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Does it still make sense to buy a house?

ImageIn days gone by, purchasing a house was a solid financial step in the right direction, an unquestioned investment in future economic security, and a guaranteed piggy bank of wealth accumulation. But what about today? Times have changed, prices are much higher, inflation seems to have disappeared, and the question must be asked out loud: Should you be buying a house?


The answer is not a simple one. During the 1970's (and even well into the 1980's), residential real estate was a blessed investment. It seemed you could buy any house and always be able to sell for more later. With values going up 10-15% yearly, it was crazy not to buy a house.

But today you can't be sure that property values will even remain stable, much less increase. Some recent buyers, especially in the condominium marketplace, have seen their property values drop significantly in recent years. For a combination of reasons, home ownership has lost some of it's luster. And even though we are looking forward to the end of the recession, there is no guarantee about the future.

So how can you know if buying a house still makes sense for you? The question can be answered by shedding light on the current situation and asking yourself a few questions.

Do you have a steady income and money for the downpayment?

Do you recognize the responsibilities of home ownership?

Do you plan to stay in the house several years?

If you can honestly answer these questions with a "yes," then and only then can we proceed to benefits of buying now...and there are several.

a. Historically, owning your own home has been one of the primary means of accumulating wealth in this nation. Real estate is a slow, steady performer, rarely giving a dramatic return, but increasing in value consistently over the years. It works because you can buy a relatively expensive house with a small down payment (as little as 5%), and borrow the rest, to be paid back over time. And you get to live in the house in the meantime.

b. Our tax system rewards home buyers. Remember that all of the interest you pay on your home mortgage is tax deductible, which can lower the effective borrowing cost to the 6% range. And other incentives when you sell allow you to postpone or avoid taxes due on profits. None of these benefits applies to renters. Which brings us to financing.

c. Interest rates are attractive right now. Now is an excellent time to lock in a long term loan at a low fixed interest rate. You will have the assurance of knowing that the payments will never increase if rates go up, and you can also refinance the loan if rates should get much lower (don't hold your breath).

 
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LANDLORD SURVIVAL TRAINING

with John Adams
Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.

Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.

For more details and to register click HERE

PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th

One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.

At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.

In this 3 hour information packed seminar, John will teach you how to:

1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary

If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.

For more details and to register click HERE