Many people get confused between home improvement and home repair. Home repair refers to addressing problems in your home that need to be fixed. Repairs may range from installing a new faucet in the bathroom, replacing the old kitchen stove, to replacing your electrical panel.
Even though many home repairs are “do it yourself”, some of them may require you to call in the professionals (like replacing the old stove and certainly your home’s electrical panel!).
Home improvement on the other hand refers to bettering your home, adding value to your home above and beyond repairing what is there now. This may mean adding on to your home and/or significantly upgrading its current look.
Often this is also referred to as remodeling. Common remodeling projects include adding an addition to the home (like another bedroom or a second story), remodeling the kitchen or bathroom, adding decking to the home and so forth.
Another way of thinking about repair versus improvement is the long term benefit associated with it. A basic home repair will give you peace of mind and restore something back to its original function and use. In general it will not add significantly to the value of your home.
A properly select home improvement project, on the other hand, will not only increase your enjoyment of the home but also add to its resale value. Bathroom and kitchen remodels are estimated to give you the highest return on investment (up to 90%). You may also qualify for some tax benefits due to your remodeling efforts, check with your tax professional!
Remodeling costs can be quite steep, hence establishing clear objectives and a budget prior to getting started will go a long way. Sticking to your budget also becomes so very crucial!
Many people find themselves going way over the original projected costs because they freely make changes mid project. At times changes may be necessary, but often they could have been avoided by thinking through the entire project before getting started.
©2006 Houses and Such
Yes, there are many different types of mortgages! There is the 30 year and the 15 year fixed rate, the adjustable mortgage (ARM), the adjustable with various timed adjustments, the adjustable that can be converted to a fixed, the interest only, the 125% mortgage, … and the list goes on. Confused yet? Good, if you’re at all sane, you ought to be!
Anyway, how do you go about deciding which of those mortgages would be the best for your situation? Well, as a close friend of mine always says:” It depends … ”. I just love those two little words!
So, let’s start out by asking a few questions?
How long do you plan on staying in the house?
What is the sale price of the house?
How much of a down payment will you make?
What are the current interest rates?
What is your credit rating?
What fees are associated with the mortgage?
What is the time frame for loan repayment?
What amount of loan payment is in your budget (you do have a budget, don’t you)?
Enough questions for now. In subsequent entries I’ll talk about the various considerations that most likely enter into your mortgage decision.
For now let’s start with: How long do you plan to stay in the house? I know what you are thinking (“I don’t know, I haven’t even bought the place yet!”)! It’s tough to answer that question, so give it your best guess.
Why is time frame important? If you plan on staying in your new home for a shorter period of time (let’s say3 to 5 years), it’s probably more important to you to have smaller monthly payments rather then to get the lowest possible interest rate.
Typically when staying in a house for a shorter period of time many go with an adjustable mortgage. At the same token, when planning on keeping the house (and the loan) for a long time, most opt to go with a fixed mortgage. After all, you know what you are getting into and won’t have any surprise payment increases when you least expect them.
©2006 Houses and Such. All rights reserved.
Thinking about buying a house? Don’t know where to start? I know, the process of selecting and purchasing a home can be outright overwhelming.
“So, where do I start” you ask? Begin the home buying process by determining what it is that you want and what it is that you have to have in a house. I suggest that you create two separate lists, one for each aspect.
Now get busy and list all that you would love to have in your new home: five bedrooms, five bathrooms, a totally modern kitchen, a big yard with a swimming pool, a wood fireplace insert, a central gas heating system, the 3car garage to the side of the house, a house on 5 acres … or whatever it is that you really would like to have in your new place. The point here is that you dream big. This will help you to flush out those things that are truly important to you. It does not necessarily mean that you will get everything on that list (sorry!).
Now, the next list: things you MUST have in your new home, or you will NOT be happy. Simply create all the items that are necessary for you to justify purchasing or moving up to a new home. Be as specific here as you can – you know what it is that you want. Write it down on paper!
Sit with your lists for a few days or weeks. Update them as needed and see how your ideal home will take shape. You will be amazed how this process of actively and creatively asking for what you want will set you on the right path to home ownership.
Next step: go out and look for your home that you have designed on paper. Good house hunting!
©2006 Houses and Such. All rights reserved.