If you are looking to purchase a new home you may want to consider one thing that sounds a little odd, especially since it has to do with selling a home before you even buy it. Plan on what may happen when you decide to sell that home in the future.
Investing in a home is generally a great way to diversify your investments, it may be a great way to make money on your initial investment and it may be a great way to get federal tax deductions on the mortgage interest paid throughout the year. Plus, you need to live somewhere, and owning your own home gives you a sense of being part of the community.
But one item to consider, even prior to signing on the dotted line, is what will the home, the neighborhood and the community look like when you plan to sell the property. By this I want you to consider the following. Is the home you are interested in buying adjacent to a large open space? If the open space is federal land you may not have much to worry about, but if it is adjacent to land that can be developed, you just might have an unfavorable development next to your home in a few years.
Throughout the High Country we have seen over the past 15 years a boom in building. We have seen large commercial areas being built, we have seen large multi-family complexes being built, and all of these have an effect on properties that were there prior to the new construction. Some of the homes may have had their views affected, some may have more noise and traffic to contend with and some may have been surrounded with commercial property thus affecting the value of the home as a home.
So as a mortgage lender I would like to see my clients make a good decision in the property they buy. I would like them to consider buying a property that will go up in value, and when they decide to buy another property I would like to see them take their increased equity and put it in an even larger property.
I also recommend to potential buyers to do what is called their Due Diligence on the property they are interested in buying. Buyers need to visit the neighborhood in the mornings to see the area; and they need to do the same in the afternoon and the evening. I recommend that a potential buyer drive the area during the weekends and visit the planning department in the governmental office that the property is located. A buyer just might learn about bike paths that may be in an area that they originally were informed is open space. They might learn about proposed residential or commercial developments that may affect property value and views. They might learn that they have found a home that is just perfect. But without asking a lot of questions they may learn too late that the seller knows something that they do not know, and that is why the property is on the market.
So when you become a potential buyer do your research. Ask questions of your real estate agent. Contact any homeowners association or management company and ask questions of your lender. Then go ask the governmental agency where that the home is located. Be informed so that when you sell the property you will hopefully make a nice profit and you can go through all of these steps again when you buy another home.
For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at robertk@mymillenniumbank.com. Bob is a local mortgage lender with Millennium Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal
Housing Lender. NMLS Bank #477710 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Millennium Bank.
Investing in a home is generally a great way to diversify your investments, it may be a great way to make money on your initial investment and it may be a great way to get federal tax deductions on the mortgage interest paid throughout the year. Plus, you need to live somewhere, and owning your own home gives you a sense of being part of the community.
But one item to consider, even prior to signing on the dotted line, is what will the home, the neighborhood and the community look like when you plan to sell the property. By this I want you to consider the following. Is the home you are interested in buying adjacent to a large open space? If the open space is federal land you may not have much to worry about, but if it is adjacent to land that can be developed, you just might have an unfavorable development next to your home in a few years.
Throughout the High Country we have seen over the past 15 years a boom in building. We have seen large commercial areas being built, we have seen large multi-family complexes being built, and all of these have an effect on properties that were there prior to the new construction. Some of the homes may have had their views affected, some may have more noise and traffic to contend with and some may have been surrounded with commercial property thus affecting the value of the home as a home.
So as a mortgage lender I would like to see my clients make a good decision in the property they buy. I would like them to consider buying a property that will go up in value, and when they decide to buy another property I would like to see them take their increased equity and put it in an even larger property.
I also recommend to potential buyers to do what is called their Due Diligence on the property they are interested in buying. Buyers need to visit the neighborhood in the mornings to see the area; and they need to do the same in the afternoon and the evening. I recommend that a potential buyer drive the area during the weekends and visit the planning department in the governmental office that the property is located. A buyer just might learn about bike paths that may be in an area that they originally were informed is open space. They might learn about proposed residential or commercial developments that may affect property value and views. They might learn that they have found a home that is just perfect. But without asking a lot of questions they may learn too late that the seller knows something that they do not know, and that is why the property is on the market.
So when you become a potential buyer do your research. Ask questions of your real estate agent. Contact any homeowners association or management company and ask questions of your lender. Then go ask the governmental agency where that the home is located. Be informed so that when you sell the property you will hopefully make a nice profit and you can go through all of these steps again when you buy another home.
For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at robertk@mymillenniumbank.com. Bob is a local mortgage lender with Millennium Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal
Housing Lender. NMLS Bank #477710 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Millennium Bank.
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