICHAEL BODEEN | Sep 22, 2014 | Bodeen Team Blog, Buying a Home, Real Estate News
(Last week we discussed the “Benefits of an HOA!” This week we’ll look at some negatives)
(Click here for Part 1)
HOA’s Run Amok!
“Gestapo Tactics!” is the term I’ve heard more than once when homeowners are venting about their HOA.
An overzealous HOA can be a royal pain to homeowners. Usually after one or more written warnings, a property owner may receive a formal complaint and directive to fix an HOA rules violation. If not fixed within that certain period of time, or after numerous warnings, a fine is assessed. When this happens the homeowner-HOA relationship heads downhill in a hurry, usually to crash and burn. And, in some cases we’ve heard that HOA’s have the authority to foreclose on a property after non-payment of fines following due process.
Often the cause for the HOA violation has to do with tenants in the home, who may or may not be aware, or who may or may not care that their car was left parked on the street overnight. In some communities, hired staff drive the hood and take photos of violations to present to the homeowner. This one enforcement detail, which is usually necessary to make a charge stick, often ticks off an owner or renter more than anything else. It’s akin to getting the photo enforcement mug shot from the City of Scottsdale in the mail.
Another cause for upset homeowners is their perception (often correct) that the HOA is being unreasonable when they turn down a homeowner request for adding or changing something to the exterior of the house. When a buyer asks us if they can “do a certain thing, or make a certain change,” our immediate comeback is that it’s up to the community rules and regs (or Design) committee – and sometimes what side of the bed they got out of that morning.
And sometimes you can be torpedoed by a neighbor. I spoke with a client recently who had called me to see if I had the number of a good HOA attorney. His next door neighbor in North Scottsdale was taking issue with his backyard new pool and landscape project and was making a fuss to the HOA which ended up delaying the project many months, missing the swim season. Fortunately he has recently gotten this resolved, but it was a real headache for him and his wife.
Don’t like the way your community is being run? Well, you can make your voice heard at a monthly HOA meeting, and you can even run for a position on the HOA board. Warning though, this position is not for the faint of heart.
I definitely touched on a nerve for some of you last week. One of my clients replied back with the following (this is a partial excerpt of what he wrote):
“HOA’s, I don’t like them!”
“They become power hungry controllers run by people who have nothing better to do and butt into everyone’s business. If I had it to do all over again I would find a neighborhood without one.
All the items you mention as unkept yards, cars on jacks can dealt with utilizing existing city codes. Yes they become like a mini Gestapo – personal experience.
Garage inspections to see if you have room to park, rigged elections, legal threats, fines, etc.”
(Next week we’ll discuss purchase contract issues that can save you hundreds of dollars, just by understanding what the purchase contract addendum states)
by JONATHAN BODEEN | May 14, 2014 | Buying a Home
This blog post has no image set. Lorem ipsum dolor sit amet, consectetur adipisicing elit. Hic, assumenda, repudiandae, temporibus, ex aspernatur quos ipsum praesentium voluptate beatae maxime iure tempore nihil maiores alias id quia quae. Odit, officia, odio unde totam reprehenderit necessitatibus! Ut, possimus, iste et in adipisci ipsum quisquam totam quia porro numquam explicabo quae fuga at alias vel laboriosam natus labore iure facere voluptatibus dignissimos modi repellendus maxime dolorem vitae vero nesciunt similique odio rem minus quis itaque quas tenetur exercitationem qui beatae provident! Cupiditate, reiciendis quis fugiat blanditiis provident? Error, odio, quas praesentium amet modi voluptas fugiat dignissimos nesciunt. Velit, quaerat, quasi incidunt ratione deleniti itaque nam blanditiis voluptatem voluptate quam vitae quod magni dolor quibusdam pariatur. Libero, consectetur, aut recusandae quas neque illo facere temporibus modi porro cumque quis incidunt a voluptatibus ea exercitationem voluptas asperiores nulla accusamus nesciunt animi iure laboriosam error vitae illum praesentium. Id, dolorum culpa aut ab sit quas sint officiis fuga quaerat sequi possimus dicta adipisci architecto beatae odit labore similique sapiente rem reprehenderit nobis minus vel ducimus placeat harum officia. Illo, harum, consectetur, nostrum animi modi culpa commodi perferendis aut optio at suscipit aliquam sunt odit ut iure facilis magnam natus facere temporibus vero laudantium distinctio saepe magni reiciendis ipsa? Aspernatur, quidem, quis eius vitae temporibus natus rerum minus veniam reiciendis. Incidunt, assumenda totam dicta neque laboriosam! Nemo, ex a odio iste.
