Price, Shmice. Why looking for a 'good deal' isn't always the best way to buy a house.

When buying a house, price is always a factor.  Always.  But at what cost will you chase 'the good deal' in lieu of finding the perfect home?

Sometimes price isn't king for many home buyers.  Not to say that you should throw money at the first house you love.  However, when shopping for a house, it's never a good idea to rule out a home that you might love simply because there is another house with a better price.

"A house affects so much of your life," said Will Lipovsky with First Quarter Finance. "Living in a beautiful house improves my mood quite a lot.  Excellent location, fine craftsmanship, and plenty of space...it's worth spending a few extra dollars in my opinion."

Affordability

I will certainly never suggest living outside your means, or committing to a mortgage on a house twice your budget.  But upping your budget to cater to better location, better amenities that cater to your lifestyle, bigger floorplan to grow into can make a huge difference without causing financial ruin.


Consider this:

Principal and interest (P&I) on a $200,000 house at four percent is $954.83 per month. Raise that budget to $250,000, and the P&I goes to $1,193.54. Will that $50,000 make the difference between a starter home and a dream home? Maybe not. But in a first-time buyer market, it can greatly improve the location, the space, or both, and all for $238 a month.

P&I on a $400,000 house at four percent is $1909.66. Opt to buy a $500,000 house instead, and you'll pay $2,387.08 per month. The $477 increase in your monthly payment can make a world of difference in the house you buy, and how you feel about it.

The term 'house poor' sounds awful, because it is!  You certainly don't want to over buy, and you certainly still want to make a solid financial choice that will allow you to eat more than cereal and ramen noodles everyday.  But in this instance, isn't a home that you can be happy in and excited about, worth forgoing a Starbucks run a couple times a week, or brown bagging it to work, rather than hitting the drive thru?

There are many ways to find extra dollars to go toward your home.  Here are some options that can make an impact.

Eating Out.
A night out in a restaurant is no longer a novelty.  "Sales at restaurants overtook spending at grocery stores...for the first time ever, according to Commerce Department data released [in April 2014] for the first time since 1992," as reported by Bloomberg Business.


What does that translate to?  More than $6,000 a person for the average American. For many home buyers in the Jacksonville area, $12,000 is their annual mortgage expense.  Dinner out with your spouse could equal owning your home.

According to Forbes, "Americans go out for lunch on average twice a week and spend $10 each time. That means they're spending $936 annually." Between two adults, you just found almost $2,000 a year just by bringing your lunch. Will that buy you the estate with the view? Nah. But it'll get you closer to owning a home, which is the first step to financial freedom and wealth.

Check Out Your Ride.
Are you driving the latest model with all the bells and whistles?  If the answer is yes, you're likely paying close to $700 every month for your vehicle.  Which could translate to a monthly payment on a home priced around $120,000, depending on loan type and fees.  You don't need to necessarily get rid of your ride.  You could possibly trade it in for the next lower model type, or perhaps negotiate a lower interest rate on the payments if you've been current and on time.  Or, even, go with a hybrid.  There's a couple hundred dollars a month in gas, saved!

Declutter and Downsize.
Antique furniture sitting in the corner of the garage, old electronics collecting dust in the attic, and old handbags you're never going to use again can make you money. Check sites like Huffington Post and Country Living to get an idea of the worth of things like antiques and collectibles. Other things might be eBay worthy. Mashable has a list of the "9 Valuable Things You Didn't Know Are Lying Around Your House." (Pokemon cards? Really?)

Crowdsource It.

Have a birthday, wedding, or anniversary coming up? Let your loved ones contribute to your down payment.
Need more ideas? The Simple Dollar has 100 - yes, 100 - more ways you can cut back and save money. Soon, that dream house will be right around the corner!
 

2015 BAH Rates in Jacksonville, NC

Here we are, at the end of 2014, and the question on everybody's minds is, "What's my BAH going to be in 2015??"

Well, good news, BAH rates have increased for 2015 across the board!  Some by as much as $40, some as much as $115!  And, by the way, BAH is the acronym most military personnel have become accustomed to using which simply stands for Basic Allowance for Housing. 

Military members who are assigned to a permanent duty station within the 50 United States, and are not furnished with government housing (whether due to availability or by choice) are eligible for BAH, based on rank, dependency status and permanent duty station zip code.  Some units have local rules about eligibility as well.
Another fun fact, BAH is tax free income.  Which means, for instance if your pay grade is E-4 or below and you're stationed aboard Camp Lejeune in 2015, you can receive $948 a month (unless you have dependents, then it's more!) to cover the cost of rent, tax free.  Sometimes you may incur out of pocket expenses if your bills are more than your allowance.  Budgeting can help alleviate that though!
So now, you're planning to live "out in town" or "off base" and you're receiving $948 every month (or  $11,376 a year!) to cover your living expenses.  What if you used this TAX FREE money to purchase a home, instead of renting?  Let's face it, you're going to be paying someone's mortgage, whether you're renting or buying, right?  So what would it look like, if you allowed the military to purchase your house for you?  It's the same amount of money every month, except by purchasing, you're making your money work for you by investing it in your own home.  With the current interest rates (as of today, December 22, 2014,) $948 a month will afford you about a $145,000 home, depending on taxes and insurance.

The reason I suggest this course of action, is mostly because I've done it, and I was able to invest, re-invest, and earn passive income (that's money I get every month without working, because someone is paying me to live in one of my houses!) ten years later, simply by buying a house using my BAH.  (True Story!!)

If this sounds like a sales pitch, I apologize.  It isn't.  It's only a word to the wise.  I have seen too many young service members in the last 15 years blow their money and have nothing to show for it by the time they're 30 years old.  And I want to help educate and help prepare for the future.  
If you are not living in the barracks or in base housing, you are getting at least $11,000 a year for living expenses.  Use it wisely or pay someone to live in their house.  
The choice is yours!
We'd love to help you, whether you decide to rent or buy and you can check out available homes here!  Give us a call for a free consultation to explore your options and talk about the home buying process, the Jacksonville real estate market, or investing in real estate!  910.545.0450  Click here to see the new BAH Rates for 2015!

**Just an update- had some questions about who will be receiving an increase in BAH and some discussion about certain service members not because of time in service.  According to this DOD bulletin, the BAH change is across the board.  Obviously the amount is dependent on location, rank, and whether the service member has dependents or not.

Horse Properties near Camp Lejeune!

For all of you equestrian enthusiasts who would love a great home and some land near Camp Lejeune, I've compiled a list of the best horse properties currently on the market!  Most of these homes are relatively close to area beaches as well!  

One home located at 501 PA Nobles Store Road in Deep Run, NC is situated on almost 30 acres.

               

The home features 4 bedrooms, a sun room, huge sweeping backporch for those Carolina evenings and tons of garage space!!  Listing courtesy of Jaime Dorn, Harrison Dorn Innovative Property Specialists.

For your personal tour of horse properties near Camp Lejeune, or in the southeastern North Carolina area, call me!  I'd love to view them with you! 

Nothing says southern charm and elegance like this custom built brick home on 15 acres at 265 Sewell Road, Jacksonville, NC  28540.  Located minutes to New River MCAS, Topsail Island and Stone Bay in Sneads Ferry, this personal retreat is close to everything.  The six stall horse barn features a sizeable tack room and wash bay, as well as separate quarters for weekend guests!  Attached to the barn is a full kitchen and media room for entertaining.  The paddocks and pastures have been designed for easy turn out and convenience.  There are stocked ponds on the grounds as well.  The home boasts over 3600 heated square feet of living space with four bedrooms and three full baths.  The gourmet kitchen is sure to please as well as an impressive media room.  This horse property is located approximately 15 miles to Camp Lejeune, making an easy commute to everything.  Not a detail has been overlooked in creating this perfect slice of Southern Comfort.  Listing courtesy of Lillian Wendricks, Century 21 Sweyer & Assoc.

                                             

265 Sewell Road, Jacksonville, NC is located in the Dixon High School district and very close to Hwy 17, which is perfect for quick highway access!

Whether you're an avid equestrian enthusiast or just want to horse around, call me- I'd love to give you a personal tour of these lovely horse properties for sale near Camp Lejeune!

Social Media Dos and Don'ts for Home Buying!

Everyone knows that there are dos and don'ts for home buying, but did you know that those dos and don'ts extend to social media??  Social media sites like Facebook and Twitter can do so much for people trying to find answers or stay in touch, but it can also help you blow a real estate deal!

Here's a quick list of how to use social media to your advantage when buying a home!

•DO:

~Let everyone in your network know that you're interested in buying a home!  They may know a friend of a friend that is selling and it just might work out!
~Visit the social media pages of your Realtor and mortgage professional.  
~"Like" their pages!  You might come across some rockstar tips and tricks throughout the process!
~Share positive news throughout the process!

•DON'T:
~Post how much you hate a house you saw.  That could come back to you and it won't be pretty!
~Bother with the Realtor & mortgage professional if they are 'hard selling' you on their page- you should enjoy the experience!
~Engage others who are sharing confidential or private information with others or badmouthing clients or other professionals.  There are two sides to every story and you just don't need the drama!
~Share too much information about the homes you're considering- it could weaken your negotiating position with the seller, or allow another buyer to swoop in with a better offer!
~Take advantage of the first 'good deal' you see.  You could be the one getting taken advantage of!

Home buying has become a 24/7 business with homes being marketed around the clock on hundreds of websites and through social media portals.  It's still important to get out and talk to a real person and physically see homes.  After all, if you spend your whole life online, what does it matter where you live?  Social media can definitely assist in the home buying process, just be careful that's not the only part!