Blog :: 12-2016

Live In It Awhile

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Recently, I sold clients a property which is a “dream” location but a “wide awake” house. They initially planned a gut renovation/addition immediately, but wisely decided to hold off and live in it awhile.

There is nothing like time spent in a house to clarify priorities. In fact, people often say they would have regretted making the changes initially desired. The big and costly addition one thinks absolutely necessary might be avoided by clarifying spatial relationships with the moving of a partition or two.

Simply cleaning the carpet, and perhaps an overall professional cleaning, can make a place habitable while the new owner ponders her/his needs and wants. Taking the time to get referrals for and interviewing architects, designers, and general contractors is time very well spent. Then there is the planning process itself including drawings and specifications needed before construction can even begin, possibly permits to pull, and long lead time materials to order, all before demolition can begin.

One hopes to spend many happy years in a new home. Why shortchange the construction process by a few months only to regret the time saving later? Live in it awhile.

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    Rising Mortgage Rates - What Should You Do?

    Well, we knew it couldn’t last forever. Over the past few years, we have enjoyed long-term interest rates between 3% and 4%, combined with relatively low post-recession housing prices. This has created a great opportunity for homebuyers to enter the housing market. 

    But it seems like the writing is on the wall. This week mortgage rates rose above 4% due to the uncertainty caused by Donald Trump’s unexpected victory and the expectation that the Fed will finally raise the Fed rate after so many false alarms.

    If you have been on the fence about buying a home, it’s time to JUMP OFF THE FENCE.

    Give us a call at Best & Cavallaro (860.435.2888) and we would be happy to help you find your home or real estate investment.

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      Airbnb and Your Credit

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      The Wall Street Journal published an article on banks denying credit to homeowners who rent rooms or apartments from their primary residence. If you advertise a room or portion of your primary residence and have or want a credit line on your house, it might be worth your while to have a chat with your banker.

      It doesn’t really make sense. If a homeowner gains additional income by renting a portion of their property, that homeowner should present a lower risk profile to the bank. Many homeowners who rent may eventually apply for refinancing, a home equity loan, or a mortgage. These days, the mortgage banks are questioning whether the rental income changes the category of the home from a primary residence to an investment property or a commercial business. On this basis many are being turned down on their loan requests.

      If you haven’t yet decided whether to rent out, you may want to check with your banker first.

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