Posted on

Inside Appeal: Cost vs. Value

As we transition into fall, and the weather gets chilly, we will be spending more and more time inside our homes. So this month, we’re focusing ourselves indoors to discuss home improvements you can do inside to get the best return on your investment. It’s always important for homeowners to make sure they’re putting their money in the right place. So the first question that comes to mind for many is, will this renovation pay off?

 

 

Remodeling

magazine has tracked the cost of a variety of common home improvement projects, and calculated how much of that cost was recovered when the home sold. The numbers are in for 2015: Move over kitchen and bathroom remodels, because the attic bedroom is stepping up to the plate. Raking in a whopping 103% cost recouped, with a job cost of $55,318, attic bedroom remodels are number one on the list for midrange indoor projects in the Portland Metro Area this year.

 

Attic bedroom remodels can be a smart investment; they increase living space without increasing the home’s footprint, and the basic structure–roof, floor and wall–already exists. Functionality of the home is increased, which can be very desirable to potential buyers. Though attics may have quirks, like sloped walls, and zoning laws/building codes should always be adhered to, an attic bedroom remodel is still nearly half the cost of an addition.

If you have any questions about whether or not remodeling is right for your situation, please think of me as a resource. I would love to chat with you!

Cost vs. Value 2015: The Runners Up (Midrange Portland Metro Area)

  • Window Replacement (wood): 97.3% Cost Recouped – $11,606 Job Cost
  • Minor Kitchen Remodel: 94.4% Cost Recouped – $19,672 Job Cost
  • Window Replacement (vinyl): 87.3% Cost Recouped – $10,582 Job Cost
  • Basement Remodel: 78.9% Cost Recouped – $67,807 Job Cost

 
Curious what home improvement projects bring in the worst return on investment? Below is a list of the lowest cost recouped on a project:

Cost vs. Value 2015: The Main Offenders (Midrange Portland Metro Area)

  • Home Office Remodel: 47.3% Cost Recouped – $29,899 Job Cost
  • Sunroom Addition: 48.5% Cost Recouped – $77,590 Job Cost

 

Source: Remodeling

Posted on

Foster-Powell — 3923 SE 73rd Ave

$359,000 — 2 Bedrooms, 1 Bath — 1160 SF

Gardeners’ Oasis on huge 80×100 lot. 1926 farmhouse in Foster-Powell, near cafes, shops & 2 parks. Lush greenery frames this 2-level charmer w/2 bedrooms + a bonus rm. Gorgeous wood floors. Central hall opens to secluded deck & sunny, expansive fenced yard with gardens & chicken coop. Important updates include insulation & plumbing. New roof, high eff furnace. Lovely greenspace across street adds to rural feel.

Listed by: Laurie Sonnenfeld @ M Realty LLC

SOLD — 6 Days on Market

Peaceful Farmhouse With Huge Yard, Near Foster-Powell Cafes

Lush greenery frames this charming 1926 two-level home where large and varied outdoor spaces harmonize beautifully with the open and comfortable interior atmosphere.

Warm wood floors flow throughout the home,
including one bedroom on each level, plus a bonus room. The front living areas bask in morning light and afternoon sun beams into the back. The central hallway opens to a deck sheltered by a majestic tree, creating a peaceful haven to enjoy birds and fresh air.

The roomy kitchen provides a modern gas range and a breakfast spot looking out on the front garden.

The expansive, sunny, fenced back yard stretches to multiple gardens, a chicken coop, and an open area just right for games or dog play.

Many important updates including new roof, new interior and exterior paint, and new gas furnace.

A big green space across the street with large garden adds to the rural feel of the setting, yet the location offers a very easy commute in every direction.

Posted on

Renters Are Eyeing Buying

Our rental market is on fire right now. The initial draw is understandable – less hassle involved in moving, less responsibility for the home itself, fewer maintenance expenses, fewer financial barriers to start renting. Particularly for younger individuals, renting seems to be the norm. But things are changing. Unemployment is turning around. College-educated millennials are venturing out of their parents’ basements, starting to turn the tide in the battle against student debt, and looking toward the future.

 

Even with our aggressive rental market, many are still torn: rent or buy? Renting has the up-front advantages listed above, but the spell begins to break when considering the long-term picture. At some point in any given area, if you live in the same place, the expenses of renting will eventually become greater than if you lived in a home you own. That point is known in the industry as the breakeven horizon. A useful tool, the breakeven horizon factors in things like property taxes, closing costs, renovations, maintenance, and insurance.

In short, the breakeven horizon tells you one thing: when buying a home becomes less expensive than renting. According to this article, the breakeven horizon for Portland is 2 years. Compared to LA’s 5.1 years, Washington D.C.’s 4.2 years, or San Diego’s 3.8 years, buying makes financial sense much sooner here.

 

The rental market being what it is, widespread increases in rental cost are spurring more people toward buying a property of their own. Naturally, the breakeven horizon isn’t the only consideration when deciding the right time for home ownership, but it’s a great place to start. I would love to answer any questions you might have, and I’m always available to discuss the best real estate strategy for you.

Posted on

Tilikum Crossing

A new sibling in Portland’s family of bridges opens to the public on September 12th, 2015. Tilikum Crossing, Bridge of the People, brings a beautiful splash of color to the Portland skyline after sundown. Its  nighttime lighting scheme  actually changes color based on the temperature, speed and depth of the Willamette River flowing beneath the bridge.

 

The first Portland bridge built across the Willamette in forty years, at over 1700 feet in length, Tilikum Crossing stands alone as the longest car-free bridge in the nation. Instead, bicyclists and pedestrians will share the bridge with the new MAX Orange Line. Under construction since 2011, this cable-stayed bridge will start to relieve commuter congestion on the other bridges, as well as provide a safe, dedicated, and ADA-accessible option for all non-car travelers.

This spelling of Tilikum is from the traditional Chinook language, used in this area for centuries. It means “family” or “tribe” and was selected by TriMet from a list of public submissions to honor the Chinookan people, whose ancestors lived on the Lower Columbia for thousands of years.

When it opens on Sept 12th, be sure to check out Tilikum Crossing for yourself!

Posted on

Home Style Guide

When shopping for a new home, the industry lingo can be a bit daunting. Knowing your home styles will make your hunt easier, and just might turn you onto a layout you didn’t know existed. This guide provides an overview of the most common home styles found in the greater Portland area. Each style boasts many features and nuances, with the broad strokes outlined in the following guide. With this as your starting point, you’ll be equipped to swiftly narrow your search to find the perfect fit. Let me know your favorites and I’d be happy to go into greater detail with you!

Bungalow homes are renowned for their economy and charm. They often feature an open floor plan, with the majority of the space in the living room. Instead of fewer, large bedrooms, bungalows favor numerous smaller bedrooms. The majority were built between 1900 and 1950, and sit at one or one and a half stories tall.

A mid-century modern home features open living spaces, a good view of yards and patios, exposed beams, and high-tech kitchens. These homes were constructed mostly from 1940 to 1975. The design came from a focus on modern lifestyle, resulting in a clean simplicity.

Ranch homes ascended to the height of their popularity in the 1940s to the 1970s, often the choice of the booming middle class during the post-war period. In profile, a ranch home is close to the ground, long, and uses a minimum of decoration on the interior or exterior. Most often, they are single-story with an open, simple floor plan.

A daylight ranch mixes things up, featuring many of the same characteristics as a ranch home. However, it also boasts a daylight basement. That simply means that the basement mirrors the floor plan of the main level, while having windows that allow in daylight. Daylight basements often offer doors to yards or patios.

Portland Foursquare homes claim a boxy, square design. They typically stand two and a half stories tall with four square, large rooms to a floor, framed on the top and bottom by a center dormer and front porch with stairs. The unique shape of foursquare homes allows them an amazing amount of interior space – an important goal for city lots.

Different styles of homes fall under the term “traditional.” Colonial homes, along with certain Cape Cod or Victorian homes can all be considered traditional. Instead of a set type of home, traditional homes are defined by their characteristics. Straight lines, lots of medium or large windows, and two story height all distinguish traditional homes.

Contemporary homes strive to defy definition. They often feature geometric shapes, plenty of asymmetrical designs, and large windows. The shape of the home itself can incorporate outdoor space, with shapes like L, U, or T being common. A large amount of contemporary homes employ eco-friendly materials and green, energy-conserving design.

Craftsman homes incorporate natural materials like wood, stone, brick, glass, and tile to create a comfortable, timeless home. They often boast gabled roofs, exposed beams, overhanging eaves, substantial porches, and stone chimneys. Interiors feature earthy and wood tones, wood trim with natural finishes, and many windows to allow plenty of natural light.

The townhouse brings another classic option to the table. Common in cities, townhouses are vertically oriented, narrow, and tall, often three stories. Townhouses are independent and often individually owned, while being adjacent to other townhouses, forming a row.

Posted on

Understanding Urban Infill

Even with all the attention urban infill has been getting lately, it’s surprisingly difficult to get a clear and concise explanation of it. Here’s Portland’s urban infill issue painted in broad strokes:

  • We have a regional government council called Oregon Metro that protects Portland’s surrounding farmland, forests and municipal boundaries with an Urban Growth Boundary.
  • This Urban Growth Boundary prevents urban sprawl into protected areas.
  • Builders can’t level land and construct endless concrete commuter communities out toward the horizon.
  • Despite the  Urban Growth Boundary’s gentle expansion , there are more Portlanders arriving every day and they need places to live.
  • So builders are buying where they can, tearing down homes, repurposing other buildings and sub-dividing lots into multiple properties.

Thus, urban areas are being filled-in with new construction. This often causes uproar due to the loss of familiar neighborhood landmarks, its added stress on urban services and an increase in traffic congestion.

In Portland, the most recent and loudest outcries have come when builders tear down something old and familiar to hammer together a structure that some neighbors perceive as out of place.

But not all builders are mustache-twirling profiteering villains. Some take great care to design homes that share the aesthetic of the neighborhood, offering modern amenities in a style meant to preserve the community’s charm. Others strive to design and build modern structures to reflect today’s tastes and energy-efficient systems.

The bottom line is there will always be a degree of public outcry whenever something new replaces the long familiar. In an ideal world, we would be able to increase density without controversy. As it is now, with Portland’s regional governance calling the shots via the Urban Growth Boundary, we’ve quite literally elected for urban infill over urban sprawl.

In the absence of a perfect population density solution, you’re unlikely to hear the last of urban infill outcry anytime soon. Headlines aside, when it comes time to purchase a home, you can either support the traditional, embrace the new or seek out a hybrid of the two.

Posted on

The Allure of Modern Homes

Style travels in waves, lapping at the shore of our social consciousness only to ebb and return on the next tide. The modern architecture style is especially well-suited to Portland and its appeal never leaves the forefront here for long.

You tend to know mid-century modern homes when you see them because they look like you’d be living in an episode of Mad Men. Evolving from the aftermath of World War II industrial construction efforts, architects could now incorporate steel and plywood into their designs. But this wasn’t simply an application of new materials. Mid-century modern architects truly embraced the artistic power of their profession, their signatures boldly emblazoning Portland neighborhoods to this day.

Modern architecture is an echo of modernist philosophy. It was a rejection of the traditional in favor of embracing the present (and the future) as it presents itself. Unnecessary flourishes and artifice were thrown out in favor of clean, unbroken planes. When you can look up at the naked functionality of a post-and-beam ceiling, you see the structure of your home for exactly what it is.

This design’s unfiltered acceptance of reality extends to Nature as well. Floor-to-ceiling windows invite the outside in. As children grow up in these homes, they don’t have to wait to be tall enough to peer out a window, but are face-to-face with the world as soon as they can crawl. Some modern home designs even feature an atrium, truly treating Nature as a member of the household.

Ensconced in the enviable landscapes of the Pacific Northwest, many of Portland’s contemporary builders are still employing the modern style in today’s homes for its aesthetic appeal. Not only do these properties love the camera lens, but their owners love living in a work of art.

Posted on

The Right Time to Sell

It’s one thing to hear buzz about the real estate market heating up (it’s an exciting indicator for those looking to sell), but it should really prompt home owners to take a deeper look at their own property and then gauge the most strategic time for them to enter the marketplace.

Looking at the inventory trend (the number of homes on the market) over the last several years, we’re seeing a steady decline in quantity. Certain aspects remain predictable, like the obvious seasonal rhythm in Portland’s buying trend. And even a glance at these graphs confirms that it’s a definitely seller’s market. With fewer homes available, demand must be higher, right?

Yes and no. The clamor over “quality homes” is higher than ever. Well-presented properties with desirable traits can spark multiple-offer situations (bidding wars), pushing up the final selling price. But our region also possesses an educated buyer pool, savvy to artificial hype due to limited selection.

So we must gauge what makes your property special. If it’s your outdoor spaces, it can actually be beneficial to hold off until everything is in full-bloom for a TrueView photo/video shoot on a sunny day. Or if it will be possible to professionally stage your home in two months, the investment can be well worth the wait. Every seller’s situation is unique.

Inventory is down, absorption rate (the percentage of available homes that are being purchased) is up, but that’s certainly no reason to panic into selling. Also, this data shows the trend of the greater Portland market. The most valuable data for your situation can be gathered from your neighborhood market.

Now is the perfect time to partner with your favorite agent and formulate the best plan for your home!

Posted on

Hidden Gems: Portland Hikes

Nestled between coastal and Columbia River Gorge hiking treasures, it’s easy to overlook the gorgeous hikes we have right here in Portland. These three gems provide an immersion in nature without a considerable investment in driving time. Explore the one closest to you or hit all three for a hiking hat-trick!

Wildwood Trail to Pittock Mansion Hike
Beginning this hike under the Thurman Street Bridge, the Wildwood Trail winds its way up and through a lush green landscape, populated thickly by tall trees that echo with birdsong. Expect to meet friendly flocks of local trail runners, making the pleasant climb past the mysterious Stone House, across Cornell then onward and upward to Pittock Mansion’s perch in the West Hills. This hike offers lush scenery typically found farther east in the wilds of the Columbia Gorge as well as the chance to tour a landmark rich with Portland’s history.
Start: Lower Macleay Park Trailhead
End: Pittock Mansion
Distance: 5 miles (round trip)
Elevation Gain: 900 feet
Cost: free (mansion tours $7-$10 depending on age)

Crystal Springs to Reed Canyon Hike
Crystal Springs Rhododendron Garden serves as a mecca for local flora, fauna and waterfowl. Begin your journey in the manicured grounds, its rhododendrons in bloom from mid-March through the summer, and progress into the 28 acres of rehabilitated forest in Reed Canyon. Deer are prevalent, as well as river otters, who can be glimpsed pulling fish out of man-made Reed Lake. The canyon is also home to Reed College, its nostalgic Tudor-Gothic architecture perfectly at home in the natural setting. Leisurely return to the trailhead while ruminating on this center for academia set in the simple beauty of classic Northwestern environs.
Start: Crystal Springs Trailhead
End: Crystal Springs
Distance: 2.4 miles
Elevation Gain: 145 feet
Cost: $4 – March through Labor Day from Thurs-Mon, free all other times

Tryon Creek Hike
Located just north of Lake Oswego, this verdant state park is bisected by Tryon Creek, which is fed here by a network of smaller streams. The abundance of trail options (pick up a free map from the visitor center at the trailhead) allows for creative exploration of several modest bridges spanning the waterways. Chart a trek of ideal length or simply meander through the lush expanse of protected land, losing yourself in this wooded oasis amidst civilization.
Start and End: Tryon Creek State Park Trailhead
Distance: roughly 2.5 miles (hikes vary)
Elevation Gain: roughly 200 feet (varies)
Cost: free

Posted on

Hidden Gems: Food Carts

While food carts as a concept are a famous fixture in Portland, this Hidden Gem spotlight focuses on getting your brain (and mouth) around your favorite flavor of indie cuisine no matter when and where your belly rumbles.

Food carts, like whales and peas and dolphins, are happiest in pods. This is advantageous because their listed hours often serve as rough sketches. If it’s a sunny day, the cart may stay open later or just close early so the proprietor can play outside too.

Fickle as that may sound, it makes the food cart experience an adventure. On the off-chance you aren’t able to get what you came for, that cart’s podmates will gladly feed you with their offerings. The list below is conveniently divided by location and likely hours of operation to help you get some of this fantastic food in your face!

Featured Carts

Westside
Alder Food Cart Pod (SW 9th & Alder)
Nong’s Khao Man Gai – Mon-Fri – 10a-4p
The Frying Scotsman – Mon-Fri – 11a-4p
Samurai Bento – Mon-Fri – 11a-4p
Grilled Cheese Grill – Sun-Thurs 11a-5p, Fri-Sat 11a-8p

 

 

Q19 Food Cart Pod (NW 19th & Quimby)
Sawasdee Thai – Mon-Fri – 9a-3p
The Lunch Box – Mon-Fri – 11a-3p
OMG Oregon Made Grub – Mon-Fri 11a-3p

 

 

Eastside
Bundy’s Bagels (1421 SE 33rd) Wed-Fri 6a-3p, Sat 8a-5p, Sun 8a-3p
Potato Champion (1207 SE Hawthorne) – Tues-Wed 4p-1a, Thurs-Fri 4p-3a, Sat 12p-3a, Sun 12p-1a
Angry Unicorn (5205 SE Foster) Tues-Sat – 12:15p-7p
Grilled Cheese Grill (1027 NE Alberta) – Sun-Mon 11:30a-3:30p, Tues-Thurs 11:30a-8p, Fri-Sat 11:30a-2:30a
Los Gorditos (SE 50th & Division) – Mon-Sat 10a-9p
Cartlandia Super Pod (8145 SE 82nd) – 10a-9p

Click here for a full map of Portland’s food cart pods!

Posted on

Inspiring Home Tours

Have you ever been invited into someone’s home, been given the nickel tour, spotted something fantastic and thought to yourself that you’re definitely copying that when you get home? Maybe it’s a clever storage idea, an accent wall, vintage fixtures in the kitchen, creative furniture placement or a back patio designed for maximum outdoor entertainment. Then the next time you host a dinner party, you can be the one who basks in the praise of your guests.

Beyond bragging rights, you might just add an inspired bit of functionality to your daily living space. Or you may be hankering to get those creative juices flowing for an upcoming remodel. Bigger still, it could be time to migrate to a new home altogether. Heck, even if you’re just looking for something fun to do after brunch, taking a home tour is a solution to all these scenarios.

These thoughtfully curated experiences book up quickly, so select your favorites, buy your tickets (where applicable) and mark your calendar!

Architectural Heritage Center’s Old House Revival Tour – Sat, April 11th – 10am to 4pm

Modern Home Tour (presented by Gray Magazine) – Sat, April 25th – 11am to 5pm

The Ultimate New Home Showcase – Sat & Sun, April 25th & 26th and May 2nd and 3rd – 11am to 5pm

 Restore Oregon’s Mid-Century Modern Tour  – Sat, May 9th – 10am to 4pm

Irvington Home Tour – Sun, May 17th

Posted on

Ladd’s Addition — 2145 SE Ladd Ave.

$654,000 — 4 Bedrooms, 2 Baths — 2782 SF

Much bigger than it looks! Beautiful *bright* 1924 bungalow in historic Ladd’s Addition near Hawthorne & Division cafes. Stunning vintage built-ins. Lovely cherry wood kitchen w Silestone quartz countertops. Generous light shines through a multitude of windows. Possible art studio in shop/garage that has plumbing. Sunny yard. Possible sep living quarters. Park 2 cars off street. High-rated, high achieving schools.

Listed by: Laurie Sonnenfeld @ M Realty LLC

SOLD — 15 Days on Market

Home Tour Video

Posted on

Hidden Gems: Artisan Foods of Portland

There’s an extra layer of pride when a local business achieves renown that extends beyond the shores of Portland. Not only are these artisans crafting their products here at home, but they’ll invite you inside to see how they do it and taste their wares firsthand.

  
Bob’s Red Mill

Employing time-honored techniques to quartz-grind their whole grains into an array of wholesome products, Bob’s Red Mill employees are as dedicated to quality as to each other. On Bob’s 81st birthday, he gave the company to his employees because “it was just the right thing to do.” Learn more about this remarkable organization on the factory tour at their world headquarters.

Their Whole Grain Store and Restaurant is open six days a week (closed Sundays) and serves hearty breakfasts, lunches and dinners.

  
Blue Star Donuts

Made from scratch throughout the day for maximum freshness, their donuts are always glazed to order. Blue Star prides itself on the highest in culinary standards and uses local, seasonal ingredients. There are no artificial flavors or preservatives and they have vegan options!

Check out their locations in Southeast, Southwest and North Portland.

  
Moonstruck Chocolate

Founded in Portland in 1993 on the principle that truly superior chocolates must be hand-crafted, Moonstruck still practices the same concept today. Their chocolates are designed to be not just a passing flavor but a memorable experience.

They have chocolate cafes on Alder, NW 23rd, in Pioneer Place and Beaverton. Check out the outlet store located in their factory to see how it’s all made!

Posted on

Up Your Credit Score

Brent Lucas of Guild Mortgage, M Realty’s featured partner, prepared this helpful guide to boosting your credit score.

We all know that having a good credit score is important to our financial well-being and can open doors, such as allowing us to borrow money at favorable rates for homes, cars or college tuition for our children.

Understanding, though, doesn’t always lead to following the best practices and many of us make basic mistakes with our credit that can hurt our scores, according to a recent survey by the National Foundation for Credit Counseling (NFCC).

Fortunately, you can repair and improve your credit score if it has been damaged and the Guild Mortgage home gurus have found expert advice to help. It starts with knowing what you are up against, advises the NFCC. All U.S. consumers are entitled to a free copy of their credit report every year from each of the three credit reporting agencies, and these reports can be obtained at AnnualCreditReport.com. Look at your report and find out if there are any issues that you need to correct, such as late or missed payments.

If you do spot any errors on your credit report, dispute them with the credit reporting agencies, says Forbes.com. The three agencies are Equifax, Experian, and TransUnion, and all three offer online options for disputing erroneous entries on your credit report.

Negotiating with your creditors can also prove beneficial. For example, contact a credit card company and offer to pay your balance in full if they will report your debt as “paid as agreed,” or remove the late payment information from your credit file. Forbes.com advises getting this agreement in writing before you make the payment.

Another important step you can take is to set up automatic payment reminders for your bills, says myfico.com. That’s because payment history is one of the major factors used by the credit agencies in computing your credit score. You can take it a step further and be worry free about missing due dates by setting up automatic payments for your credit card bills, which will be deducted each month from your bank account.

Paying down your debt is also extremely important. Although this can be difficult to do, it is more manageable if you take it on a step-by-step basis. First, stop using your credit cards. Then, come up with a plan to pay the most on cards that charge the highest interest rate. Over time, you will see a marked reduction in your debt, which will make you feel proud of your progress while boosting your credit score.

If you are having trouble getting approved for credit because of your credit history, consider a co-signer for a loan or credit card. You will have to find someone willing to be equally responsible for any late or missed payments, which would damage their credit score as well. But if you use this opportunity responsibly, you can rebuild your credit score while also learning and establishing good credit habits. The biggest step, according to the experts: not borrowing more than you can afford to pay back, and making your payments on time.

Credit limits are also something to manage intelligently. Those who max out their credit cards can hurt their credit score. Keep your credit card balance at or below 35 percent of your credit limit, advises USAToday.com. Consumers with the best credit scores tend to use about 7 percent of their available credit, but 10 to 20 percent is within a safe range, says the website.

Finally, maintaining a diverse mix of different types of credit can boost your score. This could include a mortgage, home equity line of credit, auto loan or credit card. And of course, make the payments on time so you build a positive history!

By following these tips, even if your credit has taken a hit in the past, you can get back on the road to good financial health and use credit effectively.

If you’d like more information about preparing your credit score for home ownership, now is the perfect time to reach out to your favorite real estate agent to be connected with a financial professional like Brent.

Posted on

Owning vs Renting

Does Your New Year’s Resolution Include Owning Your Home?

Brent Lucas of Guild Mortgage, M Realty’s featured partner, details the benefits of owning your home versus renting.

Nearly a third of households are still renting. If you’re one of them, you could be paying a hefty price.

Estimates for 2015 are soaring. Analysts predict that growth in rents will outpace home values in 2015 due to skyrocketing rental demand. The combination of young adults renting longer, more young adults moving to Portland, and families needing to rent after losing their home to foreclosure has increased the rental market demand… and with higher demand comes higher rental prices. In fact, renting may be COSTING you a bundle.

Let’s look at an example…

If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.

And speaking of having nothing to show for it, how about any improvements you might make to a rental property? It’s not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what… all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.

With convenient  down payment options  still available for qualified buyers, affordable home prices and low interest rates, the very same money could have been used toward home ownership.

Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment-including property taxes and insurance-of around $2,200. Assuming a 25% tax bracket, after your tax benefit this would be equivalent to the average amount spent on rent during the same period.

And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After five years, the $300,000 mortgage could be reduced to $279,000, potentially adding $21,000 to your net worth!

But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up next April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have less tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all year, interest free.

Visit www.irs.gov and use the IRS withholding calculator. This very handy tool can quickly show you the impact that a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor.

Don’t fall victim to the national headline hype. Remember, buying a home is a big step, but it is almost always one in the right direction.

If you’d like to learn more about how home ownership might be the right fit for your current situation, now is the perfect time to reach out to your favorite real estate agent to be connected with a financial professional like Brent.