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Does Homeowner Insurance Cover Renovation Damage?

by Amy McLeod Group


Part of the thrill of a renovation is dreaming up a brand-new look for your home. The best part of the process is, of course, walking through the finished rooms and settling into your new space.

But that dream can quickly turn into a nightmare if any damage occurs during the process. Falling ladders, broken pipes, and scratches on the hardwood floor are all snafus that can delay the process and cost you serious dough. In these scenarios, who is responsible for the damage? Will your insurance cover it?

“A home insurance policy will cover damage to your home in most cases, even if it’s related to renovations,” says John Espenschied, owner of Insurance Brokers Group in Chesterfield, MO.

“Rewiring the electrical system, updating the plumbing, adding a room addition—all of these come with potential risk to the existing property.”

That's good news; however, "in most cases" doesn't guarantee you're covered. Here’s what you need to know before you start that renovation project.

Where to find out what’s covered

For the details about your coverage, you’ll need to check your home insurance policy document. Your insurance company usually mails a physical copy every year, and it should also be available online when you log in to your account.

“Your policy document will outline what is covered, the applicable exclusions to be aware of, and any specific requirements pertaining to construction, renovations, and other situations where your home’s use or occupancy changes," says Stefan Tirschler, product and underwriting manager at Square One Insurance Services, which serves the United States and Canada.

When you find your policy, refer to the "causes of loss" section, saysKevin Foley, CPA, CPCU at PFT&K Insurance Brokers in Freehold, NJ.

“The dwelling is usually covered for all risk of direct physical damage, unless one of the exclusions apply.”

Before the renovation starts

Don't let a single wall be torn down until you've called your insurance company.

“You may need to update your policy, or buy extra coverage, if necessary, to extend coverage to the work,” Tirschler says. “If you’re renovating your bathroom and investing $15,000 into labor and materials, your home’s replacement cost should be adjusted to match this new cost.”

Without this pre-renovation step, the value of your improvements may be uninsured and, in this case, you would have to pay out of pocket for any repairs.

What’s covered during a renovation

Foley says that if the damage is not named in your insurance policy, then it's not covered. So what is typically covered?  Fires, explosions, water damage, and thefts.

“Renovations would be covered for the same perils as the rest of the dwelling coverage, as long as the policy is updated to do so,” says James Fleming of Country Financial in Bend, OR.

The same goes for any work performed inside the house.

“If the contractor caused a fire, broke a window, left a hole in the building, dropped a ladder on your dining room table, your insurance covers it,” says Foley.

What’s not covered

"If you don’t like the work, there’s no coverage for that,” says Foley. “If it’s really poor work and you need to have it done over, you won’t find coverage in your policy, but I would recommend filing a claim with your contractor's general liability carrier.”

Tirschler agrees that damage caused by faulty workmanship is generally not covered by your policy.

“This is because home insurance policies are designed to cover sudden and accidental direct damage, not to provide a warranty for work performed by manufacturers and contractors.”

However, depending on the cause of the damage to your home, another option may come into play.

“If a contractor caused damage, most likely your home insurance company will pay for repairs quickly and then subrogate, or seek recovery of payment, from the contractor or their insurance company for damage,” says Espenschied.

Damage to your neighbor’s property

Let’s say that during the course of the project, your neighbor’s property accidentally sustains damage. Does your insurance cover that? Once again, it depends!

If you were negligent, for example for not removing a tree that you knew needed to be removed, your homeowner’s liability would cover you, according to Tim Surber, owner of Tim Surber State Farm Agency in Yakima WA.

But suppose your contractor causes the damage.

“Since the contractor was the cause of the damage, the contractor's commercial insurance policy would be responsible for the neighbor's home damage,” Espenschied explains.

Tirschler agrees that the contractor is responsible for compensating the neighbor.

“Your home insurance policy covers your own liability, not your contractor’s liability for accidental damage to others’ property.”

Your contractor should have a commercial general liability insurance policy to cover any accidents that may happen on the job.

“Request that your contractor have their insurance agent fax or email a copy of this insurance certificate directly to you, as confirmation that it is in force,” says Tirschler.

In fact, he says your home insurance provider may even request this certificate from you in advance of the renovations.

“To help protect yourself against negative circumstances, make sure your contractors are licensed, bonded, and insured," Tirschler says. "Carefully review any guarantees or warranties they offer, to make sure you are satisfied with how they plan to stand behind their work.”

Contact The McLeod Group Network at 971.208.5093 or [email protected] for ALL your Real Estate needs! 

By: Realtor.com, Terri Williams

8 Home Improvement Hacks That Won't Break Your Back

by Amy McLeod Group


Part of the adventure of owning a home is tackling a few home improvement projects. But now that it's fall, what if you don't want your last few warm weekends swallowed in renovation hell?

The solution: knowing which home improvements can be done quickly, with minimal effort. And that's where this article can help!

Below are eight home improvement hacks that won't break your back or your bank account. Read on to reclaim your weekend, while still renovating your way to domestic bliss.

1. Pressure-wash your home's exterior

One of the easiest ways to give your home's exterior a face-lift is to clean it. And to be honest, there's just something satisfying about aiming a blast of water at a surface and watching it come clean, with no scrubbing or elbow grease required.

"Pressure-washing is safe for brick, concrete, masonry, wood, and siding," says Kealia Reynolds, an editor at House Method. (Avoid pressure-washing painted surfaces, asphalt roofing, and stained wood.) Plus, you can pressure-wash most homes in under two hours.

You can generally rent pressure-washers for $50 to $100 a day at your local home improvement store. Just note that pressure-washing is different from power washing: Power washing removes extreme dirt, grease, and moss from hard surfaces—think driveways—that can withstand high heat and pressure.

2. Caulk your first-floor windows

Most window-frames are made from wood, vinyl, or metal, which expand and contract over time. This causes old caulk to crack and open small openings where air can flow freely into your walls.

"Focus solely on caulking your first-floor windows—to save time and avoid having to balance on a ladder," says Teris Pantazes, co-founder of Settle Rite, which helps sellers prepare post-inspection repairs in Maryland.

Sealing up holes properly insulates your home and reduces your energy consumption, by keeping heat rising instead of escaping on the ground floor.

Caulking is not only an easy job that might take 10 minutes per window, it's also piecework.

"You can do one or two windows at a time, as you feel up for the task," says Pantazes.

Here's more on how to seal windows and other areas of the home.

3. Fake new countertops

​thehandymansdaughter.com

Vineta Jackson of The Handyman's Daughter plans to remodel her kitchen in a few years. "But I didn't want to live with my ugly blue countertops for that long," says Jackson.

So she covered the countertops with heavy-duty, faux-granite contact paper. Not only did it take only an hour, but the whole job also cost less than $50.

"And it held up great and is still going strong after three years," says Jackson.

4. Use painting shortcuts

If painting a whole room seems like too much work, try just painting your door frames, doors, and baseboards. This will freshen up your room in a quarter of the time of a full-on paint job (plus you'll save a ton on paint).

"Paint door and trim in an accent color you already have in the room," says Marty Basher, home organization and improvement expert with ModularClosets.com. You can also simply paint one wall in a room to add some color and interest.

Next up: kitchens. We all know changing the color of cabinets can breathe new life into a drab kitchen space, but painting them all is a lot of work. So go two-toned with your cabinets.

Paint only the bottom half under your countertops, says Kate Gailunas, interior designer and owner of N-Hance Wood Refinishing.

If you have light floors and countertops, go for dark colors (or vice versa). Think navy blues, with whites, pastels, and wood, or gray with bold colors.

5. Update outlet and switch covers


Photo by MS Colours Inc.

An easy and inexpensive improvement that refreshes a room's appearance is to replace dirty, crusty switch-plate covers with an upgrade from the standard plastic ones.

"If it isn't in your budget to replace them all, refresh your old ones," says a licensed real estate agent and all-around DIYer Kimberly Blaker.

Remove the covers, soak them in water, and then scrape off any old paint.

"Then simply spray-paint them with a metallic or colored hue, and in an hour, they'll be ready to put back on," says Blaker.

6. Refinish your bathtub

"Instead of buying a new tub for hundreds of dollars, refresh your old porcelain, ceramic, or fiberglass tub’s finish," says Michelle Felux, a DIY home renovator at BreakingDowntheBox.com.

You just need an epoxy kit for tubs, which will run you about $30 at the hardware store, an abrasive cleaner, tub repair product to fill in holes (about $20), sandpaper, and some caulk.

Prep your tub by removing the hardware, and then clean it with the abrasive cleaner. Next, repair the tub’s imperfections with your tub repair product and sand it smooth.

"Finally, mix up the epoxy and paint it on in two thin coats, letting each coat dry thoroughly," says Felux.

Wait three days before running water in it, and then caulk to seal it—you'll have a tub that looks brand-new!

Here's more on how to paint a bathtub.

7. Stick on a wood accent wall


timberchic.com

A fast and easy upgrade to your home is to create an accent using real reclaimed wood planks that you can peel and stick.

"Wood planks are easy to install and, in just a few hours, will instantly transform the look of any room in your home," says Tom Shafer, founder of TimberChic.com.

The planks, which come in lengths of 1 or 2 feet, can also be used for creating interesting walls, ceilings, doors, beams, and columns. And they are right on trend (just ask Joanna Gaines).

8. Swap out ceiling-fan blades

If your ceiling fans are looking decrepit, there's no need to buy a whole new unit. Not only are new fans costly, but swapping out the whole thing also usually means calling in an electrician.

"Instead, try this cost-effective and easy fix: Buy a package of new ceiling fan blades that fit your existing motor," says Blaker. Your ceiling fans will look as good as new again.

Contact The McLeod Group Network for ALL your Real Estate needs! 971.208.5093 or [email protected] 

By: Realtor.com, Margaret Heidenry

Stop Making Excuses! Busting the Most Common Reasons for Not Buying a Home

by Amy McLeod Group


Owning a home means you can build equity, take advantage of tax deductions, and partake in a little something called the American dream. For the past couple of years, the U.S. homeownership rate has hovered around 64%. But there's also a considerably large pool of renters in the country who have plenty of reasons for not buying. And some of those explanations are totally legit: Financial, economic, or personal limitations can prove that now is not the right time to buy. But we know an excuse when we hear one.

We get it—investing in real estate is a huge commitment. It's scary and exciting all at the same time. But what if buying actually is in the realm of possibility?

Think of all of the reasons you've ever given for not getting into the real estate game. Now allow us to poke holes in those theories.

We asked real estate agents to weigh in on the most common reasons people give for not buying a home—along with their counterarguments to these statements. If you do your research and everything checks out, purchasing property could be totally feasible.

'I don’t have enough for a down payment'

According to Jonathan Self, a Realtor® at Center Coast Realty in Chicago, most people who say they don’t have enough for a down payment have no idea how much money they would even need.

“Most people who tell me this have not spoken with a lender—it's rare for people to go to a lender before their agent,” he says.

So, the first step is to find a reputable lender. This can help you set your goals and put you on the path to homeownership.

Yes, there's certainly a chance you won't have enough for a down payment. Yet, on the other hand, you might not need as much money as you think you do. Or, your financial snapshot will qualify for loans that don't require a large down payment. But you’ll never know unless you reach out to a lender.

'I need to save more money'

For some, it makes sense to wait and save for a down payment, future mortgage payments, or home repairs. But as home prices edge higher, so do rent costs. That's why buying might be a better decision than renting.

“The rent you’re paying could be converted to investment in equity,” says John Manning, managing broker at Re/Max on Market in Seattle.

Talk to a lender to see if you qualify for a mortgage. Most agents are willing to match potential buyers with mortgage professionals.

“There are mortgage products for almost every financial scenario,” Manning says.

'I’m locked into my lease'

This is a common excuse, especially among first-time home buyers, according to Heather Sims at Ebby Halliday Realtors in Dallas. “My response is always, 'Let's find out what the penalty is for breaking that lease.'”

She says there’s often no penalty at all if your property management company is able to find a tenant to rent out the unit.

“Other times, it'll be one month's rent. In the grand scheme of things, that's not very much given how much money you're saving (and investing) by buying a home with a reasonable mortgage rate,” Sims says.

In some situations, the sellers will need to lease back the home as they search for a new home. In these instances, Sims says, it’s easy for buyers to recoup the cost of breaking their lease.

'I might move away'

Many of us haven't found our forever town or city yet. That's fine. The possibility of relocation is a valid reason for holding out on purchasing a home—unless you’ve been saying that for years. The truth is, not investing in property could mean you're leaving money on the table.

In some areas, mortgage payments are comparable with paying monthly rent. If that's the case in your neighborhood, it might be wise to buy.

“Even if you have to get out of town before your four to five years of equity has built up to help you break even, you could rent [out] the home and continue to get equity from the tenants," says Self.

'I’m waiting the market out'

It’s a seller’s market. Or is it a buyer’s market?  Buyers often use this confusion as an excuse to wait out buying a house because they believe they'll be able to get a better deal in the near future. Markets are cyclical, and it is usually prudent to purchase when there are more sellers than buyers.

"However, there is a good chance your money isn't doing much for you in your savings account,” Self says. “No one has a crystal ball, but I know people who have been waiting for years so they can jump in at the right time.”

Manning agrees: “Many people will never manage to outsave market appreciation and can lose purchasing power if interest rates trend upward.”

'I’m looking for the perfect house'

Everyone is looking for the perfect home, but if you’ve been searching for years, and you’ve viewed hundreds of homes to no avail, you may need to tweak your expectations. It’s one thing to prefer a move-in ready home over a fixer-upper, or three bathrooms over two, but sheer perfection is hard to find.

“From my experience, buyers who are looking for a perfect house will never find it, because a perfect house doesn't exist, regardless of the price,” says Russell Volk, a Realtor at Re/Max Elite in Huntingdon Valley, PA.

If a house has eight of the 10 features on your wish list, it's seriously worth considering.

Thinking about buying a new home? Contact The McLeod Group Network at 971.208.5093 or [email protected] to start your search today!

By: Realtor.com, Terri Williams

The Feeling You Get from Owning Your Home

by Amy McLeod Group


We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful and compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, that feeling of safety and security you gain from owning your own home is simultaneously one of the greatest and most difficult to describe.

Frederick Peters, a contributor for Forbesrecently wrote about that feeling, and the pride that comes from owning your own home.

“As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize the space; it touches a chord even more fundamental than that.

Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiate not only pride but also a sense of arrival, a sense of being where they belong. It cannot be duplicated by owning a 99-year lease.”

Bottom Line

Owning a home brings a sense of accomplishment and confidence that cannot be achieved through renting. If you are debating renewing your lease, let’s get together before you do to answer any questions you may have about what your next steps should be, and what is required in today’s market!

Starting the search for your new home? Let the professionals with The McLeod Group Network help you find your dream home! 971.208.5093 or [email protected]

By: KCM Crew


If you're a homeowner who takes pride in staying on top of interior design trends, you've no doubt been busy lately. High-end kitchen island? Check. Living wall in the living room? Sure thing! And you've most certainly got a Chip and Joanna Gaines-inspired farmhouse sink or shiplap lurking somewhere, too.

Sorry to break it to you ... but those trends are très passé. The rest of the world has moved on, and they're decking out their homes with way hipper stuff than that.

Relax, your friends at  realtor.com  are here to help! Just feast your eyes on four of the hottest, hippest home trends we've seen lately.

Kitchen islands with beds

Kitchen island with bed

iStock; realtor.com

Kitchen islands have been getting bigger and more souped up than ever. This so-called "hub of the home" can now incorporate sinks, ovens, breakfast bars, charging stations, and far more. But let's be honest here: All that kitchen multitasking can leave home chefs feeling pooped. And alas, if there's one thing kitchen islands lack, it's a place to lay your head, much less your whole body.

But that's about to change with the kitchen island's newest accoutrement: a sleeping bunk!

That's right, thanks to a stowaway mattress incorporated just underneath the counter, now you can take a power nap as you wait for your pasta water to boil. You can lounge longitudinally while you slice and dice onions. Guests who hover around your island can now really kick back with that glass of merlot, or just crash for the night if they've had one too many.

This may explain why this home feature has popped up in the kitchens of party-hard celebs including David Hasselhoff, who says, "In the past, I had to choose between staving off hangovers with sleep or a bacon cheeseburger. But now, I can do both at once!"

Indoor yards

Fun for the whole family!

iStock; realtor.com

For years, we've all been bringing the indoors outside, with outdoor kitchens and fully decked al fresco living spaces. So get ready to flip the script. Are you wishing you could enjoy the great outdoors from the comfort of your couch? Well, now you can, by rigging up your home with an indoor yard. In-floor irrigation systems now enable homeowners to go beyond a few potted plants and have wall-to-wall grass beneath their feet—all without the hassles of inclement weather, nosy neighbors, mosquitoes, or other outdoor annoyances.

Due to the added privacy, indoor yards have really taken off with celebs, including Angelina Jolie ("It's so natural and earthy") and even Barack Obama, whose Portuguese water dogsSunny and Bo, "were confused at first," he admits. "Although these indoor lawns are rigged with drainage systems so canines can relieve themselves inside, I had to 'house train' them again, only in reverse. They eventually caught on, particularly once I installed a few bushes."

Wall-to-wall wallpaper

Wallpaper wall-to-wall

Getty Images

From florals and metallics to textures, the wallpaper trend is truly taking over. But get ready for the next level.

Although many choose to paper an accent wall, this hot new trend sees paper covering not only the traditional four walls, but also the ceiling, floor, furniture ... sometimes even pets and family members!

Celeb fans include Kim Kardashian West—who might like to bare all when it comes to her wardrobe, but wants her walls completely covered at home. Kicking hubby Kanye’s minimalist style to the curb, the reality star supposedly has designers scrambling to order rolls upon rolls to paper the 15,700-square-foot Los Angeles estate she and Kanye bought for $20 million in 2014. Reportedly, their kids, North, Saint, and Chicago, have pajamas and bedspreads that match the wallpaper in their rooms.

"It can be a bit dizzying sometimes, and it's frankly even hard to find them now," Kardashian West admits. "But it's worth it. Now I never have to ask, 'Does this go with that?' ever again."

Farmhouse furniture straight from the barn

Hay, ya!

iStock; realtor.com

The modern farmhouse style has been all the rage since Chip andJoanna Gaines' show "Fixer Upper" hit the airwaves and developed a devoted following. They have their own home line at Magnolia, Target ... yet some think those aren't quite farmhouse enough.

Enter their newest venture: real farmhouse furniture, straight from the barn to you! Think: hay bale coffee tables. Side table butter churns. Manger beds. Of course, Chip and Jo have incorporated these elements into their own home too. Just ask Chip: "We swapped our regular alarm clocks for a rooster. Since there's no snooze button, he really gets us up!"

So if you love living on the very cutting edge of design, you're probably eager to incorporate these into your home. But before you do that, maybe check the date on this article first.

Contact The McLeod Group Network for all your Real Estate needs! 971.208.5093 or [email protected] 

By: Realtor.com, Liz Alterman

6 Changes to Make After a Move to Start Off on the Right Foot

by Amy McLeod Group

You're moving! And along with a new address, you get to enjoy a fresh start at life. OK, maybe you can't easily erase everything from your past—nor would you want to—but it is a good opportunity to break old habits that weren't helping, or were costing you money without much payback, or were causing more headaches than they solved.

For instance: If you usually have a landline phone, consider cutting the cord and going cellular. Or since you're changing your mailing address, sign up for paperless delivery of your important bills. Here are six other ways to change up your home life and daily routine for the better.

1. This time, actually unpack all those boxes

When people move, they eventually get tired of unpacking after a few weeks (and who can blame them?). And once you've unpacked the essentials, it's easy to take a break from unpacking—never to go back.

"Whether it's four more boxes or 14 more, you don't want them sitting in that same spot until your next move," says Kelly Tenny, content and social media manager for Zippboxx.com, a moving and on-demand storage company. So after you've moved households, make a realistic goal of when you'd like to have everything unpacked—and stick to it!

2. Purge unused subscriptions and other auto-renewal fees

"When you move, it's a good idea to look at all the deductions from your bank account," says agent Katie Messenger of Keller Williams Louisville East.

Services with auto-renewals you simply forgot to cancel—like that streaming channel that you subscribed to for just one show, or a magazine that goes straight to the recycling bin—can add up to a lot being deducted from your bank account.

"When my wife and I moved, we went through our budget line by line," says Mark Aselstine, founder of Uncorked Ventures. "We found subscriptions and subscription boxes—admittedly mostly for the kids—were starting to pile up unused."

Aselstine canceled the subscriptions his family no longer used and kept track of their savings.

3. Cut the cord—or consolidate streaming services

"When my wife and I looked into cable TV plans in the area we were moving to, we were met with plans that totaled $130 per month," says Aselstine. He realized the pared-down local internet service provider cost only $35 a month; that, combined with Netflix for $10 and other cheap add-ons, could meet most of his TV needs for much less.

Already subscribed to streaming services? Make sure you use them all; if not, it's time to pare down, or go back to good ol' public TV! That's what photographer S.J. Brown did when she moved into a house that had an antenna.

"For the price of one month's cable, I had it reconnected and am now enjoying free television," Brown says.

4. Switch to energy-efficient lightbulbs and dimmers

You'll be handling all of your lamps when you move, so why not make the swap to energy-saving LED lightbulbs? These lightbulbs can help the typical home save about $1,000 over 10 years. And while dimmers are best known for their ability to improve a room's ambiance, these devices also reduce energy consumption and cut costs on your power bill, leaving more money in your wallet.

5. Resolve to keep records of all of your home improvements

Even though you just moved, you never know where life is going to take you. A surprise job offer may have you selling your new house sooner than expected.

"Having a record of when you fixed something at a glance is hugely helpful," says Messenger.

If you bought your current digs, those records will also help with capital gains. And from a budgeting perspective, you'll know when the last time major systems such as the furnace, air conditioning, or roof were maintained, so you can budget for future upkeep.

6. Start a new cleaning ritual

"If you've been in a house for years, chances are you learned to live with some deferred maintenance–type things," says Messenger. When she moved, Messenger made it her mission to always keep her house tidy in case someone stopped by for a surprise visit.

"It's challenging with pets, but I feel much more pride in my new home knowing I'm taking care of it," she says.

Another bonus? Messenger found doing a few small things daily meant her free time wasn't spent on massive cleanup days.

Are you searching for your new home? Let's the experts on The McLeod Group Network help you find it! 971.208.5093 or [email protected].

By: Margaret Heidenry, Realtor.com

The famous quote by Walt Whitman, “A man is not a whole and complete man, unless he owns a house and the ground it stands on,” can be used to describe homeownership in America today. The Census revealed that the percentage of homeowners in America has been steadily climbing back up since hitting a 50-year low in 2016. The homeownership rate in the first quarter of 2018 was 64.2%, higher than last year’s 63.6%.

Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context:

“The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of new renter households has fallen for four consecutive quarters. Owner-occupied households grew by 1.345 million from a year ago, while the number of renters actually fell by 286,000 households.

The fact that we now have four consecutive quarters where owner households increased while renter households fell is a strong sign households are making a switch from renting to buying. This is a trend that multifamily builders, investors, and landlords should take note of.”

In a separate article comparing the rental population in America to the homeowner population, Realtor.com also concluded that the gap is now shrinking:

“The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households, the fourth consecutive quarter in which the number of renter households declined from the same quarter a year earlier. That could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.”

America’s belief in homeownership was also evidenced in a survey conducted by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

The results:

  • 43% said homeownership was essential to the American Dream
  • 48% said homeownership was important to the American Dream
  • Only 9% said it was not important

Bottom Line

Homeownership has been, is, and always will be a crucial part of the American Dream.

Contact The McLeod Group Network today to find your dream home! 971.208.5093 or [email protected].

By: KCM Crew

NOT Owning Your Home Can Cost You a Lot of Money!

by Amy McLeod Group

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Realtor.com recently reported that:

Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option… as people get more savings in their pockets, buying becomes the better option.”

What proof exists that owning is financially better than renting?

1. In a previous blog we highlighted the top 5 financial benefits of homeownership:

  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.
  • No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

Let’s make your dreams of homeownership a reality! 971.208.5093 or [email protected].

By: KCM Crew

Whether You Rent or Buy, Either Way You’re Paying a Mortgage!

by Amy McLeod Group

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Contact The McLeod Group Network today to discuss your options!  971.208.5093 or [email protected].

By: KCM Crew

The Benefits of Homeownership Go Beyond the Financial

by Amy McLeod Group

Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.

Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:

  • Consistent findings show that homeownership does make a significant positive impact on educational achievement.
  • Several researchers have found that homeowners tend to be more involved in their communities than renters.
  • Early studies of homeownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that are also associated with positive health outcomes and positively correlated with homeownership.

Bottom Line

Homeownership means something more to people and their families than just the financial considerations.

Let The McLeod Group Network help you achieve your dream of homeownership. 971.208.5093 or [email protected].

By: KCM Crew

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Contact Information

Photo of The McLeod Group Network Real Estate
The McLeod Group Network
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.