The “Not-So-Obvious” Benefits of Buying New

Article courtesy of the National Association of Home Builders

Prospective home buyers have the choice of two types of houses on the market: resale or new.

Home buyers planning to buy a brand-new house or condominium often cite energy-efficiency, open layout, a warranty, and being able to select appliances, flooring, paint colors and other design elements as factors driving their choice.

But builders say that buyers can be drawn to a new house for reasons that aren’t so obvious. Below are a few more benefits of a brand-new home that you may not see in the sales brochure.

Building a Community Together

A brand-new community is one of the built-in benefits of many new homes. When families move in to a subdivision at the same time, often lasting bonds of friendship and neighborliness are formed right away. Nobody is the “new kid on the block,” and many home builders host community block parties in new developments to help owners meet and connect. Popular amenities like pools, walking trails and courts for tennis and basketball offer additional opportunities for interaction among neighbors of all ages. Often new communities are comprised of home owners in the same stage of life, such as young families or active retirees, so neighbors can get to know each other through carpools, PTA meetings, tennis matches or golf games.

Entertaining

Throwing a party in an older home can be a challenge because smaller, distinct rooms make it difficult to entertain guests in one large space. Builders are responding to today’s home buyer preferences with layouts featuring more open spaces and rooms that flow into each other more easily, like the popular great room. While you are in the kitchen preparing dinner, you can still interact with guests enjoying conversation in the family room without feeling closed off. The feeling of spaciousness in today’s new-home layouts often is enhanced the higher ceilings and additional windows that bringing in more light than you would find in an older home.

A Clean Slate

For some buyers, parking the car in a sparkling-clean garage or being the first to cook a dinner in a brand-new kitchen is part of the appeal of new construction. In addition, you won’t have to spend time stripping dated wallpaper or repainting to suit your own sense of style. You can create your own home décor from the get-go!

The advantages of being the first owner of a home extend to the outdoors. Instead of inheriting inconveniently or precariously placed trees, or having to tear up overgrown shrubs, you can design and plant the lawn and garden you want.

Outlets, Outlets Everywhere!

Homes built in the 1960’s and earlier were wired much differently than houses today. Builders had no way of anticipating the invention of high-definition televisions, DVRs and computers that we enjoy today—and the very different electrical requirements they would introduce. New homes can accommodate advanced technologies like structured wiring, security systems and sophisticated lighting plans, and can be tailored to meet the individual home owner’s needs.

Anyone who has ever lived in an older home can also attest to the fact that there are never enough outlets, inside or out! New-home builders plan for the increased number and type of electronics and appliances used by today’s families, so you can safely operate a wine cooler, Christmas lights or your computer.

For more information on the benefits of a new home, contact one of Hartland Homes’ new home specialists at 402-477-6668 or visit the National Association of Home Builders online at www.nahb.org/forconsumers.

The Tax Advantages of Homeownership

Article courtesy of National Association of Home Builders (NAHB)

Owning your own home can be a very rewarding experience — especially when tax time rolls around. Three tax items in particular — the mortgage interest deduction, the property tax deduction and the capital gains exclusion — can provide significant financial benefits to home owners when the time comes to settle up with Uncle Sam.

Mortgage Interest Deduction

The interest you pay as part of your mortgage payment is deductible on your federal tax return and may also be on your state income tax return depending on where you live.

This deduction applies to first and second mortgages, up $1 million of mortgage debt. Your lender should provide you with one or more IRS Form 1098s, which will provide the amount you may claim on your tax return. To benefit from this deduction you must itemize your deductions using a Schedule A Form.

You may also deduct the interest on money you borrow against your home to finance housing or non housing-related expenses. An example is a home equity loan, which many home owners use to remodel their home, pay off credit card bills, buy a car, finance a vacation or pay for educational expenses.

Property Tax Deduction

State and local taxes paid on the assessed value of the home are also deductible on your federal return. Like the mortgage interest deduction, itemizing is necessary if you wish to deduct property tax payments.

Notably, for many home owners the combined deductions for mortgage interest and property taxes exceed the standard deduction — currently between $5,700 and $11,400, depending on filing status. When this is the case, home owners are able to deduct or “write-off” many other items including charitable contributions, state income or sales taxes, medical and dental expenses, tax preparation fees and other miscellaneous allowable deductions, which collectively can reduce your federal and state income tax liabilities dramatically. Research by economists at the National Association of Home Builders indicates that for the typical home owner, these savings can exceed $5,000 in the first year of homeownership.

Capital Gains Exclusion

Perhaps the biggest advantage to owning a home is the ability to avoid paying capital gains when it is sold. Under current law, married home owners filing jointly may exclude up to $500,000 of capital gains and single tax filers may exclude $250,000 from taxation. This exclusion applies only if you have lived in your primary residence for two years or more. But the exemption may be used repeatedly as long as the residency rules are met.

The tax benefits conferred on home owners by the federal government are substantial. Annual benefits, such as the mortgage interest deduction and the property tax deduction, along with the less frequently used benefit of the capital gains exclusion, make homeownership more tax advantageous than almost any other investment. Take advantage of it!

Be sure to consult your tax advisor about the deductions you may be eligible to claim.

To see the many more reasons homeownership benefits you, visit www.nahb.org/forconsumers.

Positive Reasons to Buy a Home NOW

The economic recession has helped to create the best buyer’s market we have seen ever!  There are many factors that are contributing to make this not only a great time to buy, but one of the best in history.

 

1)  LOW interest rates.  The last recession was in the 80’s but the interest rates were between 14% and 21%!!!!  Can you imagine?  Today the rates are fluctuating between 4.5% and 6%.    This makes owning a home incredibly affordable.

Example:

$150,000 home, 3.5% down payment

Principal and Interest at 14% $1745.  Income to qualify for this loan would be approximately $81,000.

Principal and interest at 5.5%  $836.   Income to qualify for this loan would be approximately $46,000.

That is a difference of over $900 in monthly payment and $35,000 in annual income for the same price home!! 

All indications are that these LOW interest rates can not last.  You may never be able to purchase a home so cheaply in your lifetime.

2)  Do you really need more reasons??  If so, this one will soon be gone so act fast.  $8,000 new homebuyer tax credit or the $6,500 repeat buyer tax credit.  You must enter into a contract to purchase this home by April 30th, 2010 and close by June 30th, 2010.  (If you want to build, you must purchase your home  from Hartland Homes by March 15th!  Other builders are not able to build and close by June 30th!  )

All sources indicate this will NOT be extended. 

3)  The last few years the housing market has been going through a market correction.  What this means to you is that home prices are the lowest they have been in years.  Once demand picks up, these prices will rise quickly.  Once again, you may never be able to purchase a home at these prices in your lifetime.

Lincoln Ne has 2nd lowest unemployment rate!

Recession sometimes takes uneven toll - USATODAY.com

Is NOW Really the Best Time to Buy a Home?

There are many positive reasons (low interest rates and prices) to buy a home right now and one huge one ($8,000 tax credit) that will go away soon!  However, as with any purchase, these positive factors and incentives only matter if it is the right time for you to buy.  So let’s take a look at what makes it the right time for you. 

First, I’d like to point out that  marital status and gender are NOT indicators of the right time to buy a home.  Did you know that the largest growing demographic for home ownership is single women?  A home is a sound investment whether you are single, married, female, male, childless or have a big family!  The question of homeownership being right for you should instead be based on the following:  financial ability, staying in town, and  improvement of your life.

Probably the biggest indicator for home ownership is financial ability.  Financial ability actually encompasses many different subjects.

1)  Job.  Do you have a stable job?  Is it full time?  Have you been in the field for 2 years or did you go to school to learn the trade? 

2)  Credit.  Do you have good credit?  Have you paid all your bills on time?  Do you have any collections or judgments?  Do you have a bankruptcy, foreclosure or repossession?  Do you have any credit at all? 

3)  Savings.  Banks like to see that you have some “reserves”.   Savings accounts, 401Ks, mutual funds, retirement funds all count towards savings.  Savings provides you with a source of down payment and a “back up” for when times are tough. 

      What if I don’t have any savings? Fear not, there may still be a way.  If you have good credit and job stability, the bank will overlook savings.  NIFA has a program where y0u can borrow against your future $8,000 tax credit. All you need is $1000.00 of your own money!  Also, Hartland Homes pays your points and closing costs saving you approximately $2,400!!

Do you plan on moving in the next 2 years?  If you do, home ownership may not be right for you.  To take full advantage of home ownership, you really need to live in your home at least 3 years.  This allows for appreciation (prices in the market increase, thereby increasing what your home is worth).  When you sell your home, you can take that extra equity to move up or cash out!  If you move within a couple of years of purchasing, the home may not have appreciated enough to pay a real estate agent to sell your home and the other closing fees associated with selling your home.

Are you ready to improve your life?  Homeownership can improve your life in so many ways.  Here are just a few:

1)  Owning a home is a great investment.  It is a great way to improve your wealth and save money using the concept of leverage.  For example:  If you put $5,000 in any kind of savings, mutual fund or bond the $5,000 grows at x%.  When you invest $5,000 into a $120,000 home, it appreciates at x% based on the $120,000, so your money grows quicker!

2)  Freedom to live how you want!  You can have a backyard, a garage and a basement, decorate and hang pictures,  plant a garden, have a pet, install a play set…. whatever your heart desires. 

3) Lower Utility Bills!  Hartland Homes are built so energy efficient that they meet the Energy Star guidelines.  What that means to you is savings every month on your utility bills.

 

4)  Tax Break.  No one likes to pay Uncle Sam their hard earned money.  When you own a home you can deduct the interest paid on your mortgage and the property taxes paid, lowering the amount you owe the IRS!  Check with an accountant to see just how much you would save! 

For those of you who think that if you rent you don’t pay property taxes… think again.  When you pay rent you are paying the mortgage payment and taxes for the landlord.  Wouldn’t it be nice to get that deduction for yourself?

5)  Your wants, needs, dreams can come true!  Everybody needs something different:  more bedrooms, larger living space, a garage, a basement, an office, a play room, better schools, better neighborhood, closer to work….. I could go on forever, but you get the idea.  In the end, this is really why you buy a home.  Envision how your life would improve!  When you build a new home, you can select those items which you need or desire the most instead of settling for what is available!

 

If you think it may be the right time to own a home, give Hartland Homes a call.  Our new home specialists can walk you through every step of the process.  Not sure if your credit is good enough?  No problem, our specialists can help you with that too!

Want to know more about the positive reasons to buy a home now?  I will be posting another story on it soon.  Or just ask our new home specialists. 402-477-6668

Need a Down Payment? Eligible for the $8,000 Tax Credit?

Nebraska Investment Finance Authority (NIFA) has a program for you! 

The Advance Buyer Credit 2 (ABC-2) Loan program through NIFA allows a first time home buyer to harness their tax credit for down payment BEFORE they actually receive the  money.  Here are the nuts and bolts of the program:

1)  Must be a first time home buyer and qualify for the $8,000 tax credit and must meet NIFA’s income and purchase price guidelines.

2)  Must invest $1000 of your own money.

3)  May borrow up to $6,800 for down payment.

4)  The amount you borrow is a 2nd loan that will be paid off in 10 years.  You may pay off the 2nd loan at any time.  However, if you pay it off within 180 days after the loan closing then you will receive a $500 incentive check from NIFA .

5)  NIFA rate for the 1st loan is 5.30%, 2nd loan is 7.30%.  Remember, if you use your tax credit money and pay off the loan right away, you will pay only pennies to “borrow” it for less than 6 months. 

For more information, call a Hartland Homes agent today:  477-6668 or visit the NIFA website.

Snow and Winter Maintenance Tips

As Nebraska welcomes back the days of old with numerous inches of snow and wind, here are some maintenance tips:

Snow blowing in the roof vents.

Snow blowing in through the roof vents can happen anytime there is snow and wind.  Snow can sift in through your roof vents and then it is in your attic.  As the temperatures warm up and the snow starts to melt, the water will condense and drip through the drywall.

Snow blowing through back vents and plumbing stacks.

Keep in mind that whenever something is vented to the outside,   air and snow can get to the inside of your home.  This happens in the same manner as the roof vent situation.

High efficiency furnace vents.

The vent to your high efficiency furnace must be kept open and clear of snow so that your furnace can breathe and operate smoothly.  If snow covers this, your furnace can stop working.  If this happens, remove the snow or obstacle from in front of the vent.   (This can also happen with the dryer vent as well.)  Also, please remember to continue to change your filter every month.

Snow Pile or drifts around windows and doors.

You should clear snow from windows and doors because when the snow melts it can leak into areas around these openings.

Ice Dams on Eves and Gutters

Snow and Ice should be removed from roof edges and gutters.  If this is not done ice dams can occur. Ice dams can cause leaks not only into soffit areas but also into the roof .  It is not recommended that you get on the roof to remove snow and ice.  Instead remove snow and ice while standing on the ground or safely from a ladder using a snow rake.  See picture below for further explanation of ice dams.

      

-Mark Reinke                                                                                                 Warranty Manager

If you have any topics you would like to see covered, please let us know!  Email us.

Hartland Homes’ 10th Annual Chili Feed

I just posted pictures from our Chili Feed.  We fed over 130 subs, suppliers and business partners!  This is an awesome Christmastime tradition.  To see the pictures click on the link!

Hartland Homes' Chili Feed

Don't wait until after the holidays....

 

There has never been a better time to buy a home!  I know it sounds cliché, but it is so true.  Allow me to explain...

1)  Prices will be going up! For the past couple of years demand has been pent up due to the negative media and concerns about the economy.  Because of this, prices have stayed low!  However, home sales have been increasing steadily and the prime home buying season is after January 1. The law of supply and demand tells us that as demand goes up, prices will too!  As the prime home buying season starts, demand increases, supply decreases and prices will go up!   Buying now ensures lowest price.

2)  Interest rates are at an all time low!  (NOW)  Rates change daily and they really only have one way to go - UP!  Did you know you can get a rate of 3.50% that is fixed for 5 years??? (APR 3.025%)  That is incredible!

3)  $8,000 or $6,500 tax credit. They won't be extending this. This is a once in a lifetime offer of FREE money!  If you can buy now, you should take advantage of this tax credit.  For more information on this see the link above on the Homebuyer Tax Credit.

4) Through December, Hartland Homes is offering $2,500 off of options and upgrades. This will end December 31, 2009.

5)  Do you really need another reason? Give us a call and we will help guide you through the home buying process.  Can you buy now?  How much home can you afford?  What are your options?  Hartland Homes can help make your home buying dreams come true!

25 Years Ago

A 25th Anniversary Memory

Here are some fun facts about 1984:

• Michael Jackson was at the top with his album “Thriller”
• Popular movies:  Terms of Endearment and Ghostbusters
• Popular TV shows:  Dynasty and Magnum PI
• Vanessa Williams wins then looses the title of Miss America
• Apple introduced the Macintosh
• The Soviets boycotted the Los Angeles Olympics
• The Space Shuttle Discovery had its maiden voyage
• $.20 was the price of a first class stamp

Our Beginning:  In 1984, Duane Hartman started Hartland Homes with just 3 employees, including himself.  Duane was the salesperson, Jim Kuper was in charge of construction and the 3rd employee was an administrative person. 

Our Employees:  Our construction and office staff have a combined 166 years working at Hartland Homes.  That is an average of 15 years per employee!   The experience and loyalty of our employees has made Hartland Homes successful.  Thank you employees!

Our Locations: The office for the company was in the model home on Briar Rosa Drive.  Eventually, Hartland Homes moved out of the model home and into an office.  This office was located at 10th and Van Dorn right next to Oak Creek flowers.  Both have been torn down and now that area is slated for commercial development.  Hartland Homes moved to its current location in May 1992.

Our improvements: 

• Central  Air, dishwashers and space saver microwaves weren’t always standard
• We switched to cement board siding around 1997 because of all the class action suits on the old siding.  We love the cement board siding.
• Started out with one framing crew and at our peak we had 9 framing crews!
• upgraded to 92% efficient furnaces  (from 80%) , saving our buyers money on utility bills! 
• Added the 20 year dry basement guarantee in the last 2 years.  This system works!! 
• Computerized
  • - blue prints  (we used to draw them ….it took a long time to make changes!
  • Sales contracts (used to write these by hand and some people’s handwriting made it difficult to interpret what the customer wanted!)
  • Scheduling and Warranty (our Builder Trend program makes it easy for customers to see what phase their home is scheduled for next, see current pictures of the home and also. after closing, allows the customer to input warranty requests and let us know when the work is done and if the work is satisfactory.
  • 15 years ago we started using oak woodwork standard in all our homes.  Prior to that we used a softer wood like pine and poplar.  The oak is beautiful and it holds up much better to kids, pets and other abuses.
  • We have updated all our fronts… the homes used to have vertical siding and trim boards.  See picture:

Here is the updated look:  Notice this one has lap siding and no trim boards giving it a cleaner more modern look.

Every year we add new designs and improve our homes, above is just a few of those ways.   We are constantly striving to improve our homes either by updating the plans, inventing new plans or upgrading  products that don’t meet our standards.  This is one of the many reasons we are Lincoln’s Largest Home Builder and plan to be around for another 25 years serving the Lincoln community.