BUY OR WAIT? Check The Answer That’s Right For You | Wilmington NC real estate

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www.WilmingtonNC-realestate.com

There’s no right or wrong answer when you ask: “Is it the right time to buy a home?” For some, it’s a great time to buy—while for others, the answer is not as clear cut. There are lots of check marks that make buying favorable, but some unknowns as well. We’re here to help you sort out the right answer for you.

Today’s real estate market is affordable for many. Interest rates are still near historic lows, which means your money buys more home than it will when rates rise. With stable employment, a decent down payment and a good credit history, you’re likely to qualify for a mortgage.

The selection of homes available locally is improving because the overall economy has encouraged more owners to sell. Because of this, your odds of finding the right home for you are higher today. Also, homebuyers now have many financing options because lenders offer a variety of loan programs that allow buyers to choose their mortgage term and interest rate to ensure the loan is affordable today—and tomorrow.

Should you buy a home today?
There are many reasons why it might be a good time for you, personally, to buy real estate today. How many reasons can you check off?

☑ I need a tax break.
Paying mortgage interest and real estate taxes may provide you with a sizable deduction on your income taxes. Consult a financial professional to review your tax return and see the impact owning a home (or a larger home) could have on your tax bill.

☑ My household income is likely to grow.
Up for a raise in the not-too-distant future? In line for a promotion? If your career—or your partner’s career—is on an upward trajectory, your growing income will offset any increases in real estate taxes, insurance or interest rate down the road.

☑ I’m ready to put down some roots.
You may feel ready to sink deeper roots in one location and become more vested in our community. If you’re looking to call our area home for five years or more, it may make sense to buy a home or move up to a larger one.

☑ I have been saving for a rainy day.
If you’ve been stashing away money for a down payment for some time, consult a mortgage lender to determine how much home you can comfortably afford to buy (ask us for lender recommendations). Calculate if your savings cushion is enough to cover unexpected maintenance costs or other emergencies after the down payment is paid.

☑ I need a home that will grow with my family.
If the home you can afford today has enough bedrooms to accommodate future children, children who are returning home, elderly family members or a work-at-home situation, it may be the right time for you to buy.

☑ I’ll be receiving some money.
If you are receiving a large legal settlement or a family member has presented you or your partner with a sizable monetary gift or inheritance, you might be able to buy that home you’ve only dreamed of before now.

☑ I follow a budget.
With your finances in order and personal spending in check, you likely have a realistic budget to know how much you can safely spend on housing.

☑ My debt situation is under control.
If you had student loans and they’re nearly paid off, college-age kids that are close to graduation or credit card debt that is near a zero balance, it might be time for you to think about buying a home.

☑ I’m just ready.
If you’re ready to buy a home, it’s time to contact us. We can show you local homes that fit your finances and your family. We can work with you to determine which one meets your needs best. We look forward to hearing from you soon!

Categories: Buy Now or Wait, Wilmington NC homes, Wilmington NC Market Statistics, wilmington nc real estate, Wrightsville Beach NC

Do You Know How You Can Profit Using “OPM” and Leverage?

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Home ownership remains an important investment for most people, thanks in large part to the use of OPM (“Other People’s Money”) to gain “leverage.” Here’s how leverage works.

  • Assume that a family bought a home five years ago for $80,000. They put up 20% of the purchase price ($16,000) and borrowed the 80% ($64,000) balance. Now, they manage to sell the house for $120,000. Their relatively small cash investment has reaped the benefit of the increase in value of the entire property. The $16,000 cash investment has resulted in a profit of $40,000.
  • Compare this with an investment in common stocks. Federal regulations require that an investor put up at least 50% in cash. Therefore, the leverage is not as high as for the home buyer. If the investor put up $40,000 to buy $80,000 in securities and sold the stocks five years later for $120,000, the return would have been less substantial.
  • Taxes, selling costs and other factors would change these figures in the “real” world, but the principle of leverage would remain the same. If you want to increase the return on your home investment as much as possible, let OPM go to work for you.

If you want to increase the value of your house hunting time and energy, let us go to work for you. We can help steer you through the complexities of contracting, financing and closing.

Visit www.cbbaker.com for more information.

Categories: OPM, Uncategorized

PLAY SMART: Savvy Tips On Buying A Vacation Home

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Great Reasons To Buy A Vacation Home

Figure Eight Island

Figure Eight Island

They provide another investment that includes a mortgage-interest tax deduction.

We’ve all thought about it while lying on the beach or inhaling the fresh mountain air: “Why don’t we buy a vacation home?” Owning a vacation home can be a good decision if you buy smart.

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

Call us 910.202.3607 or kaybakerassociates@ec.rr.com or www.cbbaker.com

Categories: Buying a Vacation Home, Uncategorized, wilmington nc, wilmington nc real estate, wilmington real estate stats, Wrightsville Beach NC

69th NC Azalea Festival Wilmington NC 2016 | Get Your Party Hat On.

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69th NC Azalea Festival Wilmington NC 2016 | Wilmington NC real estate

 

 Join us for the 69th NC Azalea Festival in Wilmington NC. April 6 – 10 .

 

 

“The North Carolina Azalea Festival is Wilmington’s annual community celebration and the largest festival of its kind in the state. Founded in 1948, the Azalea Festival has emerged as Wilmington’s premier event.

Each April, a full week of natural beauty, big-name entertainment, festive galas, fun family events and Southern hospitality come together to showcase the charms of the Wilmington area. For community pride and springtime pageantry, the North Carolina Azalea Festival has no equal!

The Festival’s concerts, fairs and special events are viewed by more than one million people each year, in person and through media coverage. More than 200,000 are estimated to attend the annual two-day street fair, while more than 100,000 gather to watch the Festival parade. Each event is a celebration, beginning with the traditional arrival of Queen Azalea at the official opening of the five-day event. Stars glitter throughout town as Southern belles and their escorts promenade through lush gardens at the annual garden party. Everywhere the blooming azaleas offer colorful testimony to the rich heritage of coastal Carolina.”

Here is a sampling of the schedule for this years festival from the festival website.

  • Azalea 5K/10K/Kid’s Run

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    2APR2016
    The North Carolina Azalea Festival 5K/10K & 1 mile-Kid’s Run is an annual event hosted by the Cape Fear Volunteer Center. Kids, dogs, and costumes are welcome! All proceeds from …

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  • Azalea Sweep

    2APR2016
    The Azalea Sweep is an event that takes place a week or two prior to the Azalea Festival. Officers, committee members, and volunteers get together and clean various places where …

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  • Queen’s Coronation

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    6APR2016
    The Queen’s Coronation is an annual event where the Queen is officially crowned the North Carolina Azalea Festival Queen Azalea. In attendance are the Festival Celebrity Guests as well as: City …

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  • Brigade Boys & Girls Club Community Visit

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    7APR2016
    Each year the Azalea Festival Queen Azalea, Celebrities, and Official Party visit a community organization to help spread the Festival spirit.  We were proud to visit the Brigade Boys & …

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  • Celebrity Reception

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    7APR2016
    The Celebrity Reception provides sponsors of the Festival a close and personal opportunity to see and meet Queen Azalea, Celebrity Guests, and other Festival Dignitaries.  A relaxing luncheon on sprawling …

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  • School Visit

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    7APR2016
    Each year the Azalea Festival Queen Azalea, Celebrities, and Official Party visit a local school to share the Festival spirit.  The school works year-long to prepare a program and showcase …

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  • The Avett Brothers

    7APR2016
    When you’re receptive to the forces around you, you’ll notice there’s something powerful in the air. It’s that feeling of inspiration to which The Avett Brothers consistently remain open.” It’s a spirit …

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  • After Garden Get Down

    8APR2016
    The After Garden Get Down at Bluewater Grill is a fun, dockside party on Friday, March 8th from 2-5 PM, immediately following the Airlie Luncheon Garden Party.  Guests enjoy live music by Darryl …

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  • Airlie Luncheon Garden Party

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    8APR2016
    The premier event in Wilmington, the Airlie Luncheon Garden Party is one you can’t miss! Join us and 2,500 of our closest friends as we kick off Spring with big …

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  • Cape Fear Garden Club Azalea Garden Tour

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    8-10APR2016
    The Cape Fear Garden Club Azalea Garden Tour © is sponsored by the Cape Fear Garden Club, Inc. The tour has been featured in SOUTHERN LIVING and is one of …

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  • City RockFest Tour

    8APR2016
    Join us for the City RockFest Tour 2016 with Seventh Day Slumber, Decyfer Down, Childen 18:3, Spoken, & Disciple, presented by: McDonalds, McAnderson’s Inc. and the North Carolina Azalea Festival.Read More…

  • Juried Art Show

    8-10APR2016
    Over 100 North Carolina artists and national artists present fine paintings at the Annual Juried Spring Art Show and Sale.  The Art Show is a long-standing tradition of the North …

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  • Snoop Dogg with Doug E. Fresh

    8APR2016
    Multi-platinum artist, actor and entertainment icon Snoop Dogg is at the forefront of popular culture with award-winning albums and songs, multiple films, lifestyle products, philanthropic efforts, and digital ventures, including …

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  • Street Fair

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    8-10APR2016
    The North Carolina Azalea Festival Street Fair Presented by Wells Fargo is a free, family event with over 330 arts and craft vendors, 40 food vendors, 2 stages, a Children’s …

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  • USCGC Diligence Tours

    8-10APR2016
    Tour times are: Friday from 12:30 PM  – 15 minutes before sunset Saturday/Sunday from 10:00 AM  – 15 minutes before sunsetRead More…

  • Boxing

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    9-10APR2016
    The North Carolina Azalea Festival Boxing Tournament showcases some of the finest boxers from the National and International level of competition & from the military branches. Queen Azalea & VIP …

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  • Chase Rice with Kane Brown

    9APR2016
          Chase Rice When he takes the stage to perform, Chase Rice pulls no punches. “You’re gonna be mine and I’m gonna be yours for an hour and …

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  • Coin Show

    9-10APR2016
    A fun filled family event! Children are given free foreign coins to learn about currency and foreign countries. More than 30 dealers from several surrounding states are on hand to …

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  • Fireworks

    9APR2016
    A favorite Festival event, the fireworks are presented over the majestic Cape Fear River. Come early to pick out your best viewing spot!Read More…

  • Historic Home Tour

    9-10APR2016
    The North Carolina Azalea Festival Home Tour is an annual event held by the Historic Wilmington Foundation. Proceeds from the Home Tour will advance the Historic Wilmington Foundation’s efforts to …

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  • MGC Parade Mile

    9APR2016
    Welcome to the MGC Parade mile. Local law firm McAngus Goudelock & Courie is teaming with Go Time and the North Carolina Azalea Festival to put on a one of …

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  • Parade

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    9APR2016
    The Azalea Festival Parade continues to be one of Southeastern North Carolina’s largest annual event, with over 100,000 viewers each year. Our traditional parade route flows right through the heart …

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  • Patrons’ Party Gala

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    9APR2016
    The Patrons’ Party Gala is the grand finale for sponsors of the Azalea Festival.  A black-tie event filled with wonderful food displays and dancing to the sounds of the hottest …

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  • Street Fair Children’s Area

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    9-10APR2016
    The Street Fair Children’s Area is family fun for everyone! Games, children’s craft projects, and a stage dedicated to children’s performances all await you at the Cotton Exchange.   Saturday …

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  • Street Fair Multicultural Stage

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    9APR2016
    We invite the public to join us for a unique, family-friendly multicultural experience on Saturday and Sunday, April 9th and 10th. The kick-off of the multicultural festivities goes global beginning …

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  • USS North Carolina Battleship 75th Anniversary Celebration

    9APR2016
    Join us and our “living history crew” – active Marines in WWII attire bringing the Battleship to life on Saturday, April 9th! At 1:15 PM, there will be a Special …

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  • Festival Finale

    10APR2016
    Bluewater Grill is kicking off their Waterfront Music Series by hosting the Festival Finale on Sunday, April 10th, the last event of the North Carolina Azalea Festival. Back of the Boat will provide …

    Read More…

From Last Years Festival

azalea

While you are in town, please visit our mobile site mobile.cbbaker.com to view our fabulous real estate offerings.  Or online www.cbbaker.com

Categories: 65th Azalea Festival, 67th Azalea Festival, azalea festival, Wilmington NC homes, wilmington real estate stats

FSBO INCENTIVES: 12 Contract Options That Entice Buyers | Wilmington NC real estate

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Wrightsville Beach NC www.cbbaker.com If you’re selling in today’s Wilmington NC real estate  market, you want to make your house outshine the competition. Buyers are most likely to choose your house if it offers something special. Here are 12 ways to make sure you land a “Sale, Sweet Sale.”  # www.wilmingtonnc-realestate.com

 A Spoonful Of Sugar

1. Offer a warranty.

Purchase a buyer’s home warranty to protect against future problems.

2. Help with closing costs.

Cash-poor buyers concerned more with out-of-pocket costs than monthly payments will especially appreciate this one.

3. Consider financing help.

Provide seller financing or buy down the buyer’s mortgage rate for the first year.

4. Help with utilities.

Pay some or all estimated utilities for 6 or 12 months.

5. Help with fees.

Pay a year’s condominium or homeowners association fees.

6. Pre-pay memberships.

Buy a one-year pool or community golf club membership, cable TV subscription, or other recreational activity.

7. Consider a moving allowance.

Pay the buyer’s documented moving expenses, or provide an allowance toward moving costs.

8. Treat them to window treatments.

Offer redecorating cash for new carpet or drapes.

9. Mow down any objections.

Buy a lawn-maintenance service for a year, or offer a riding mower if the lot is large.

10. Give them a dock on the bay.

If you live in a waterfront community, offer to rent a boat slip for a year.

11. Reimburse buyer the cost of points.

{short description of image} This is often a double benefit for buyers, who save both on the points themselves and on their federal taxes. The IRS now allows buyers to deduct the cost of seller-paid points as a Schedule A mortgage expense.

12. Price your home below comparable properties.

Prove your home’s good value by having an appraisal done and setting the price below the appraised amount.

Call on us for more ideas of ways to make your home the sweetest one on the market. We’ll create a customized marketing program to help get your home sold in any market!

Let us know if we can help.  www.cbbaker.com

Categories: FSBO 101, Sell your home, volunteer in wilmington NC, Waterfront Wilmington NC, waterfront wrightsville beach, wilmington nc real estate, wilmington real estate stats

Soothing Medicine for your CONSCIENCE | Volunteer Wilmington NC Conscience Fairs 2016 | Wilmington NC real estate

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StarnewsMedia is hosting the 2016 Conscience Fair this year  10 a.m. to 2 p.m. Saturday, Jan. 23, in Cape Fear Community College’s Schwartz Center, 601 N. Front St.  If you have not selected a New Years resolution, you may  find one here at the fair.  Over 100 Non- Profits will be there with a whole list of needs.  A great time to scratch that “Volunteer” itch you have been having.  Wilmington NC is an awesome city and it is mainly because of it’s great people and giving attitude.  Join in, you will not be sorry.

More to follow on how to sign your non-profit up for the fair.

The following nonprofits have signed up for booths so far.

Coastal Enterprises of Wilmington; Don Hoover; (910) 763-3424; d.hoover@bizec.rr.comUnited Way of the Cape Fear Area;

Tommy Taylor; 9107983900; tommy.taylor@uwcfa.orgStep Up for Soldiers; Tom Russell; 910-297-4981;tom@stepupforsoldiers.org

Cape Fear Regional Community Development Corporation; Janiel Blackman; 910-762-7555; info@cfrcdc.orgNAACP Parents’ Council of New Hanover County; George Vlasits; 910-465-8871; gvlasits@gmail.com

The Bridge; Mary Ellen Bowman; 9105239687; cwjchope@gmail.comNew Hanover Regional Medical Center; Eileen McConville; 910.667.5317; Eileen.mcconville@nhrmc.org

Paws Place Dog Rescue; Peggy Durso; 330-416-4748; peggy@pawsplace.org

New Hanover County Community Emergency Response Team (CERT); Kristen Skinner; 910-798-6905; kskinner@nhcgov.com

Wilmington Area Rebuilding Ministry, Inc. (WARM); Melanie James; 910.399.7563; info@warmnc.org

Easter Seals UCP; Pat Watson; 910-790-5921 Ext. 8337; patricia.watson@eastersealsucp.com

Gifted in Rhythm & Life (GiRL); Cassandra McNeil ; 202-421-2645; cassandra.wearegrl@gmail.com

Quality Enhancement for Nonprofit Organizations; Natasha Davis; 910-962-2878; davisn@uncw.edu

Cameron Art Museum; Pam Palmer; 910-395-5999 x 1012; ppalmer@cameronartmuseum.org

Airlie Gardens; Flo Berry; 910-798-7566; fberry@nhcgov.com

Road to Recovery-Relay For Life; Yona Bar-Zeev; 9106865191; barzeevy@gmail.com

Sunrise Express Benefit Group ; Peter Morreale; 9102977868; Peter@sunriseexpress.org Animal Avengers; Jennifer Witkowski; 8472049458; jenniferwitkowski@gmail.com

New Hanover County Board of Elections; Jenna Dahlgren; 910 798 7330; jdahlgren@nhcgov.com

North Carolina Coastal Federation; Rebecca Peter; 910-509-2838; rebeccap@nccoast.org

Sunrise Express Benefit Group; Peter Morreale; 910-297-7868; peter@sunriseexpress.org

Pets for Vets – Cape Fear NC; Peggy Jones; 910-470-6337; capefear-nc@petsforvets.com

North Carolina Sorosis; Debbie Sheehan, President; (910)395-2176 or (910)612-0696; dwsheehan@hotmail.com

Wilmington Prostate Cancer Support Group, Us TOO; George W Gardner; 9107929953; wproscasupportgp@aol.com

CAT Adoption Team; Julie Wheeler; 910-228-0163; jwheeler1@ec.rr.com

Team First Book; Carol Barre; 910-200-1441; cbarre1250@ec.rr.com

The Carousel Center, Inc.; Laurene Avery; 910-254-9898; Vista@carouselcenter.org

Cape Fear Habitat For Humanity; Tim Synan, Volunteer Coordinator; 910-762-4744 x105; tim@capefearhabitat.org

Diaper Bank of North Carolina Lower Cape Fear; Leigh Robertson; 910-232-2824; mleighrobertson@gmail.com

Cape Fear Parrot Sanctuary; Ces Erdman; 910-471-2186; cesnc1978@hotmail.com

The Matthew 25 Center; Paula Schwefel; 9102597133; matthew25@bizec.rr.comAARP NC; Suzanne LaFollette-Black; 919-274-2598; Sblack@aarp.org

Cape Fear Museum of History and Science; Kitty Yerkes; 910.798.4372; kyerkes@nhcgov.com

Journey4Josh; Patty Proutey; 910-442-7721; Journey4josh@gmail.com

Kids Making It; Kim Boyce; 910-262-3452; kim@kidsmakingit.org

Canines for Service; Christy Borst; 910-362-8181; cborst@caninesforservice.org or information@caninesforservice.org

NourishNC, Inc.; Kathryn Thomas; 910-465-0995; kthomas5745@gmail.com

The Warrior Ride; Carolyn Scott ; 910 278 9919 ;…

More to come.  Now is your chance to make a difference.

www.cbbaker.com for all your Wilmington NC real estate needs.

 

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Categories: Concience Fair 2016, Volunteer in Wilmington 2016, wilmington nc weekly events

GOING TINY Want To Live In A Small Home? Financing Can Be A Big Challenge

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tinyFans of the “Tiny House Movement” have long dreamed of ditching most of their extra rooms, couches, bookshelves and tables and moving into a tiny home. Maybe you’ve thought about it…or know someone who has. This vision of the ultimate downsize is about living simply in a small home—often with around 500 square feet of living space.

But living the simple life can get complicated if you need to take out a mortgage loan to finance the purchase of a tiny home. Tiny homes are small, but they’re not free. They might cost $50,000 or more to buy, withTheTinyLife.com blog saying that the average cost to build a tiny house is $46,000 nationwide when they are built by professional builders (land additional).

Here’s the rub. Some banks won’t originate mortgage loans for $50,000 or less. These lenders simply won’t make enough money on such small loans to make originating one worth their time.

What to do if you’re ready to join the tiny-house movement? Here are three financing options.

Home Equity Loan: If you’re building a tiny home as the occasional retreat from your primary home, you might be able to take out a home equity loan to finance the purchase of your tiny second home.

To do this, of course, you’ll need a primary home, and you’ll need to have equity in that home. Say you owe $126,000 on your mortgage loan and your primary home is worth $220,000. You have $94,000 worth of equity in your primary residence ($220,000–$126,000 = $94,000). Lenders will lend you a certain percentage of that equity—it varies by financial institution—that you can then use to pay for your tiny home. For instance, your lender might, if you have equity of $94,000, approve you for a home equity loan of $50,000—leaving $44,000 home equity or loan-to-value of 80% ($126,000 + $50,000 V $220,000 = 80% LTV).

Recreational Vehicle Loan: If you don’t already own a home and if you want your tiny home to be your only residence—and not just a cozy vacation home—then you’ll have to go another route. You might turn to an RV loan to finance your tiny home.

To do this, you must first make sure that your tiny home actually qualifies as an RV (recreational vehicle). Usually, this means that your tiny home is mobile. It also means that your tiny home must be certified as an RV by the Recreation Vehicle Industry Association.

The good news? The makers of tiny homes are increasingly certifying their homes as RVs to make it easier for consumers to finance the purchase.

Unsecured Loan: A final option is to turn to an unsecured personal loan as a way to finance a tiny home.

As its name suggests, an unsecured loan is one in which a property is not used as collateral. That’s the big difference between an unsecured loan and a standard mortgage loan. The home you are financing is used as collateral in a mortgage loan. If you miss enough mortgage payments, your lender can take possession of your home.

In an unsecured loan, lenders don’t have that opportunity. Because of this, these loans are riskier for financial institutions. Often, banks and lenders will charge higher interest rates on such loans because of this.

To qualify for an unsecured loan, you’ll need many of the same positive financial attributes that you’d bring to a lender when applying for a traditional mortgage loan: a high credit score, low debts and steady stream of monthly income. Whatever your plans, call us first. We’ll help you determine exactly what you can afford before you sign anything.

Categories: Financing for Tiny Homes, Tiny Homes, Uncategorized

MOVE UP: 4 Smart Strategies For Purchasing Your Next Home

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kingarthur3If you’ve decided it’s time to move up to a bigger home, a better home or a home in a more coveted area, your next challenge will be getting there financially. It’s likely you’ll need more cash, a larger income and, perhaps, better credit than you had when you purchased your current home. Putting all the pieces in place for the move up could take some time and detailed planning. Here are some ideas when buying Wilmington NC real estate.

1. Credit Clean-Up

Although your credit rating may have been sterling as a first-time home buyer, years of credit-card and utility accounts, car payments and consumer loans may have scuffed up that financial image a bit. Late or missed payments have a negative effect on your credit profile, as do large, long-term balances on your accounts. Your credit score, a rating system many lenders use to evaluate your financial situation, may prevent you from borrowing as much as you’d like for your next home or getting the lowest interest rate currently available.

The wise move-up buyer will take stock of his or her credit standing and debt status well before attempting the next home purchase. You may need some time to reduce your debt, catch up on any delinquent accounts, remove inaccuracies and blemishes from credit reports and make other adjustments to increase your credit score.

2. Loan Shopping

A quick way to sift through these issues is to contact a lender who can pull a credit report to see if there are any glaring spots on your record. If nothing needs immediate attention, you can continue on with a complete application, providing the financial information needed for loan pre-approval. The loan officer will determine the maximum loan amount you qualify for based on your income and debt profile.

You may want to shop around at this point, comparing loan programs and interest rates. Consider how well your current loan has worked for you and remember that rates aren’t everything. The lowest rate may be accompanied by high points. If so, you’ll have to keep the mortgage long enough to justify paying the steep up-front cost of the loan.

Consider whether a non-traditional mortgage program could meet your needs. An adjustable-rate mortgage may be a good choice if it looks as though interest rates will be falling. A 40-year mortgage might reduce the monthly payment enough so you qualify for a larger loan.

3. Collecting Cash

An important factor in the equation that determines your buying power will be how much cash you have for a down payment and closing costs. The best mortgage interest rates are available to buyers with down payments of 20% or more. If you make a smaller down payment, you may have to take a higher interest rate or pay for private mortgage insurance, both of which will reduce your buying power.

Unless you’re a prodigious saver, chances are the equity you have in your current home will provide the largest source of cash for your next home purchase. Equity, of course, is the difference between the market value of the home and the balance on any mortgages secured by the home.

We would be happy to conduct a comparative analysis of your home to determine the right sales price — at no obligation to you, of course. By determining the value of your home and subtracting out selling costs (paying off the old mortgage, marketing fees and settlement expenses), you’ll have the basis for a down payment on your move-up property.

4. Fine Tuning

After taking stock of your financial situation, you may find it necessary to delay your move in order to get the type of home you’ve targeted. Perhaps you need to save more cash for down payment and settlement costs. You may need to pay down outstanding debts to improve your credit score and qualify for a larger mortgage or a lower interest rate. Remember, it’s likely your home’s value and your equity in it will continue to grow as you get yourself in a position to move up successfully.

Categories: Move Up Homes, Waterfront Wilmington NC, waterfront wrightsville beach, wilmington nc real estate, wilmington nc relocation

KEY TO SUCCESS | How To Choose Your Rental Property Tenants Wisely

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whitneyHow do you find responsible tenants who pay their rent on time, take care of your property, get on well with the neighbors and stay as long as you want them to?

Recruiting: Ask around to find potential tenants looking for a rental or advertise your property online to find them. Two proven ways to find good tenants is through tenant referrals or a reputable management service, which can advertise your property, efficiently screen applicants and refer people to you for a fee.

PERFECT RENTALSSuccess as a landlord starts with having the right rental property—one that appeals to renters, minimizes your costs, maximizes your income and is likely to appreciate in value while you own it. Wise investments start with the following tips:

1. Location. Be sure the property is in a location where rental demand is high (e.g., near public transportation, employment centers, etc.). Check vacancy rates and how long properties stay on the rental market.2. Property. Buy the type of property that is most desired by renters. In some areas, condos, townhouses or multi-family units may be easier to rent than single-family homes. In other areas, the reverse may be true.

3. Condition. Choose a property in good shape and easy to maintain. Excessive repair and maintenance expenses can seriously impact the profitability of your investment.

4. Demand. Find out what is predicted for the area’s rental market in years to come. Learn what plans are underway to change the neighborhood (e.g., road construction, industrial development, etc.) that might affect the value of or demand for your investment.

Setting Standards: Decide what your rental criteria are—then make sure you advertise the property accurately. Determine the following:

  • Rental price and rental period.
  • Minimum income requirements.
  • Security deposits for last month’s rent, damages, pets, etc.
  • Who pays which utilities.
  • Restrictions on pets, smoking and/or maximum number of occupants or cars.
  • Responsibilities for maintenance, repairs, yard upkeep and pest control.
  • Satisfactory personal and former landlord recommendations.

Applications And Screening: Make sure your application form asks for all the information you need. Ask applicants to show their legal identification and verify the information they’ve provided to you. Remember, although you do have the right to choose who lives in your property, the Fair Housing Act prohibits discrimination based on the applicant’s race or color, national origin, religion, sex, familial status, and handicap or disability. In ads: Describe the property, not the people.

TIP: Ask applicants for their credit reports with their application or permission to order a report directly from a credit reporting agency.
Categories: Choosing a rental client, Things to look for in a renter, Wilmington NC Neighborhoods, wilmington nc real estate, wilmington real estate stats

PLAY SMART: Savvy Tips On Buying A Vacation Home :: Wrightsville Beach

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We’ve all thought about it while lying on the beach or inhaling the fresh mountain air: “Why don’t we buy a vacation home?” Owning a vacation home can be a good decision if you buy smart.

Great Reasons To Buy A Vacation Home

They provide another investment that includes a mortgage-interest tax deduction.

Sign up for your own portal for looking at Wilmington NC real estate at www.cbbaker.com

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

 

Categories: Buying a Vacation Home, Figure Eight Island, Wilmington NC Neighborhoods, wilmington nc real estate, Wrightsville Beach NC


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.