The Tax Benefits of Homeownership branden chhour

The Tax Benefits of Homeownership

I will be lecturing at Chapman University in the city of Orange on Saturday, March 28, 2015 between 3:45pm to 4:45pm about the “The Tax Benefits of Homeownership” and how it can actually lower the taxes you owe to the IRS. (See Attachment). Come out for support & invite your clients/friends too. This event is for Southern California renters, home owners, property investors, individuals facing foreclosure or short sale, or those looking to buy real estate at some point in their lives. There will be over 30 other real estate topics for you to choose from to help answer the daunting questions you may have.The entire event runs from 12:00pm to 5:00pm.

This no-sales pitch educational event will also have offers, discounts, and answers from local businesses that have anything to do with owning a home: solar, tax advice, home improvement, landscaping, and more!

 

Please register with this link ASAP: http://www.ochomefair.com

Facebook Link Info: http://www.facebook.com/HomeownershipDay

This event can be a great introduction to your friends and clients as well. Please forward this email to your clients or family/friends. Any questions or concerns you have about real estate will be answered this day.

Hope to see you and your guests on March 28th!

The following topics will be covered:

  • Topics offered 12:00pm to 1:00pm
    • For Current Home Owners:
      • Loan Modifications Tips and Tricks
    • For Those Looking to Buy:
      • Avoiding Costly Buyer Mistakes
      • 1st Time Buyers and Loans
      • Show Me the $$$!! Down Payment Assistance
      • Ways To Improve Your Credit Score
    • For Those Looking to Invest:
      • Orange County Housing Market Report
      • Deferring Capital Gains Taxes: 1031 Exchanges
  • Topics offered 1:15pm to 2:15pm
    • For Current Home Owners:
      • Ways to Reduce Your Electric Bill
    • For Those Looking to Buy:
      • What Every Veteran Needs to Know About Purchasing a Home
      • How Interest Rates Affect Buying Power
      • Steps to Buy Your First Home
      • The Escrow Process
    • For Those Looking to Sell:
      • Moving On Up: Making a Smooth Transition
      • What to Expect With Your Home Inspection
    • For Those Looking to Invest:
      • Retiring on 18K/Month with NO 401(k), NO IRA, a Mortgage and a Plan

 

  • Topics offered 2:30pm to 3:30pm
    • For Current Home Owners:
      • Automatic Millionaire Homeowner
    • For Those Looking to Buy:
      • Life After Foreclosure
      • Closing Costs: What Should I expect?
    • For Those Looking to Sell:
      • Staging Your Home for Top Dollar
    • For Those Looking to Invest:
      • Property Management: Do’s and Don’ts
      • Renovation and Construction

 

  • Topics offered 3:45pm to 4:45pm
    • For Current Home Owners:
      • FHA Loans and Changes: What You Should Know
      • The Tax Benefits of Homeownership (I’LL BE SPEAKING HERE)
      • Go Green and Save Money
    • For Those Looking to Buy:
      • First Time Home Buyer Education – Certification Class
      • How to Bid and Win: Writing a Stronger Offer
      • Outside of the Box Lending
      • CYA with Homeowner’s Insurance
      • What Should my Financial Picture look like when Buying?
    • For Those Looking to Sell:
      • REALTOR Expert Panel – Ask an Agent!
    • For Those Looking to Invest:
      • Commercial Property Purchases: Do’s and Don’ts
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Home buyers negotiating branden chhuor

Reasons To Buy a Home Today

Reasons To Buy a Home Today

Branden Chhuor, October 22,2014 (All rights reserved, permission to reprint with appropriate citations)

Many people in my Southern California market have asked me, “Is it a good time to buy a house?” My general response, “It depends on your situation.”
In most situations, people are looking at properties for sale to live in, not rent out. If this matches your situation, then it is definitely still a good time to buy, even with the increasing house prices within the past couple of years. The four factors I look for in determining when it is a good time to buy your Southern Californian dream home or first home are the following:
Rent
Inflation
Interest Rates
Timing

RENT
A market with rising rent means that the real estate market is getting back on its feet and vacancy is low. When you have a situation such as today where rent is climbing faster than house prices year over year, then you are faced with the dilemma of cost to rent versus cost to own. As such, I would rather buy and lock in my monthly payment at a fixed amount than risk facing rent increases. Why pay for someone else’s mortgage? In addition, as a homeowner you would also reap the tax benefits and principal pay down on your mortgage.

INFLATION
Inflation is another factor I look at because it affects our purchasing power and the value of currency. I am surprised that the US Federal Reserve continues to downplay inflation and dismisses the notion of it. Have they not seen the prices of gasoline, milk, beef, and other consumer goods have all gone up over 30% the last 4 years while wages remain stagnant? I am betting that wage will eventually catch up with inflation and when that day comes, house prices will further increase to match the cost of material and labor to build a house. As a homeowner, you will be hedged against inflation because you will be paying a fixed monthly payment while your property steadily increases in value over time. Again, you will be paying down the principle, increasing your equity position instead of paying someone else rent.

INTEREST RATES
Interest rate is the cost of borrowing money and we are currently at a 16 month low on the 30 year fixed rate ranging 3.8%-4.1%. From a finance perspective, it’s not costing much to borrow money and people should take advantage of. People don’t realize 10-15 years ago, the 30 year rate was nearly double at 6%-8%. Buying real estate for most people means leveraging their position by putting a down payment and borrowing between 5%-95% of the purchase price. If you are borrowing, doesn’t it make sense to borrow when interest rates are at and near the all-time low? Let’s say you (a borrower) with a solid credit score and you are looking for a conventional 30 year fixed rate with 20% down payment. Let’s assume that for every 0.50% increase in interest rates, it will result in a 5% drop in house prices. Here are some scenarios to show what I mean:
Scenario 1: Home price of $500,000 at 4.25% = $1,968 monthly mortgage
Scenario 2: Home price of $475,000 at 4.75% = $1,982 monthly mortgage
Scenario 3: Home price of $450,000 at 5.25% = $1,988 monthly mortgage
As you can see, yes, prices do drop as interest rates rises, but there’s a good chance your monthly payment has gone up.

TIMING
Like that old saying goes, “Timing is everything”. The same goes for real restate. If you buy it a little too late such as 2007, then you were upside down on your property for the next 5-7 years. I believe today is still a great time to buy due to the fact that we just came out of the recession and real estate prices have adjusted. Southern California real estate historically has a cycle of 8-10 years of appreciation and then 3-5 years of depressed prices. If history holds true, then we are in the beginning of an appreciation cycle. Considering the other factors mentioned above, it’s safe to say the timing is still there for people to buy their first home.

Hopefully this reading gives you some idea of what I usually look for when people ask me the

Home buyers negotiating branden chhuor

Home buyers negotiating branden chhuor

question, “Is it a good time to buy a house?” This point of view is for those looking to buy a dream home or first home for the long haul of 5 years or more. If you are looking to buy for investment purposes, then it will depend on the area you are targeting. Stay tuned for the next article on real estate investing. Please feel free to reach out to me if you have any questions or comments.