January 2016 Petit Home Team Newsletter
1. Petit Home Team NEWS
2. Six Reasons to Buy a Home in 2016
3. Just Listed/Sold properties
4. Don't Miss These Home Tax Deductions
1. Petit Home Team NEWS
Happy New Year from all of us at Petit Home Team! We are thrilled to begin the year full of positive energy and excitement. We had a very busy month of December and we are riding this wave into the month of January. This year we will continue to build our business by putting our clients first. We have a full service team ready to help anyone buy or sell real estate. Please tell your friends, family and neighbors about the Petit Home Team!
"You can have everything in life you want if you will just help enough other people get what they want."Zig Ziglar
2. Six Reasons to Buy a Home in 2016
Reason No. 1: Interest rates are still at record lows
Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.
Reason No. 2: Rents have skyrocketed
Another reason home buyers are lucky is that rents are going up, up, up! (This, on the other hand, is a reason not to be thankful if you’re a renter.) In fact, rents outpaced home values in 20 of the 35 biggest housing markets in 2015. What’s more, according to the 2015 Rent.com Rental Market Report, 88% of property managers raised their rent in the past 12 months, and an 8% hike is predicted for 2016.
Reason No. 3: Home prices are stabilizing
For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets.
For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets.
Reason No. 4: Down payments don’t need to break the bank
Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers. For instance, the new Fannie Mae and Freddie Mac Home Possible Advantage Program allows for a 3% down payment for credit scores as low as 620.
Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers. For instance, the new Fannie Mae and Freddie Mac Home Possible Advantage Program allows for a 3% down payment for credit scores as low as 620.
Reason No. 5: Mortgage insurance is a deal, too
If you do decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way. In fact, the FHA predicts this 37% annual premium cut will bring 250,000 first-time buyers into the market. Why not be one of them?
If you do decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way. In fact, the FHA predicts this 37% annual premium cut will bring 250,000 first-time buyers into the market. Why not be one of them?
Reason No. 6: You’ll reap major tax breaks
Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.
Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.
3. Just Listed/Sold properties
9004 Torrence Crossing Drive
Huntersville, NC 28078
$268,900
http://www.tourfactory.com/1468772
Spectacular tri-level home with 3000 sq. ft. in Cedarfield! Fully finished lower level w/ walkout adds bedroom... all hardwood floors,HUGE closet and family rm.Open floor plan on main level with pellet stove fireplace in living rm. Kitchen counter area adds additional seating.Dining rm, office and tiled half bathroom complete first floor. Upstairs boast 4 BR's and laundry.Finished garage with workshop
area and storage.Lovely home with a fenced in yard, sitting in a quiet cul-de-sac, next to pool!
area and storage.Lovely home with a fenced in yard, sitting in a quiet cul-de-sac, next to pool!
416 S. Race Street
Statesville, NC 28677
$87,500
http://www.tourfactory.com/1469724
Well maintained 2 story with unfinished basement and a detached garagein the heart of the historic district in Statesville. This cozy 4 bedroom,2 bath home features hardwoods on the first floor, wood burning fireplacein the family room, room on the first floor that could serve as the master.The kitchen has been renovated with tile back splash, recently installed appliances,a separate prep island and a formal dining room. 3 bedrooms on the second floor with an attic fan. PRICED TO MOVE.
SOLD
125 Hickory Point Court, Statesville NC 28677
SOLD
6910 Murray Grey Lane, Charlotte NC 28273
SOLD
121 Donsdale Drive #Lot 1, Statesville NC 28625
SOLD
147 Sheep Path Drive #32, Mooresville NC 28115
SOLD
Davies Circle, Cleveland, Rowan County - Land
4. Don’t Miss These Home Tax Deductions
From mortgage interest to property tax deductions, here are the tax tips you need to get a
jump on your returns. Owning a home can pay off at tax time. Take advantage of these home ownership-related tax deductions and strategies to lower your tax bill:
Mortgage Interest Deduction
One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house,trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet.
Prepaid Interest Deduction
Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
Property Tax Deduction
You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too.
Vacation Home Tax Deductions
The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home. If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you deduct mortgage interest and real estate taxes on Schedule A. Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Your expenses are deducted on Schedule E. Rent your home for part of the year and use it yourself for more than the greater of 14 days or 10% of the days you rent it and you have to keep track of income, expenses, and allocate them based on how often you used and how often you rented the house.
