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Should You Rent Or Buy Your First Home? July 6, 2009

Posted by minnesotarealty in MN Realty.
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If you’ve considered buying a Minnesota home after renting an apartment or condo for several years, you will probably need to overcome several psychological barriers to become completely comfortable with the process.

Many potential homeowners simply don’t take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you’ll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner’s insurance, and paying taxes and fees. If you’re interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed – by understanding some basic principles of home buying.

It’s a good idea to make up your own checklist of all the different payments involved with your prospective home. You can typically get a lot of this information from your realtor; ask them for average fees, taxes and maintenance costs for the home and create a spreadsheet of all the different elements involved. If you do this in a digital format, you can create side-by-side comparisons of each home you’re interested in so you have an accurate view of all the costs involved and the total monthly expenses you’ll be responsible for.

Author Ilyce Glink of ‘100 Questions Every First-Time Home Buyer Should Ask‘ explains that buying a home also means you’re buying into your local community, because you’re responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.

Next, you’ll need to do some extensive research about tax benefits. Home ownership usually does give you several tax advantages over renting, but this will vary significantly depending on your current income and the total amount of real estate property tax you will be paying each year.

The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you’ll get.

Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you’re not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.

If you’re not feeling settled in a particular city or neighborhood, buying a home may be causing a lot of anxiety. Make some solid decisions about where you want to settle and where you’re willing to relocate to in the long-term so you can make the best decision about your new home.


With The Right Attitude, Real Estate Can Make You Rich October 31, 2008

Posted by minnesotarealty in Minnesota Homes for Sale.
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There’s got to be a difference between the type of person who strike it rich and the average Joe, but what is it, really? This question is an important one, and it should be given the thought it deserves. There are plenty of easy, oversimplified responses, including, “Their family is rich,” “They won the lottery,” or “They have great careers.” But these factors can’t always be controlled by the individual experiencing them– is wealth really dictated by the luck of the draw?

Unfortunately for these people, however, being lucky isn’t all it takes to become rich. Robert Kiyosaki, author of the best-selling Rich Dad, Poor Dad books claims that being rich has more to do with how much money you hold on to than how much money you have coming in.

Kiyosaki’s father, the so-called “Poor Dad,” is a great example of a well educated man blessed with a great career who was nonetheless poor, because he couldn’t seem to keep any of the money he was earning.

Luckily for you, wealth doesn’t spring from the family into which you were born, or even from the job you work. These red herrings distract from the real determiner or wealth, which is simply one’s attitude towards money and the world.

Whether you ever become rich or not is determined, in large part, by nothing more than how you think.

Kiyosaki’s “Rich Dad” demonstrated the effects that one’s personality and attitude have on the way in which one earns and handles money using a graph called the Cash Flow Quadrant. This graph is split into four quadrants, labeled ‘E,’ ‘S,’ ‘B,’ and ‘I’– “employee,” “self-employed,” “businessmen,” and “investor,” respectively. Not only do these four categories show how a person earns his or her money, claims Kiyosaki, but they shed light on the way in which different individuals view the world.

Are you beginning to see? The people in the four quadrants are not there by chance; they are there because they experience life in fundamentally different ways.

According to Kiyosaki, the people who fit into these four categories are fundamentally different in their thoughts and emotions, and these essential differences drive individuals to behave differently towards their money.

Because of individuals’ innate natures, says Kiyosaki, they are drawn to different corners of the graph. This is because different people have different values, and will treat money differently based on these attitudes. A person who values security above other things will definitely be drawn to the ‘E’ corner of the graph, and the consistency is offers. There’s nothing wrong with that– if security truly is what you desire, a life spent as an employee will be satisfying and fulfilling. It is worth noting, however, that it is highly unlikely that an occupant of the ‘E’ corner will ever become truly rich.

It sounds a little scary at first, but this is actually good news for you. It’s good news because it means that, if you want to get rich, all you have to do is start thinking more like the people who live in the I, or investors, quadrant.

One of the best things you can invest in is real estate. That is what Kiyosaki’s rich dad did, and it made him…well, rich. In order to think like a real estate investor, simply tell your money that you are through working for it. It is time for your money to get to work for you.

Author: Alexandria P. Anderson specializes helping people to find and purchase Eden Prairie MN real estate, as well as homes in Eden Prairie for her realty clients.