Get out of Debt!
Posted: March 5, 2012 Filed under: Charlotte Foreclosures, Charlotte NC Distressed Properties, Enjoy Your Coffee, Real Estate, TeamHolly-would.com | Tags: advice, debt, get out of debt Leave a comment »Get out of debt today! Even though it may sound a bit like a late night infomercial, the truth is that a debt-free lifestyle can be within reach for you and your family. It can all start today.
While there are many families that are truly struggling to make ends meet and who seek out lines of credit to keep food on the table or the lights turned on, there is a large percentage of Americans that simply swipe that plastic and live on a margin.
According to CNNMoney – the average American carries $10,700 in credit card debt and $59,000 in total household debt. That’s a lot of debt!
Now let’s considered student loans. Students today graduate with an average of $25,000 in student loans. Combine that with the current rate of unemployment and we have ourselves a big problem. It’s more important than ever for us and our future to control spending habits to avoid financial troubles.
As a Dave Ramsey Endorsed Local Provider (ELP) – I have a strong distaste for debt. If you are looking for help or more information on how to get out of debt, check out www.DaveRamsey.com. There’s a lot of fantastic free information there to help.
We all know that homeownership is a great way to create long-term wealth and stability for your family. Today’s buyers, however, need to have healthy credit scores (less debt). If you dream of owning a home and want to start creating your wealth, start now by getting out of debt and working on your savings.
It’s been said that it takes 21 days to develop a new habit. Give yourself time to develop this new habit of spending. The first step is to take an honest look at all of your debt and monthly expenses. Compare this to your monthly household income. Are you spending more than you make? If so – it’s time for a real intervention!
Start by paying off the highest interest loans and credit cards first. Don’t ever fall into the trap of making minimum payments. Write out a budget of your monthly must haves: rent, groceries, gas, tuition, and utilities. Look at this every day until you develop your new spending habit.
Sure, it will be an adjustment at first, but then your new spending ways will become habit. Find alternatives to your favorite activities and nip shopping addictions in the bud. It’s not always about having fun. Learn to appreciate what you have, stay away from buying what you don’t need and to keep your goals in mind. Homeownership is a very worthy goal. Make budgeting and paying off debt your top priority and you’ll reach that goal!
If you have any suggestions on free activities to do, please leave them in the comment section!
-Holly
Dear Charlotte – Stop Procrastinating and Avoid Foreclosure!
Posted: February 27, 2012 Filed under: Bank Owned Property Tips, Bank Owned Tips, Charlotte Bank Owned, Charlotte Foreclosures, Charlotte NC Distressed Properties, Charlotte Real Estate, Real Estate, TeamHolly-would.com Leave a comment »I know you are probably sick of hearing about foreclosures, but if you are scared and think you might be facing one, there may still be help.
Many people don’t want to face the fact that they really do not know what to do, even though the headlines are flooded with foreclosure news.
If you find yourself in this kind of situation, get help. Help can be free from a realtor and there are many certified to do so. As a certified distressed property expert, (CDPE) I have been trained to do just that. TeamHolly-would has been able to help clients avoid foreclosure in Charlotte, NC. One common characteristic I find among those families is fear and embarrassment over their situation, when there is no need.
Just this month I have received calls from people asking for help after the fact, after the notice of sale or the foreclosure! When I ask them if they had had the home for sale, they say no. I cringe because had they listed their home, possibly TeamHolly-would could have helped them avoid foreclosure.
TeamHolly-would has successfully completed short sales for clients of all income brackets. If you are in true hardship, TeamHolly-would can at least give you some options but do not wait to the last minute.
Once you have made the decision to move forward with a short sale, you will no longer spend hours chasing someone to speak with at the bank. No longer getting disconnected or re-routed. No longer answering 15 security questions and being asked to participate in a survey.
At least you will have made the decision to hire someone that has your best interests and someone who will handle the details for you. The commission is paid by the bank if the sale is approved.
Stop procrastinating and avoid foreclosure Charlotte, NC.
HollyHelps.com
To Rent, or Not To Rent?
Posted: August 12, 2011 Filed under: Charlotte NC Distressed Properties, Charlotte Real Estate, Real Estate, TeamHolly-would.com | Tags: Charlotte, Real Estate, Tips 1 Comment »
After joining ActiveRain.com – a very popular blogging site for Real Estate professionals – I’ve found so many interesting blogs from my colleagues. Discussions range from stories about client interactions, Realtor advice, tips for selling and buying your home, and just plain interesting stories about Realtor experiences.
I came across a blog discussing sellers renting their homes instead of selling. Noticing this trend in my own market, I had to continue reading. The information and insight was spot on and I would like to share with all my blog readers an interesting recap.
There are two major reasons sellers will typically end up renting instead of selling:
#1. Urgency. They need to sell quickly, but in a slower Real Estate market, this isn’t always achievable at the price the seller needs. So to buy more time, they rent.
#2. Price. As we all know, home prices have taken a downward turn and sellers are not prepared to ‘give away their house’.
The idea is that in a year or two, the market will recover and then the seller can finally sell their home at the price that is reasonable to them.
As an insider to the Real Estate market, there are definitely dark corners I can shed light on that are commonly overlooked. So consider the following before giving up on selling your house:
Buying Again: Leaving equity behind in your house may prevent you from purchasing a new house.
Property Management: Managing receipts, maintenance, repairs, emergencies, and other requirements associated with renting requires time, money, and effort. You can choose to do it yourself or you can choose a property manager to do it for you.
Market recover or market bust: It may take longer than you think for real estate prices to recover. Right now, the economy remains weak. Downward pressure on home values will continue for the foreseeable future. Who can say how much longer…or steeper…prices will sink before an eventual upswing. Once the market is on an upward trajectory, it will take years for priced to return to previous highs.
Depreciation: While the IRS allows you to take depreciation as an expense against rental income, don’t think of ‘depreciation’ as only a tax deduction good for improving cash flow. Since tenants are unlikely to treat your home as well as you would, physical depreciation is a very real aspect of turning your home over to tenants.
Capital gains tax: If you rent your house for only two years, you can still sell your house and be exempt from paying IRS taxes on up to $250,000 of capital gain (when single) or $500,000 (when married). However, the depreciation you took against rental income may have to be recaptured. Be sure to consult your tax accountant.
Re-lease or try to sell again: In this climate, you’ll find tenants quickly. Once the first year’s lease is over, you’ll have to decide whether to continue renting your house or try selling. Either way, you’ll have to invest in cleaning, painting, landscaping, replacing carpet, upgrading appliances, and making repairs before the next tenants or buyers move in.
Damage goods: When you’re ready to sell, your house may be considered ‘damaged goods’. Home buyers can immediately tell if a house has been lovingly cared for or simply lived in. And they will take this into consideration when making offers.
Selling with tenants in place: Let’s face it, tenants don’t care if you sell your house or not. They don’t have a stake in the outcome. They only know it disrupts their schedule. They won’t keep the house as neat and clean as you would. They won’t be as flexible to accommodate showing appointments as you would. And they may hang around the house during showings, making homebuyers uncomfortable and eager to leave. Once their lease is up, you’ll find yourself in a negative cash-flow position and may very well be forced to rent once more.
Rental merry-go-round: After renting your house for what was supposed to be no more than a year or two…just until the market turned around…could turn into a long-term commitment. You may get stuck on the rental merry-go-round, unable to jump off. The window between leases will leave you with only a short time to list and sell your house. Before you know it, you’ll be back on the rental merry-go-round, still waiting for the opportunity to unload a monumental burden.
Rental prices may go down: Right now rental prices are what they are and they may be just fine for your needs. But renting your house as a short-term solution may not be a long-term solution. With so many homeowners turning to renting as an expedient to selling, tenants will have more homes to pick from. In time, instead of facing a ‘Buyer’s Market’ on the selling end, you may very well face a ‘Renter’s Market’ on the rental end. Such a circumstance would drive rents down year to year. After factoring in rising insurance rates and property taxes, you may eventually find yourself in a negative cash-flow position.
Mortgage rates: Mortgage rates are the lowest they’ve been in recent history. But they can’t stay low forever. When the economy recovers, the Federal Reserve will start raising key interest rates. Mortgage rates will climb in lockstep, making homeownership more expensive. To make up for higher monthly costs, buyers will bargain that much harder, forcing prices down once again.
If you have a pressing need to move out and move on, and don’t want to be weighed down with renting your house, there is a way to sell quickly and still get full market value for your house.
Thank you Judy Chapman from Illinois for your insight on the rental market.
