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Displaying blog entries 11-13 of 13

We will cover the first 5 things every home buyer should know before purchasing a home in Colorado Springs and surrounding areas this week.  The first 5 things focus primarily on the many benefits of home ownership. 

  • Colorado Springs Homes For Sale1.  Tax Deduction / "Free Money" - Property taxes and qualified home mortgage interest are deductible on your federal income tax return.  A great built in savings for the year!
  • 2.  Investment - In most cases a home is the largest asset people have and many consider it one of the safest investments available.  Paying down your mortgage and appreciation of home value will create a major savings.  Just make sure not to use it as a piggy bank to buy depreciating toys (refinancing to buy a boat for example).  Make a goal to pay it off so you don't have a mortgage for when you retire.  If you like this idea, it may be worth getting involved in real estate investing on multiple properties.  Real estate investing in Colorado Springs is easier than you think.  It is no coincidence that many of the worlds wealthiest people in history have made their fortune in real estate. 
  • 3.  No Capital Gain Tax When Selling - A homeowner can currently exclude up to $500,000 of capital gain when selling their home if married filing jointly or up to $250,000 if single / married filing separately.  The home must have been the taxpayer's principal residence for 2 of the last 5 years (Always confirm with your CPA).
  • 4.  Principal Pay Down on Mortgage - A portion of each amortized mortgage payment goes towards paying down the principal on your loan.  Not only do you pay to stay but a portion goes to paying down your loan for a wonderful investment and built in savings.
  • 5.  Enjoyment of Ownership - A home is one of the few investments you can enjoy by living in it!  By far one of the best investments you can benefit from.  Make improvements and you can gain from both enjoyment and increased value.

Next blog post will include 5 more things every home buyer should know before purchasing a home so check back soon to catch all 15.

Saddleback Ridge HOA Lawsuit

by Alan Daniels

Saddleback Ridge Condos

The Saddleback Ridge HOA has decided to sue one of the five partnered developers who told potential homeowners and real estate agents during construction that the complex would have a pool and clubhouse.  The complex was built in 2006 and now the homeowners are stuck with a broken promise.  The trial is scheduled for January 11, 2010 and the HOA wants the developer to stand by his promise or pay $500,000 plus default judgment previously awarded the HOA.  The HOA's attorney claims that each of the 96 condo owners has lost about $5,000 in value due to the lack of the promised pool and clubhouse.

This is a prime example of things that can happen with new construction in Colorado Springs and around the nation.  I have seen builders/developers promise parks, community landscaping, trails and much more while breaking their promises at the end of the day.  This can be a negative while looking for new homes in Colorado Springs.  This is why it is extremely important to work with a reputable Realtor in Colorado Springs who can communicate the things to look for in a new home community.  Most good Realtors have experienced or heard about these issues with particular builders/developers and are happy to share their experiences with you.  

4 Reasons to Buy Colorado Springs Real Estate Now!

by Alan Daniels

Colorado Springs Real Estate

Many genuine home buyers are sitting on the sidelines these days deciding on when to get into the Colorado Springs real estate market.  In the end this decision will be based on many different variables depending on each person’s situation.  Here are 4 reasons why you may want to make a move on your choice of Colorado Springs homes right now.   

1) You can not time the bottom of the market.  Timing the bottom of the market is incredibly hard to do and often harder to resist.  Current housing inventory is at historical highs and mortgage rates are staying down, so you should definitely be able to find a great home with an experienced Colorado Springs Realtor.  You will find that many home sellers right now are pricing their homes very competitively!  The old supply and demand curve… more supply and less demand.  This curve is bound to shift sooner are later, so don’t be the one to wait for the seller’s market!  

2) Low mortgage rates.  Most economists agree that home financing will become more expensive in the future.  By now we have all heard our share of stories about financing woes even for well qualified people.  Currently, the 30 year loan is now roughly at 6.0% and most economists see it reaching 6.5% by the end of the year and up to a 7% forecast sometime in 2009.  Even if Colorado Springs real estate prices were to fall in the following months, the current interest rates end up saving money throughout the years of the loan.  

3) Don’t just by for a cheap price, buy in a good area.  Sure you might get excited about that great foreclosure price, but when you are buying a home, you are also buying the neighborhood.  If more than a few foreclosures have come up in one area, there most likely will be more.  They tend to be bunched in particular areas and this might not be the best recipe for stability in a neighborhood.  An old rule of thumb is to buy the worst house on the best block…not the worst house on a bad block.

4) Work with a great Colorado Springs Realtor that has experience and who can supply opportunities from the current market.  This I think just needs to be brought to attention since times are tough for many Realtors.  Make sure your Colorado Springs Realtor is not desperate and just steering you into a home to finally make a deal.  Sit down with your Colorado Springs Real Estate Agent to share your plans and get a good sense of whether they are looking out for you or just looking to get paid.  This market has opened up many opportunities that a great Colorado Springs real estate agent can share.

Displaying blog entries 11-13 of 13

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