Preferred Properties of Texas

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Ways Homeowners Can Use Their Equity

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Your equity can be a powerful tool to help you reach your homeownership goals. Your equity may have grown significantly in the last year. Here are four ways you can make the most of your growing equity.

1. You Can Use Your Equity to Buy a Home that Meets Your Needs

You might find that you don’t have enough space to live in, and it is time to move. You might have too many square feet and want something smaller. Whatever your situation, you can use your equity to purchase a home that suits your needs. A larger home may offer more space for loved ones or remote workers. On the other hand, downsizing can help you save time and money.

2. Move to the Place of Your Dreams

It may be time to move to a different area if the size of your house is not a problem but your current location is. Perhaps you love to vacation in the mountains, on the beach or anywhere else, and want to live there all year. Perhaps the distance between your family and friends is too great and you want to bridge it. Whatever the reason, your home equity could help you move to the place that you truly want.

3. Start a New Business

You can also use equity to fund a new venture if you aren’t ready to buy a home. Although it is not recommended for homeowners to use their equity for unnecessary expenditures, using your equity to invest in a business you are passionate about could help grow your nest egg.

4. Spend money on education

It doesn’t matter if you are a parent or a friend who is preparing for college, or if you plan to return to school, the idea of paying for higher education can seem daunting. You can use a portion or all of your equity to help pay for higher education.

Bottom Line

You can use your equity to help you reach your goals. Talk to a trusted advisor to find out how much equity your home has and start planning your next move.

 

Original blog: https://www.keepingcurrentmatters.com/2021/11/22/4-ways-homeowners-can-use-their-equity/

Don’t Let Your Property’s Value Decrease

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Don’t Let Your Property’s Value Decrease

November 9, 2021

Daniela Gonzalez

Property value has many moving parts, especially for something that itself doesn’t, well, move. The factors involved in determining property and home value are sliding scales of perception, priority, and personality. What is important to some may be a deterrent to others, so coming to a consensus on the value of a property has numerous considerations.

How Is Home Value Determined?

Size

This one is pretty straightforward – larger homes are more expensive because building bigger homes is more expensive. Depending on where you live, there is a varying cost per square foot to build a home (this has huge variations across the country based on many factors like availability of building material, contractors, remoteness, terrain, etc.).

Age

The age of your home can contribute both positively and negatively to your home value. We tend to place a high value on historical or character homes – classic homes from the early 1900s that have been well maintained and upgraded. Conversely, homes from the mid-1900s forward that have not been updated are not seen as having high value. If your house would not fall into the historical or character home category, renovations and updating are necessary to maintain home value.

Location

Some location elements are primarily about personal priorities—some people prefer being closer to amenities, downtown cores, schools, nightlife, wilderness, hiking and biking areas, etc.

Other locational elements are less subjective. For example, we can confidently say that most of us would prefer not to live next to a dump or landfill—or a meat processing facility, power generation plant, or fire station. A property nearby could have a beautiful home and exterior landscaping, but we would likely still value it less than the same home in a more picturesque location.

Features

The features of your home and property contribute hugely to its market value. What the term ‘features’ encompasses is vast and also highly personal. Here are some features that contribute to the value of your home and property:

  • Home gym (including flooring, mirrors, etc.)
  • Home theatre room
  • Feature fireplace
  • Indoor or outdoor water features
  • Oversize windows
  • Smart home features
  • Finished/heated garage

Safety

Neighborhood safety is a significant factor in the value of your property. Not only is it undesirable to consider living in an area with a higher crime rate, but it will likely cost a potential buyer more in the long run too. Home insurance companies factor in the crime rate in your area and the likelihood that you’ll make a claim due to a burglary or property damage and will give you a higher rate if you live in a high crime area.

Neighborhood

You know the ones, the good neighborhoods where everyone wants to live. It might not be because the houses are beautiful and gigantic; maybe it just has a good vibe or many great locally-owned restaurants. Whatever the reason, some neighborhoods are more desirable than others, and just having your home located there can positively impact your property value.

Tree Value

Tree value can reference both the trees on your property specifically, as well as the trees on your street in general. Having old and well-cared for trees provides a beautiful natural element to your property that people are drawn to, enough so that it has a noticeable effect on your property values.

School District

If you have children going to a public school, this is probably something that you’re already keenly aware of. It’s also an excellent example of how priorities are on a sliding scale regarding property value. If you don’t have children, or they attend or will attend a private school, then you’re much less likely to be willing to pay more to be in a desirable school district.

What can decrease my home’s value?

Crime Rate

Many potential buyers are savvy about this these days, and they will check on the crime rates in neighborhoods they’re interested in purchasing in. So not only are those baddies sneaking around and damaging property or stealing bad for you, they’re bad for the overall value of your home now and into the future.

Neighborhood

Gentrification is a tricky thing when it comes to property value. It relies on an overall increase in property values throughout a neighborhood to bolster the value of individual properties.

Suppose you renovate a home in a less-desirable area with the idea that the neighborhood itself is becoming more gentrified, and that doesn’t happen as quickly as you were hoping (or at all). In that case, you have a property that’s valued is negatively impacted by the general area, not by the characteristics of the home or property itself.

Location

There’s a good reason for the old “location, location, location” adage that you’ve likely heard many times before—it’s still relevant! So many factors go into what a desirable location is or isn’t, and they can be tricky to navigate. Here are a few of the important ones to consider:

  • Cemeteries – generally speaking, very close proximity to a cemetery will work against your home value.
  • Highways – noise from roads is a detractor; while easy access is suitable for property value, it depends on your location.
  • Hiking trails – if you’re a hiker, this could be a suitable property feature; however, many people do not prefer to have a reason for multiple strangers to be close to their home year-round.
  • Construction – Construction brings noise, people, dust, and traffic. None of these are suitable for your property value.
  • Property history – This can be anything from being in a floodplain to having a violent crime committed on your property at some point. Some states have mandatory disclosure laws about certain things, while others do not, so the impact on your property value will depend on the history and where you live.

Tips For Avoiding a Low-Value Home

Be informed – Know what’s happening in your neighborhood and city. It might not be the most scintillating activity, but keeping an eye on your city or town council’s activity and any proposed infrastructure changes or construction permits can be a great way to help you stay ahead of the game.

Economic factors – The state of your local and national economy are one of the biggest drivers in real estate pricing. You could have an adorable home with perfect curb appeal, but your property will be valued less if you try to sell in a down economy.

Building regulations – This is a significant factor if you’ve made any additions to your home. Most municipalities require permits for building additions, and if they are not correctly acquired, it is likely to be detrimental to your property value on resale.

Hire a realtor – A realtor can focus their trained eye on areas that you can maintain or improve the home value that you might not have thought of. We get used to our homes and don’t see them with the critical eye that a potential buyer might, so having a realtor in your corner can help you keep ahead.

How To Increase Your Home Value

Remodel – It’s a big undertaking, but if you want to maintain your home value and stay competitive in the resale market, remodeling is the best way to keep your home current. That’s not to say that you have to gut your home down to the studs every ten years, but making comparatively small upgrades like creating a more open concept floor plan or putting in more oversized windows (even just repainting) will help retain property value.

Add features – Maybe you finish the basement or take that spare bedroom and create a home gym; anything you can add to your home that a future buyer would find attractive will work in your favor. This is also a great way to engage a real estate agent—they know what people are looking for in a home and can give you great advice on what would be an attractive feature to add to your home.

Good maintenance – Little things add up, and they can quickly amount to enough things that, together, decrease your home value— if you need to have a portion of your fence replaced, no problem. Same with new gutters, some new landscaping, or exterior paint. Taken individually, these things are not likely to decrease your property value much. But all together, they definitely will. Keeping those pesky little tasks in check is one of the best ways to make sure that you don’t have a mountain of upkeep to do when you go to sell!

Now that you have a clear picture of the potential pitfalls that could decrease your property value and how to avoid them, you’re all set to make sure that you get the most out of your property when you choose to sell.

Do Ponds Add Value To Your Property?

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People love to live near water bodies where they can swim or recreate. Some people prefer the ocean or a lake to be their favorite body of water. People are building ponds to access the water on their property, so that they don’t have to leave their land. This trend is a good investment. However, landowners will need to find out how much a pond can add to their property before they dig up their land.

A pond can add value to your property by creating beautiful scenery and recreational opportunities. A pond could be a good idea if your property has large acreage that is not yet developed and located where a pond can easily be dug. Most ponds built in recent years have a size of one-half to two acres.

You may want to stop developing your land if your property is small or not well developed. Foundation problems could result from digging a pond near your home or other structures.

Although a small pond can be a great addition to a property’s value, it will still need to be maintained. Common maintenance costs for owning a small pond include:

  • Vegetation removal
  • Monitoring water quality
  • Health studies on flora and fauna and their treatment

Although all ponds require some maintenance once they have been established, there are ways to avoid significant maintenance costs.

A pond built on your property can be very disruptive. You should consult a professional to determine if it is a good idea. The professional will take a look at the soil and land to provide further information about the development process. After the professional has appraised your land and given you permission to proceed with the pond development process, it is important to meet with the professional to discuss the details and spend time designing and building the pond that you desire.

Experienced professionals will anticipate potential problems when designing a pond. You can also have your design modified to ensure that the pond fits your property.

You will need to ensure that your property is able to support a pond before you consider installing one. A pond will likely increase the property’s overall value if it can be supported. The addition of a pool will increase your property’s overall value. It will also provide you with additional recreational opportunities, which can help you attract more buyers when you sell. A pond will need to be maintained. These maintenance costs can be reduced significantly by planning and designing well.

Original article at  https://land.us/2021/07/does-a-pond-add-value-to-a-home/

 

Owning A Horse Ranch

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It is not easy to own and operate a horse ranch. How much does a horse ranch run? Owning a ranch comes with upfront costs such as taxes and development fees. However, you will need to purchase horses and register the horse ranch as an accredited company. The majority of the costs involved in owning a horse farm will be related to the purchase of horses.

Horses can be expensive, and those who have one know how costly they can become. Horse ownership comes with the most expensive costs:

  • Costs of purchasing
  • Vet expenses
  • Farrier costs
  • Feed/board costs
  • Costs of equipment/tackling
  • Training costs

When you decide to purchase a horse, the first thing you need to consider is the cost of purchasing the horse. The cost of a horse will depend on its breed, age, and bloodline. A show-level Hanovarian, for example, can go up to $50,000. The average cost of a standard riding horse is between $3,000 to $5,000. You might be able buy a horse if you can foster one from a rehabilitation facility.

The next expense you’ll have to pay once you own a horse is the cost for vet and farrier visits. The horse vet administers vaccines and shots to your horse. They also care for your horse in case of injury or sickness. The farrier is responsible for trimming your horse’s hooves and equipping them with horseshoes.

A typical horse vet will charge between $50 and $75 to visit the farm and $200 to $350 to administer any vaccinations. Your horse’s hooves grow faster in summer than they do in winter. For a standard farrier visit, expect to pay between $30 and $70 for a trim or $50 to $200 for shoes.

Hay and grass will make up the majority of any horse’s diet. Hay is paid for, while grass is usually free. Hay will typically cost between $5 and $15 per square yard. To meet the standard nutritional requirements of horses, hay and grass must be supplemented with grain. A horse owner can expect to pay $15-$50 for a bag of grain, depending on the quality and size.

You most likely want to buy a horse so you can learn about the sport and ride it. You will need to purchase tack, equipment and training if you decide to ride your horse. Equipment and tack costs can vary depending on the horse’s age and quality. Training will also cost more than all the equipment. A lesson in riding can range from $50 to $250 on average.

A horse is a costly investment. If you have more than one horse, this expense can be even greater. An average cost to own a horse each year is between $2,000 and $50,000. If you plan to board your horse at a different horse ranch, the overall cost will need to be adjusted.

If you have a horse ranch, you won’t need to include boarding costs in your answer to “How much does it cost to purchase a ranch?”

If your looking to buy a horse ranch contact our office to speak with one of our knowledgeable agents. We are here for you!

 

Take Advantage of Today’s Low Rates Before They Begin to Rise

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Mortgage interest rates in today’s realty market are at or near record lows. If you have owned your home for many years, and haven’t refinanced recently, it’s likely that you have an interest rate on your mortgage that’s higher than the current average.

Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, remote work means they need additional space. Some people may choose to move to a less expensive area or downsize. These are great options if you’re thinking about moving.

Today’s rates are less than 3%. But experts predict in the coming years, rates will rise.

Take advantage of the opportunity to get a lower interest rate on your mortgage if it is higher than average. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.

As mortgage rates rise so does your monthly payment.

Even a slight increase in rate can make a big difference in your monthly mortgage payment.

To keep your monthly payments the same, you will need to consider a home that is less expensive.

Whatever your reason for wanting to move up or down, this is the best time to do it. Even a slight change in interest rate can make a huge difference to your purchasing power.

Consider refinancing if making a move now doesn’t feel right. If you want to reduce your monthly mortgage payments and remain in your home, refinancing may be a good option.

Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, contact Preferred Properties of Texas today to discuss your options.

Preferred Properties of Texas

(254) 965-7775|Contact Preferred Properties of Texas