5 reasons to Buy

I recently wrote an article that explained in detail why thinking of your home as an investment is simply faulty logic. So, by the title of this post, it may seem that I'm contradicting myself. Not so. While I don't advocate considering "investment value" when purchasing a home, there are still plenty of valid reasons to own instead of rent, especially in the current low rate environment. Let's take a look at why homeownership simply makes more sense than renting, especially over a long-term basis. Reason 1: Mortgages are cheap Even though rates have spiked about 1% over the past year or so, at a 4.5% interest rate, 30-year mortgages are still very cheap on a historical basis. This is significant because in many cases, it is actually cheaper on a monthly basis to own a home than rent. In the market I live in, $350,000 gets you a relatively basic three-bedroom home, and I live in a hurricane-prone area, so we have to pay flood and windstorm insurances, which brings the total mortgage payment on a $350,000 house to about $2,400. The same house would easily command $2,700 per month in rent. Reason 2: Your life, your way Want to get a new family pet? Go for it! Want to landscape your yard, put in a pool, add on another bedroom, or remodel your kitchen? These are some things that are out of the question in virtually any rental situation and can be as easy as applying for a building permit if you own your own home. If you're a dog lover, finding an apartment can be a nightmare. Many of my friends who rent their houses are stuck with kitchens that look like something from a 70s TV show, and their landlords seem to be in no rush to update anything. The freedom to make your home truly your own is one of the best reasons to buy a house. Reason 3: Credit This may seem somewhat unimportant, since most people in a position to buy a house already have very good credit. Regardless, a mortgage will certainly report to the credit bureaus, and a rental company will almost certainly not. There are few items on a credit report that demonstrate financial responsibility and general stability in life better than a long history of on-time mortgage payments. Reason 4: Equity Having equity that can be tapped into if necessary is a big plus for homeowners. Having equity in your home is not only important to help pay emergency expenses, home improvements, or your kid's college tuition, but simply having the equity available to you makes it much easier to get a loan for almost anything else. If you have, say, $75,000 in home equity, a bank will feel much better loaning you $20,000 to buy a boat than if you were renting an apartment. Reason 5: Not an investment, but still much better than renting for your financial health Even though I've said your home is not a good investment, at least in the traditional sense of the word, it is still exponentially better for your long-term financial health than being a lifelong renter. Let's say you buy a $200,000 house, and you put $40,000 down. This would make your mortgage payment $810.70 for 30 years at a 4.5% interest rate. At the end of the 30 years, you own the home free and clear, and hopefully it's appreciated significantly in value. If you pay the same amount in rent, after 30 years, you'll have paid a total of $291,852 in housing payments. This is also a glorified scenario, as rental rates usually rise over time, making your actual total even more. At the end of 30 years, you'll have absolutely nothing to show for all of the money you spent. So, while owning your home only provides 3%-5% annual returns on a long-term basis, this is still far better than paying out hundreds of thousands of dollars and not building any equity whatsoever. Homeownership is still the way to go! John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Florida Economy

Florida consumer confidence up from year ago Floridians kept their rising confidence in the economy with a University of Florida survey showing spirits were higher than a year ago. Consumer confidence throughout the state remained in December at 77, the same as the revised November reading and three points above last year. Floridians' confidence in the economy has appeared to rebound after five months of dropping spirits from June until October. More from the Orlando Sentinel and UF News. John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Latinos & New Year’s Resolutions

With their preparation for the holidays the Latino culture also prepares for some rituals, customs and traditions that are going to help to augur a New Year. Depending on the country or origin these traditions may vary, but one of the most commons in general is the 12 grapes and the 12 wishes. At 12 o’clock (or midnight), with the 12 chimes of the clock they will eat 12 grapes while asking for their 12 wishes. But what does this have to do with real estate?
One of those 12 wishes, you will have the opportunity to help to fulfill. The wish to buy a new home!
During the year we gave you a series of blogs talking about the Latino Community; the different segments within the community and some ideas of how to help them. It is our resolution for the next year to continue giving you information to make sure that the Latino Community will be able to fulfil one of those 12 wishes. The opportunity to be homeowners!

Latinos & New Year’s Resolutions

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Rates should go up

What it Means to the Consumer In an article in MarketWatch today, Lawrence Yun, the Chief Economist at NAR, explained that sellers looking to move-up (to a better school district or larger home) “need to realize that it could be more challenging a year from now.” Yun stated the average 30-year mortgage rate currently hovers at 4.3%, but that could rise to 5% or 5.5% next year. What it Does NOT Mean to the Housing Market Some reports will now claim that housing prices will have to drop as interest rates begin to rise. There is no historical evidence of this. Below is a chart showing the last four instances of mortgage rates rising dramatically and what happened to home values at the time. John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Tapering Begins!

Tapering Begins!

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Today's Prices Compared to Peak [INFOGRAPHIC]

Today's Prices Compared to Peak [INFOGRAPHIC]

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Florida Jobs

What you need to know about Florida today 12/12/2013 Florida posts largest job gain of year in November Last month, Florida posted its largest job gain of the year, according to payroll processor ADP. The Sunshine State added 19,450 private-sector jobs during November, more than any other state except Texas, which tacked on 28,030 positions, the ADP data released on Wednesday showed John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

14,027 Houses Sell Every Day in the U.S.!!

14,027 Houses Sell Every Day in the U.S.!!

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Flood Insurance Rates about to Skyrocket?

Flood Insurance Rates about to Skyrocket?

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Average Days on the Market [INFOGRAPHIC]

Average Days on the Market [INFOGRAPHIC]

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Characteristics of Mentally Strong People

1. They Don’t Waste Time Feeling Sorry for Themselves Mentally strong people don’t sit around feeling sorry about their circumstances or how others have treated them. Instead, they take responsibility for their role in life and understand that life isn’t always easy or fair. 2. They Don’t Give Away Their Power They don’t allow others to control them, and they don’t give someone else power over them. They don’t say things like, “My boss makes me feel bad,” because they understand that they are in control over their own emotions and they have a choice in how they respond. 3. They Don’t Shy Away from Change Mentally strong people don’t try to avoid change. Instead, they welcome positive change and are willing to be flexible. They understand that change is inevitable and believe in their abilities to adapt. 4. They Don’t Waste Energy on Things They Can’t Control You won’t hear a mentally strong person complaining over lost luggage or traffic jams. Instead, they focus on what they can control in their lives. They recognize that sometimes, the only thing they can control is their attitude. 5. They Don’t Worry About Pleasing Everyone Mentally strong people recognize that they don’t need to please everyone all the time. They’re not afraid to say no or speak up when necessary. They strive to be kind and fair, but can handle other people being upset if they didn’t make them happy. 6. They Don’t Fear Taking Calculated Risks They don’t take reckless or foolish risks, but don’t mind taking calculated risks. Mentally strong people spend time weighing the risks and benefits before making a big decision, and they’re fully informed of the potential downsides before they take action. 7. They Don’t Dwell on the Past Mentally strong people don’t waste time dwelling on the past and wishing things could be different. They acknowledge their past and can say what they’ve learned from it. However, they don’t constantly relive bad experiences or fantasize about the glory days. Instead, they live for the present and plan for the future. 8. They Don’t Make the Same Mistakes Over and Over Mentally strong people accept responsibility for their behavior and learn from their past mistakes. As a result, they don’t keep repeating those mistakes over and over. Instead, they move on and make better decisions in the future. 9. They Don’t Resent Other People’s Success Mentally strong people can appreciate and celebrate other people’s success in life. They don’t grow jealous or feel cheated when others surpass them. Instead, they recognize that success comes with hard work, and they are willing to work hard for their own chance at success. 10. They Don’t Give Up After the First Failure Mentally strong people don’t view failure as a reason to give up. Instead, they use failure as an opportunity to grow and improve. They are willing to keep trying until they get it right. 11. They Don’t Fear Alone Time Mentally strong people can tolerate being alone and they don’t fear silence. They aren’t afraid to be alone with their thoughts and they can use downtime to be productive. They enjoy their own company and aren’t dependent on others for companionship and entertainment all the time but instead can be happy alone. 12. They Don’t Feel the World Owes Them Anything Mentally strong people don’t feel entitled to things in life. They weren’t born with a mentality that others would take care of them or that the world must give them something. Instead, they look for opportunities based on their own merits. 13. They Don’t Expect Immediate Results Whether they are working on improving their health or getting a new business off the ground, mentally strong people don’t expect immediate results. Instead, they apply their skills and time to the best of their ability and understand that real change takes time. John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com

Hispanic Population Growth

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: holbrook66@msn.com www.johneholbrook.com