Buying A Home, Buying Your Investment
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Transcript of Buying A Home, Buying Your Investment
My Home, My InvestmentMy Home, My Investment
Darouny (D) KommanyDarouny (D) KommanyResidential & Commercial SpecialistResidential & Commercial Specialist
The Kommany Group, LLCThe Kommany Group, LLC601-454-5714601-454-5714
www.JacksonPropertyInfo.comwww.JacksonPropertyInfo.comDK@[email protected]
A Home, an InvestmentA Home, an Investment
How many renters?How many renters? ManyMany
How many home owners?How many home owners? Not EnoughNot Enough
Renting Vs. BuyingRenting Vs. BuyingRentingRenting AdvantagesAdvantages
Little responsibilitiesLittle responsibilities CostCost Low CommitmentLow Commitment
DisadvantagesDisadvantages Pay your landlord, 100% ExpensePay your landlord, 100% Expense Rent usually increases after lease termRent usually increases after lease term NeighborsNeighbors Area Vs PriceArea Vs Price RulesRules
Total Annual Rent PaymentsTotal Annual Rent Payments
MonthlyMonthly 1 Year1 Year 3 Years3 Years 5 Years5 Years$500$500 $6,000$6,000 $18,000$18,000 $30,000$30,000
$1,000$1,000 $12,000$12,000 $36,000$36,000 $60,000$60,000
PurchasingPurchasing
DisadvantagesDisadvantages Money i.e. down payment, closing, etc. Money i.e. down payment, closing, etc. CommitmentCommitment
AdvantagesAdvantages Pay yourself, EquityPay yourself, Equity DeductionsDeductions
Interest rate & PMIInterest rate & PMI Real Estate TaxesReal Estate Taxes OthersOthers
Many Mortgage ProgramsMany Mortgage Programs
Purchasing ContinuedPurchasing Continued Based on 100K@6% 30 yrsBased on 100K@6% 30 yrs
Tax DeductionsTax Deductions
Schedule A - DeductionsSchedule A - Deductions Real Estate Property TaxesReal Estate Property Taxes Interest PaidInterest Paid PMI PaidPMI Paid Closing Costs (Points)Closing Costs (Points)
Form 5695Form 5695 Residential Energy CreditsResidential Energy Credits
Profits on Sale of Your Home Not TaxedProfits on Sale of Your Home Not Taxed(restrictions apply)(restrictions apply) OthersOthers
How’s the Market? Oh MyHow’s the Market? Oh My What started this?What started this?
2000 – Federal Reserve Board Chairman2000 – Federal Reserve Board Chairman Flexible Mortgage ProgramsFlexible Mortgage Programs
MediaMedia LocalLocal
Transactions from Transactions from January 1 – July 10January 1 – July 10
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
Should I Buy?Should I Buy?
5 Reasons to buy now5 Reasons to buy now Great Prices in your interested area Great Prices in your interested area Length of stay in the home (5 yrs or more)Length of stay in the home (5 yrs or more) Rent rivals a mortgage paymentRent rivals a mortgage payment You’ve found the right houseYou’ve found the right house You moved in a home with equity & leave You moved in a home with equity & leave
with tremendous profitswith tremendous profits
Example of buyer’s investmentExample of buyer’s investment
List price was:List price was: 135,900 135,900 129,900 129,900 125,700125,700 Negotiated Price Negotiated Price 116,000116,000
$19,700 in instant equity$19,700 in instant equity 3br/2ba plus bonus room3br/2ba plus bonus room 2,200 sq ft,2,200 sq ft, Great schools & desirable neighborhood, etc.Great schools & desirable neighborhood, etc.
Example of selling clientExample of selling client Current Home – Listed for $65,900Current Home – Listed for $65,900
2br/1ba2br/1ba 900-1,000 sq ft900-1,000 sq ft Equity where she was able to give upEquity where she was able to give up In order to Gain:In order to Gain:
A NEW HOMEA NEW HOME HOME WITH EQUIYHOME WITH EQUIY UPGRADE 4BR/3BAUPGRADE 4BR/3BA GREAT SCHOOLS & LOCATIONGREAT SCHOOLS & LOCATION
Should I Buy? Should I Buy?
5 Reasons to wait5 Reasons to wait You’ve lived in your home less than 2 yearsYou’ve lived in your home less than 2 years Your job security is uncertainYour job security is uncertain Length of stay in the homeLength of stay in the home Credit Challenged &/or No MoneyCredit Challenged &/or No Money Existing home locationExisting home location
Steps to homeownershipSteps to homeownership
Get a good real estate agentGet a good real estate agent ExperiencedExperienced KnowledgeKnowledge
Get a good mortgage officerGet a good mortgage officer Approval versus AffordabilityApproval versus Affordability
AreaArea Your life plansYour life plans
You Found a Home, Now What?You Found a Home, Now What?
Write the OfferWrite the Offer CMACMA NegotiateNegotiate
ContractContract Due DiligenceDue Diligence
Physical Due DiligencePhysical Due Diligence Financial Due DiligenceFinancial Due Diligence Legal Due DiligenceLegal Due Diligence Resalable Due DiligenceResalable Due Diligence
CloseClose
Final WalkFinal Walk Review Paper workReview Paper work OthersOthers
Thank you and please visit Thank you and please visit www.JacksonPropertyInfo.comwww.JacksonPropertyInfo.com
Darouny (Dee) KommanyDarouny (Dee) Kommany601-454-5714601-454-5714