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Buying A Home, Buying Your Investment

Watch the slide show before you buy a home.

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Buying A Home, Buying Your Investment

  1. 1. My Home, My Investment Darouny (D) Kommany Residential & Commercial Specialist The Kommany Group, LLC 601-454-5714 [email_address]
  2. 2. A Home, an Investment <ul><li>How many renters? </li></ul><ul><ul><li>Many </li></ul></ul><ul><li>How many home owners? </li></ul><ul><ul><li>Not Enough </li></ul></ul>
  3. 3. Renting Vs. Buying <ul><li>Renting </li></ul><ul><li>Advantages </li></ul><ul><ul><li>Little responsibilities </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Low Commitment </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Pay your landlord, 100% Expense </li></ul></ul><ul><ul><li>Rent usually increases after lease term </li></ul></ul><ul><ul><li>Neighbors </li></ul></ul><ul><ul><li>Area Vs Price </li></ul></ul><ul><ul><li>Rules </li></ul></ul>
  4. 4. Total Annual Rent Payments Monthly 1 Year 3 Years 5 Years $500 $6,000 $18,000 $30,000 $1,000 $12,000 $36,000 $60,000
  5. 5. Purchasing <ul><li>Disadvantages </li></ul><ul><ul><li>Money i.e. down payment, closing, etc. </li></ul></ul><ul><ul><li>Commitment </li></ul></ul><ul><li>Advantages </li></ul><ul><ul><li>Pay yourself, Equity </li></ul></ul><ul><ul><li>Deductions </li></ul></ul><ul><ul><ul><li>Interest rate & PMI </li></ul></ul></ul><ul><ul><ul><li>Real Estate Taxes </li></ul></ul></ul><ul><ul><ul><li>Others </li></ul></ul></ul><ul><ul><li>Many Mortgage Programs </li></ul></ul>
  6. 6. Purchasing Continued <ul><li>Based on 100K@6% 30 yrs </li></ul>
  7. 7. Tax Deductions <ul><li>Schedule A - Deductions </li></ul><ul><ul><li>Real Estate Property Taxes </li></ul></ul><ul><ul><li>Interest Paid </li></ul></ul><ul><ul><li>PMI Paid </li></ul></ul><ul><ul><li>Closing Costs (Points) </li></ul></ul><ul><li>Form 5695 </li></ul><ul><ul><li>Residential Energy Credits </li></ul></ul><ul><li>Profits on Sale of Your Home Not Taxed </li></ul><ul><li>(restrictions apply) </li></ul><ul><li>Others </li></ul>
  8. 8. How’s the Market? Oh My <ul><li>What started this? </li></ul><ul><ul><li>2000 – Federal Reserve Board Chairman </li></ul></ul><ul><ul><li>Flexible Mortgage Programs </li></ul></ul><ul><li>Media </li></ul><ul><li>Local </li></ul>
  9. 9. <ul><li>Transactions from January 1 – July 10 </li></ul>Area 2008 2007 2006 Clinton 199 211 241 Southwest 686 587 579 Northeast 299 371 400 Madison/Ridgeland/Canton 666 788 830 Reservoir 393 493 505 Flowood, Pearl 195 205 162 Crossgates/ Brandon 262 333 321 Total Transaction 2,700 2,988 3,038
  10. 10. Should I Buy? <ul><li>5 Reasons to buy now </li></ul><ul><ul><li>Great Prices in your interested area </li></ul></ul><ul><ul><li>Length of stay in the home (5 yrs or more) </li></ul></ul><ul><ul><li>Rent rivals a mortgage payment </li></ul></ul><ul><ul><li>You’ve found the right house </li></ul></ul><ul><ul><li>You moved in a home with equity & leave with tremendous profits </li></ul></ul>
  11. 11. Example of buyer’s investment <ul><li>List price was: </li></ul><ul><li>135,900  129,900  125,700 </li></ul><ul><li>Negotiated Price  116,000 </li></ul><ul><ul><li>$19,700 in instant equity </li></ul></ul><ul><ul><li>3br/2ba plus bonus room </li></ul></ul><ul><ul><li>2,200 sq ft, </li></ul></ul><ul><ul><li>Great schools & desirable neighborhood, etc. </li></ul></ul>
  12. 12. Example of selling client <ul><li>Current Home – Listed for $65,900 </li></ul><ul><ul><li>2br/1ba </li></ul></ul><ul><ul><li>900-1,000 sq ft </li></ul></ul><ul><ul><li>Equity where she was able to give up </li></ul></ul><ul><ul><li>In order to Gain: </li></ul></ul><ul><ul><ul><li>A NEW HOME </li></ul></ul></ul><ul><ul><ul><li>HOME WITH EQUIY </li></ul></ul></ul><ul><ul><ul><li>UPGRADE 4BR/3BA </li></ul></ul></ul><ul><ul><ul><li>GREAT SCHOOLS & LOCATION </li></ul></ul></ul>
  13. 13. Should I Buy? <ul><li>5 Reasons to wait </li></ul><ul><ul><li>You’ve lived in your home less than 2 years </li></ul></ul><ul><ul><li>Your job security is uncertain </li></ul></ul><ul><ul><li>Length of stay in the home </li></ul></ul><ul><ul><li>Credit Challenged &/or No Money </li></ul></ul><ul><ul><li>Existing home location </li></ul></ul>
  14. 14. Steps to homeownership <ul><li>Get a good real estate agent </li></ul><ul><ul><li>Experienced </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul><ul><li>Get a good mortgage officer </li></ul><ul><ul><li>Approval versus Affordability </li></ul></ul><ul><li>Area </li></ul><ul><li>Your life plans </li></ul>
  15. 15. You Found a Home, Now What? <ul><li>Write the Offer </li></ul><ul><ul><li>CMA </li></ul></ul><ul><ul><li>Negotiate </li></ul></ul><ul><li>Contract </li></ul><ul><ul><li>Due Diligence </li></ul></ul><ul><ul><ul><li>Physical Due Diligence </li></ul></ul></ul><ul><ul><ul><li>Financial Due Diligence </li></ul></ul></ul><ul><ul><ul><li>Legal Due Diligence </li></ul></ul></ul><ul><ul><ul><li>Resalable Due Diligence </li></ul></ul></ul>
  16. 16. Close <ul><li>Final Walk </li></ul><ul><li>Review Paper work </li></ul><ul><li>Others </li></ul><ul><li>Thank you and please visit </li></ul><ul><li> </li></ul><ul><li>Darouny (Dee) Kommany </li></ul><ul><li>601-454-5714 </li></ul>