Key Tips to Choose the Right Location for Your Second Home

When you plan to buy a second home, your goals could vary. You may desire to get an investment property, have a vacation getaway to enjoy your favorite destination, or get hold of a weekend home where you can escape from your dull daily routine. If you’re looking for a property in New Jersey, you could consider companies that say ‘we buy houses in NJ for cash and sell it fast’ for a quick deal that’s cost-effective too. Be it in Union County’s Fanwood, Garwood, or Kenilworth or Morris County’s Kinnelon, Butler, or Chatham, such companies will surely help you find a suitable property that’s just right to become your second home. But before you go house hunting, you should have a clear idea of your needs based on the reasons for buying a second home. Let’s take a look into the details.

Questions to consider when buying a second home

If it’s an investment property, you should try to get answers to the following:

• What’s your level of understanding of real estate? Will it be enough to become a good landlord?
• Will you advertise and manage the property on your own? If yes, will you have enough time to handle all the tasks involved in the process?
• If you want to hire someone to advertise and manage the property, will the costs be lower than your rental income? What services will you need from such professionals?
• Does your chosen area have an active rental market? Have you researched the vacancy and turnover rates? Do properties there appeal to long-term renters?
• How fast are the property values in your chosen area appreciating? And are they increasing steadily?

If it’s a vacation getaway, the questions to ponder upon include:

• What are the different types of holidays that you enjoy the most? Is it hiking through the mountains, exploring new neighborhoods, relaxing on the beach, or skiing? Do you prefer a colder or warmer climate?
• Which destination do you frequently travel to? Do you have a favorite destination that pops up in your mind the moment you think about the most memorable and enjoyable vacation?
• How much time do you plan to spend in your vacation home every year? How far or close should it be from your primary residence?
• How accessible should it be from your primary residence? And how much will it cost? Would it involve air travel or road travel?
• Who’ll maintain the property in your absence? Will it be your friends or family in the area? Or would you hire a local property management service?

In the case of a weekend home, you should consider the following:

• How close is it to your primary residence? Is it somewhere people in your area are likely to go on the weekends?
• Will it be quick and easy to travel to? Or will the distance become a headache in the future?
• How often do you plan to visit or stay in your weekend home? Will it be a place just for spending the winter weekends or the summer ones?
• What activities will your weekend home facilitate or what amenities will it provide that your primary residence doesn’t?

Finding the right property

Once you get answers to the questions above, you should use the steps below to find your ideal second home in New Jersey:

• Research the neighborhood to find the present property values, their appreciation rates, the area’s crime rates, property taxes, nearby grocery stores, and schools, etc.
• Visit the area often or rent a home close to where you would like to buy to feel how it would be to live there.
• Ask the locals about what they like in the neighborhood and if they face any problems living there. Apart from getting inside information about the location, talking to the locals would help you decide if they’re the kind of people you would want to live close to.
• Hire a real estate agent who’s knowledgeable about the local market and can take care of all the nitty-gritty involved to make the home buying process stress-free.

If all these appear to be too much to handle, you can make the buying process quicker by choosing a company that says ‘we buy houses in NJ for cash and sell them fast’ as they sell properties faster and much more seamlessly than traditional sellers. In case you choose to buy the house from the collections of a company that helps homeowners that keep on thinking about how to sell my house in NJ quickly, the above-mentioned tips would be highly effective as well.

How to Buy That Perfect House in a Seller’s Market

In a seller’s market where there are more buyers than the number of homes put up for sale, buying your dream home could be a tough task. If you thought your full-price offer would be accepted easily, think again because it’s unlikely to happen. Does it mean you should give up on your hope of buying your dream home? Definitely not!

Those struggling to find an answer to ‘how do we buy houses in a seller’s market?’ can benefit from these tips mentioned below.

1. Make a clean offer

You should try to make your offer as clean as possible. This means it shouldn’t depend on you receiving the sale proceeds of another home or come with some other financial constraints. The offer should ideally not have any seller concessions too. Seller concessions refer to the things a buyer may seek beyond the offer price, such as help with the closing costs, etc.
You may even choose not to add traditional contingencies like an appraisal, loan, and inspection. But this doesn’t mean you can’t safeguard your interests. For instance, you could get your loan entirely underwritten. This way, you’ll complete the total loan process with your lender prior to making an offer on the property. Finally, when you make an offer, you’ll be able to put down your loan contingency confidently, if you wish to, with little to no risk.

2. Don’t ask for the excluded items
If the seller has already excluded items like that magnificent chandelier or those comfy garden furniture, asking for them could weaken your offer. This is especially true where the seller has received a few more comparable offers where the prospective buyer isn’t asking for these privately-owned items. So, you should avoid asking for such personal property. Instead, stay focused on what matters more – winning the bid on the house and finally, buying it.

3. Send the seller a personal letter

Not all sellers care only about the price they’ll get. Even sellers who plan to ‘sell my house for cash quickly’ or look for a company like Cash Buyer New Jersey may be somewhat choosy about the kind of buyer who’ll be buying their home. This is especially true for those who’ve lived in the property for several years and have a strong emotional attachment to it. As a result, these people prefer to sell their homes to someone who’ll care for the property. You can leverage such emotions by writing a personal letter to the seller where you give a brief overview of yourself and talk about the reasons that have made you fall in love with the house. You should also emphasize the reasons why you would like to make it your home. Knowing their home would be in good, caring hands could make sellers, who are emotionally attached to their homes, decide to accept your offer. Thus, sending the seller a personal letter could improve the chances of your offer being accepted, especially in case there’s close competition among multiple buyers to buy this house.

4. Put down a larger EMD
By putting down a larger earnest money deposit (EMD), you can prove you’re a reliable buyer. Usually, EMDs are approximately 1% to 3% of the home’s purchase price, on average. This amount is typically held by the real estate broker. The EMD you make will contribute to the down payment of your home and the closing cost. Thus, by putting down a larger EMD, you can indicate your genuine intentions to buy. However, you need to be sure of buying the home before putting down a larger EMD. Else, your EMD could be forfeited by the seller as compensation for his wasted time in case you’ve signed the contract earlier to buy but end up not buying it.
We hope the tips above would make your home buying process a breeze in a seller’s market.

Is Selling Your Home At Auction A Good Idea?

Many homeowners prefer to sell their home at auction instead of contacting a leading we buy houses company like Cash Buyer New Jersey or advertising something like “I want to sell my house”. Some of them hope to get a better value of their home due to a bidding war while some others consider it an effective method to sell their house fast. Regardless of the league you belong to, you need to be aware of the advantages and disadvantages of selling your house at auction to make an informed decision. We’ve created this guide to help you understand whether or not you should sell your house at auction.

Types of properties generally suitable for auctions
If your home is in a poor condition and needs some repairs, an auction could be an effective option to sell it fast because auction bidders usually don’t try to avoid fixer-uppers. Also, if the house is unmortgageable or a short lease is there, an auction might be a better option to sell it.

Advantages of selling your home at auction
When it comes to auctioning your house, several costs remain associated with it – from the entry fee and a certain percentage of the sale price as a commission fee to legal fees. The following advantages of auctioning a home should help you understand why some homeowners prefer this method despite the cost associated with it.

• Fast sale: A deadline is set by most auctioneers for entries prior to the auction date, which helps them get sufficient time to complete marketing activities such as circulating the auction catalog. On the auction day, if your house is successfully sold, the buyer is obligated to finish the sale process by a fixed date. Therefore the total time taken for the sale of your house becomes much shorter than traditional methods of selling.
• Opportunity to get a better price: Auction is all about competitive bidding and hence if your home has something truly interesting, bids from multiple buyers can easily drive the price up. This is something you cannot find in any other method of selling.
• Different types of buyers: Auctions are typically attended by different types of buyers – from general buyers who’re looking to buy a home to experienced investors who can handle any problems your home might have. When you approach a traditional real estate agent, the chances of putting your home in front of such a mix of buyers are pretty low.

Disadvantages of auctioning your home
Despite the above benefits, there’re certain downsides to auctioning your home as well. First of all, if you’re presently residing in the home, you’ll have to make an alternate living arrangement quickly and vacate the property so that the buyer can start working on it or move in. Second, considering the auction house is receiving considerable fees from you, you’d want the home to be properly marketed. However, the reality is some auction houses don’t market all the properties appropriately. And if this happens, it’s unlikely that you’ll have many potential buyers present at the auction. And if your home doesn’t sell at the auction, ultimately the auction house might suggest you re-enter it into another auction.

Closing thoughts
As you can see, property auctions have a fair share of major disadvantages. Therefore, if you’re looking to sell the home quickly without paying the fees associated with an auction, you should contact a leading we buy houses company such as Cash Buyer New Jersey. It’ll not only help you get the best deal in the market but offer all kinds of professional support as well, making the selling process a smooth one.

Key Factors That Determine the Cost of Home Inspection

While many homebuyers think the cost of a home inspection is an unnecessary expense, in reality, it’s an important step in the process that can save them from potential future hazards. Whether you’re buying the home from a leading we buy houses company like Cash Buyer New Jersey or from an individual who has placed an advert stating “I want to sell my house”, you must not try to avoid a home inspection. In this post, we’re going to discuss the factors that determine home inspection cost. But before that, a few lines on home inspection.

Importance of a home inspection
You can always get a basic idea of the features offered by the house by giving it a walk-through but you may not be able to obtain enough details and information. Here’re the key reasons why you need to hire a professional home inspector.
• An experienced, knowledgeable home inspector can provide you with real insights into structural components. As major structural problems take significant amounts of time and money to repair, identifying them in advance helps you make an informed decision and avoid unexpected hazards.
• If you’re buying a home that hasn’t been maintained properly, a home inspection becomes very useful. You’ll be able to understand what replacement projects or repairs you’d need to undertake and budget accordingly.
• If there’re known issues that would significantly cost to fix, you might be able to negotiate the price.

Factors that determine the cost of a home inspection
While the cost of a home inspection may depend on several factors, here’re three of them that mainly determine it.
• The service provider: When you’re searching for a home inspector in your locality, most likely you’ll find that different inspectors charge different prices. Some inspectors charge more due to their considerable experience and expertise. Remember, you don’t necessarily need to hire a home inspector charging the lowest fee. Ideally, you should shortlist a few, review their experience and whether or not they’ve any certifications related to the field, and hire based on what you’ve found out. If you’ve got a strict timeline to meet, ensure that the inspector will send the report your way by that time.
• Location of the home: Home inspection costs don’t drastically vary based on locations but they differ. For instance, if you’re buying the home in an area where home inspectors are in high demand, you may have to pay more for an inspection.
• Square footage: If you’re buying a bigger house, the inspector will need to check more area, and hence, the cost will be more than what it’d be for a smaller home.

Understanding a specialized home inspection
A general home inspection may not cover things like chimney inspections, septic or sewer inspections, roof inspections, termite inspections, foundation inspections, mold testing, radon testing, asbestos testing, etc. For these, you’d need to opt for a separate specialized home inspection and the cost will be an additional expense. Many home inspection companies offer both kinds of services. See if you can find such a company that offers a package price as it’ll lower the total cost of the inspection.

Summing up
While a home inspection may cost you a significant amount of money, it can help you save much more in the long-term. When searching for a home inspector, try to ask your friends and family members for a good referral. It’d also be a good idea to contact a reputable we buy houses company such as Cash Buyer New Jersey as it can easily direct you to a seasoned and unbiased home inspector, who knows everything about homes, and residential safety.

5 Cost-Effective Ways to Make Your Home Look More Expensive To Sell It Fast

Homeowners, who are planning to sell their house, often consider home improvement projects to add value to their homes. Typically the key objectives include selling it fast and getting a better price whether the property is sold to an individual or to a company with the tagline “we buy houses” such as Cash Buyer New Jersey. However, the reality is spending a huge amount of money on such projects isn’t a feasible option for many homeowners. If you too belong to this league, here’re five inexpensive ideas that would help make your home look more expensive and in turn, save you from spending months thinking “how to sell my house fast?”

#1 Consider a minimalist approach
If your house has lots of furniture along with a huge number of accessories, it naturally feels overwhelming and small. The ideal way to address this is to inspect each room thoroughly and see whether or not every piece of furniture located there is actually required. For example, if there’s an extra table that’s only used to keep junk items, probably you should get rid of it.

#2 Add affordable accessories
When you’re minimizing the number of furniture and accessories, it’s also important to incorporate some inexpensive yet interesting pieces in the rooms to give your home a stylish look. Be sure to choose accessories that can actually create an upscale and luxurious look so that you can sell the house quickly to a reputable “we buy houses” company like Cash Buyer New Jersey. For instance, you can place some fashionable pillows in the seating area to create a comfortable feel. Adding some curtains near the ceilings is also an effective idea to make your home feel more luxurious. You don’t need to spend a hefty amount of money to get these accessories. Instead of buying them from physical stores, try shopping online and you’ll most likely get more options and much better deals.

#3 Paint outdated furniture
While applying a fresh coat of paint to all the walls of the house is one of the time-consuming and expensive tasks, painting unattractive furniture can help your home get a new look quickly and in a cost-effective way. Take a thorough look at the older pieces of furniture in the house. See if there’s any mismatch between the color schemes of your modern and outdated furniture. For example, the kitchen’s color scheme might contradict the colors of the older cabinet. For anything like this, painting the outdated furniture with neutral shades like white or gray will help transform their look.

#4 Add greenery and flowers to your home
Adding some greenery to your home not only makes it more comfortable but helps it get an upscale look as well. Along with greenery, try to incorporate some fresh flowers in the home to add an attractive pop of color to the rooms. However, stay away from buying new flower arrangements as it often becomes an expensive affair. Instead, try to arrange your own bouquet by purchasing local garden flowers.

#5 Upgrade existing hardware
There’s no need to undertake a complete kitchen renovation project, for example, to give your home an expensive feel. Revisit your bathroom(s), kitchen, and seating area to identify outdated pieces of hardware. Then visit a local hardware store to buy stylish yet inexpensive pieces and replace the older ones.

Summing up
Adding elegant details to your home to help it stand out doesn’t necessarily need to be expensive. Simply try these five inexpensive yet highly effective ideas and you’ll surely get a good advantage when it comes to selling your house to a “we buy houses” company like Cash Buyer New Jersey or an individual.

Key Things to Keep In Mind When Moving During COVID-19

Though vaccinations have started, the threat of COVID-19 still looms large. If you have an upcoming move, you could be asking yourself if the time is right. If you or a member of your household suffers from chronic health conditions, such as cancer, lung or heart disease, type-2 diabetes, or obesity, you’ll be at a higher risk of health complications if affected by the coronavirus, advises Mayo Clinic. Making a move is risky for the aged people as well, especially those in the 85+ age group. Ideally, you should avoid moving home in these situations and wait until vaccines have been extensively distributed and Covid-19 restrictions are lifted. However, it may not always be possible to delay your move. For instance, after wondering ‘how do we buy houses cost-effectively’ for long, you may have finally got a good deal from a company like Cash Buyer New Jersey or someone ready to ‘sell my house for cash’ that you simply don’t want to miss out on. Thus, if you must move house now, you’ll need to adhere to some extra precautions to keep yourself as well as others safe.

Preparing for your move during Covid-19
According to the U.S. NIH (National Institutes of Health), coronavirus can survive on plastics for up to 72 hours while on stainless steel and cardboard surfaces, it can live for up to 48 and 24 hours respectively. This makes it crucial that you sanitize your boxes and items to be packed to ensure you and your movers are safe. Disinfecting high-touch or communal surfaces and your belongings are equally important. To sanitize your home the right way, you can follow the CDC guidelines. Additionally, ensure you wear a disposable pair of gloves to prevent the spread of the virus and other harmful germs. You may even choose reusable gloves provided you’re wearing them exclusively when cleaning and disinfecting surfaces and areas to steer clear of COVID-19.

Buy all your cleaning and packing supplies in one go
Make a list of all the cleaning and packing materials you’ll need to buy for your move. Then, make a solitary trip to the store to buy them all at one go. By avoiding frequent trips to the store, you’ll lower your chances of coming in contact with others, thus reducing your health risks.

Don’t hesitate to buy a bit extra to avoid running out of your cleaning or packing supplies. Since some retailers have still got restrictions on buying cleaning supplies beyond a certain limit at a time, you could face problems when trying to stock up on cleaning supplies. But you shouldn’t have problems buying some additional packing materials. However, if that sounds like an uphill task or you want to avoid a trip to the store, you could try placing your order of packing materials and storage boxes with home improvement stores like The Home Depot or even with Staples, U-Haul, Penske, etc. All of them will ship the order to your doorsteps, thus letting you save a lot of time and effort, not to mention reducing the health risks triggered by in-person contact as well.

Keep soap and hand sanitizer easily available
Washing your hands is one of the most effective ways to protect yourself and even others against Covid-19, says the CDC. This makes it crucial to ensure you wash your hands with soap and water before and after touching communal or high-touch surfaces or things like the doorknobs, faucets, sinks, etc. If you can’t get soap and water, make sure you’ve got a bottle of alcohol-based hand sanitizer (with more than 60% alcohol) to use. While packing your things, during the move, and even after getting into your new home, make sure you have either soap and water or a hand sanitizer easily available.

Final words
Handling your entire move on your own may not always be possible. In case you engage a moving company, make sure they follow the COVID-19 safety guidelines strictly. Starting from getting a price estimate to scheduling the initial contact and tracking the move, you should restrict in-person interactions as much as possible and use digital solutions instead. With all these tips, your move during Covid-19 shouldn’t be a herculean task.

Top Home Improvement Projects Where Your Kids Can Get Involved

If there’re kids at home, it’s advisable to schedule home improvement projects during times when they’re busy in school while the work is being carried out. However, it may not seem to be a feasible option always. You may have a strict timeline to relocate to another city and you want to sell the house as soon as possible while getting a better price for it. Maybe you’re thinking of publishing an advert mentioning “I want to sell my house” or contacting a reputable we buy houses company like Cash Buyer New Jersey to facilitate a quick sale. Fortunately, there’re some hassle-free home improvement projects that can be done with kids to increase the value of your home.

Here’re four such simple yet effective projects that you can consider.

#1 Spruce up old furniture
You already know that giving outdated furniture a new look can improve the beauty quotient of a room. Choose a bookcase or shelf and add beautiful shelf lining to it with your kids. First, measure the dimensions of the furniture and cut the shelf liner appropriately. When the liner is added to the furniture, use something like a plastic gift card to smooth out the bubble that might have popped up during the work. It’s also possible to add a bit of style or color to the bookcase/shelf as shelf liners are available in many styles and colors to suit different tastes.

#2 Create a garden
Creating an indoor garden is one of the easiest home improvement projects that can be done with kids. Visit a garden center and ask your kids to select small, decorated containers. Remember to buy a watering container, the seeds, and enough amount of soil as well. Once you’ve picked up all the required things, load the containers with soil, and plant the seeds. Before you begin the project, be sure to choose the right plants that you’ll be able to grow in your garden easily. If you think regular watering might be an issue, choosing desert-dwelling plants would be a good idea.

#3 Transform an unused room
Do you have a room in the house that nobody ever uses? If yes, you can easily make it an attractive spot with the help of your kids. First, clean up the room together and get rid of all the unwanted items. Once the room is cleaned and cleared, ask the kids about what they’d like it to be furnished with. If they cannot come up with an effective idea, you can use your own. From a reading room and an activity center for the children to a home office and an extra bedroom – a lot of things can be done based on your imagination and preferences.

#4 Reorganize your home
Tidying up your home not only makes it look neat helps it feel more spacious as well. Simple things like moving things around or cleaning dirty sinks using a homemade solution can dramatically improve the feel and look of a home. When buying new items to perform the project, define a budget, and ask your kids to choose things according to it. It’ll help them learn money management and how to properly care for the home.

Parting thoughts
Doing the above projects with your kids will keep everybody engaged and entertained while increasing the value of your home. There’re also several home improvement projects including decorating a mailbox, creating a book nook, decorating an outdated fireplace, etc that you can do with the kids. Just be sure to keep any hazardous elements and tools away from the kids to avoid any potential danger.

Should You Go For an Older House or A New Build?

Probably you’re thinking of selling your present house to a top-tier we buy houses company such as Cash Buyer New Jersey that facilitates quick, hassle-free sales and buying a new one. Once you’ve accumulated funds for the new home, the key question appears as what kind of house should you go for – an older home or a new build one? Both options come with their fair shares of advantages and disadvantages, which you must consider before making a final decision. Let’s take a look at how they can impact you.

Buying an old home
• In old homes, rooms are usually bigger with lots of storage as opposed to new builds where it’s generally small. Also, these houses often have more rooms and larger outside spaces.
• If you want to buy a house with traditional features like picture rails, a fireplace, detailed coving, etc, an old home is what you’d need to buy.
• If the previous owners of the house are elderly, it might not remain in perfect condition. It means you may need to undertake lots of renovation works – from re-wiring and renovating the bathroom and kitchen to modifying existing plumbing, among others.
• In case the house you bought requires several renovation works and you occupy it immediately after completing the sale, you’ll have to face the inconvenience of living while the work is going on.
• Maintenance of an older home might become considerably expensive especially if the products you’re looking for aren’t readily available in the market.
• Hidden surprises, unexpected faults, etc aren’t uncommon when it comes to buying older homes. So, you might need to set aside funds to deal with these.

Buying a new build home
• You may get the opportunity to select fittings and fixtures to customize the property according to your preferences.
• You don’t need to bother about cleaning or renovating anything – just move in and settle down.
• New build homes often have energy-efficient features such as airtight doors, insulated roofs, etc, which will essentially help you save on utility bills.
• New build properties usually come with a specific warranty period. So, if something goes wrong during that period, the builder will most likely be responsible to fix it. However, warranties are often limited in scope and hence, you must understand what they actually cover.
• Some new build properties are pretty small. Therefore, you’ve to check the space thoroughly to understand whether or not all your existing furniture would fit inside. If they don’t, you might have to search again for another home or get rid of some of your furniture.
• If the builder is inexperienced, you’ve to ensure what’s actually included in the home’s price. Is it offering flooring and carpets as standard? Will you need to pay extra for that high-end kitchen or that’s included in the price?
• Despite the energy-efficient features of new homes, you need to pay a significantly higher price than purchasing an older home from a reputable we buy houses company like Cash Buyer New Jersey.
• If the builder delays the construction work of the house, you may need to wait for a longer period of time to move into it.

Closing thoughts
Ultimately it comes down to your personal preferences whether you should buy an old home or a new build. If you choose the former option, be sure to purchase the property from a leading we buy houses company like Cash Buyer New Jersey to experience a hassle-free process. Even if you contact an individual seller by seeing his/her advert that states “I want to sell my house”, you should consult with a reputable real estate company to avoid future hazards.

Should You Rent Or Buy A New Home?

Whether it’s a good decision to rent or buy a home is a question that leaves most Americans undecided at some point in their lives. If you too can’t decide which the right choice is for you, you should weigh the pros and cons of both to make a decision confidently.

Pros of renting
• It’s more affordable: Buying a home involves making a hefty down payment, which is usually 20% of the property value in case you don’t want to add mortgage insurance to your list of expenditures. Compared to such huge costs, renting often appears to be a far more affordable choice.
• Avoid the additional expenses of buying a home: Your home’s mortgage payment estimate could be comparable to your monthly rent, thus making you think it’s better to buy a home. But other associated costs of owning a home, such as property taxes, homeowners insurance, maintenance expenses, closing costs, mortgage interest rates, etc. could be about 1% of the property value per year. Add to these the other unexpected costs like that of water heater, new furnace, etc., and renting would seem like a much better choice than buying a home.
• Skip tiring maintenance chores: Be it getting the furnace filter replaced or the gutters cleaned, home maintenance chores are labor-intensive and time-consuming. In contrast, you can just pick up the phone to get these tasks handled when renting.
• Flexibility and mobility: If you’re not sure where you would prefer to live 3 years down the line or if you would have enough money to pay for mortgage, insurance, etc., renting is preferable as you can quickly leave the house or even move to a smaller one. But selling your home and downsizing isn’t that easy. And if you wonder ‘how do I sell my house faster’, you may have to sell at a lower profit, or look for a company such as Cash Buyer New Jersey that says ‘we buy houses fast for cash’. Such options may take time, which could be disadvantageous if you’ve got a strict deadline to meet.
• Avoid financial and legal entanglements: Renting is preferable for many unmarried couples because they can move out quickly if the relationship sours or fails. But having bought a home would mean a messier break-up where complex financial and legal entanglements are involved.

Pros of buying
• Create your own asset: Paying your rent is just expenditure. Once that monthly check is paid to the landlord, the amount would never come back. But when you pay your monthly mortgage, you’ll be creating an asset of your own.
• Build home equity: You’ll be building home equity by paying your monthly mortgage. The money thus spent would come back to you when you refinance, sell, or take out a HELOC (home equity line of credit.
• Renting isn’t that affordable: At the first glance, renting may appear to be more affordable than buying a home. However, when you consider the multiple cost elements associated with it, such as the application fees, security and pet deposits, and renters insurance, it may no longer be that affordable. In contrast, buying a home lets you enjoy several tax benefits. For instance, you can typically deduct real estate taxes and mortgage interest from your yearly tax bill. You could even lower your tax liability by acquiring a Mortgage Credit Certificate (MCC) from your local or state government.
• Enjoy long-term rewards: Homes bought 30 years ago have almost always brought major financial gains for their owners via the equity they have built in their homes. Additionally, your home could act as a key contributor to let you maintain your lifestyle once you stop working because it would typically be your biggest asset when you retire.
Ideally, you should consider all the above factors to finally decide if it’s preferable to rent or buy a new home.

Reviewing the Key Advantages of Co-Ownership

National home prices have appreciated by 19% during the last decade but wages haven’t escalated at the same rate. For those who already own a home and wonder “what kind of profit I’d make when I sell my house”, this level of property price rise is good. But first-time homebuyers could be thinking twice before investing their money to buy a new abode. You could always buy a home quickly and cost-effectively from a company like Cash Buyer New Jersey. If not, you may think of co-ownership where you buy a home with a friend. However, before jumping at the prospect of owning your first home, albeit with a friend as your co-owner, or wondering ‘how do we buy houses’, you’ll need to evaluate the process and its benefits to decide if it’s really feasible to proceed.

Co-ownership with a friend – how does it work?
Unlike married couples, co-ownership with a friend needs you and your friend to determine how both the parties involved plan to structure their ownership. This refers to how you two will take and hold the title as owners/buyers. Co-ownership with a friend can be structured as either joint tenancy or tenancy in common.

Joint tenancy
When you and your friend hold the title as joint tenants, both of you must all get ownership simultaneously via the same deed and must have an equal amount of interest in the home. This form of ownership structure consists of the Right of Survivorship. Thus, in case a co-owner dies, his/her share of ownership would automatically pass to his/her surviving co-owner. This means the deceased co-owner’s heirs won’t inherit an interest in that property.

Though a co-owner’s interest in the property can’t be passed down to his/her heirs, he/she can transfer such interest to another person. But in such a case, that person may not get into the joint tenancy. Rather, that person would enter a tenancy in common ownership with the remaining co-owner, thereby bringing the joint tenancy to an end.

When you have a joint tenancy with your friend, you can’t sell your home without his/her consent. This is beneficial if your friend prefers to sell and you don’t. But if it’s the reverse, you could be at a disadvantage.

Tenancy in common
This form of ownership structure lets both you and your friend possess an interest in the property. Though such ownership could be divided into fractions or equally between the friends, the property itself can’t be. Thus, neither you nor your friend can lay claim to any specific part of the property.

Tenancy in common allows you or your friend to transfer or sell the home to another individual at any time without needing to obtain the other party’s approval. If you plan to sell the home while your friend doesn’t, this ownership structure gives you a lot of flexibility. However, it also puts you at risk in case the situation is just the opposite where your friend decides to force a sale irrespective of your requirements. You should also note that if a co-owner dies, his/her interest in the property gets passed to his/her heirs. Thus, the heirs of the deceased co-owner will enjoy the same control over the property.

Key advantages of having your friend as your co-owner
• Better chances of getting a mortgage: Both of you can combine your income and debts to improve your debt-to-income (DTI) ratio. This would make it easier to get your mortgage approved (provided both of you have a respectable credit score) and even enjoy better terms like a lower rate of interest.
• Ownership is affordable: By splitting all costs like monthly mortgage payments, repairs, utility bills, etc. 50-50, you can make it a lot more affordable to own a home.

Additionally, you can enter the housing market sooner by combining your assets with that of your friend. So, are you ready for co-ownership with a friend?

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