Paying off a Mortgage - Yes or No

Paying off a Mortgage - Yes or No

For myself, having just purchased a home last year with a 30 year mortgage - paying it off sounds like a really long term goal.

But, for some - maybe it's not and there are some things that the"experts" recommend.

Hopefully your current mortgage rate is under 5% - if not, as a Realtor, I would highly recommend looking into refinancing that debt.  Most likely you could not only reduce your monthly payment, you could probably reduce your payment term.  All the experts seem to agree that making additional principal payments will pay down that debt quickly - so always keep that in mind.  With interest rates so low on mortgages, that is why you really need to look at all your debt and investments.

Some would say if you have a low interest mortgage - you might get richer by investing that extra money somewhere else.  Long term investors in stock owning mutual funds are currently hoping to earn far greater returns than what they are paying on their mortgage.  Then some will throw in the fact that the interest you pay on a mortgage is tax deductible - but that can be a whole other pro/con discussion we will not go into at this time.

If you have credit card debt - EVERYONE says you need to focus on paying that off first.  I GUARANTEE the interest rate you are paying on your cards is WAY higher than your mortgage.  And that interest is not tax deductible.

Financial advisers to those who have retirement on the horizon say to max out your retirement contributions before making extra payments toward your mortgage.  Preferably into an IRA or Roth IRA which have tax deductions and are tax-deferred.

Most also agree you should never pull money out of a retirement account to pay off a mortgage.  You will have to pay taxes on that money if it's a traditional account along with depleting your savings and possibly pushing you into a higher tax bracket.  Doing this without some serious consideration and/or counseling could leave you house rich but cash poor - and you will still have monthly bills!

Perhaps it is time to downsize.  As long as you are not in California - you might be able to pay cash for the smaller home or take out a significantly smaller loan.  If you do pay cash - you could potentially tap the home for an equity loan or reverse mortgage.  AGAIN - so not do either of these without professional financial counsel.

If you have paid off consumer debt and are funding your retirement - then it makes sense to focus on getting that mortgage paid down or off.  Remember the mortgage burning parties of old?  The most favorable argument for getting your mortgage paid off is peace of mind  - owning your home free and clear.

Best advice - have a professional financial adviser look at your overall picture and goals to determine the best path to follow.

Home Inspections - Be prepared

Home Inspections - Be Prepared

Home Inspections can be the bane of a Realtor's existence.  It can cause anguish to a home seller and anxiety for a buyer.  Here are some tips for all parties involved to help make this part of a transaction uneventful.

Sellers:  You might consider having a pre-listing inspection completed.  Surprises might be fun for your birthday or Christmas, but they are NOT fun when you are counting on a closing date and something in the buyers inspection throws a wrench in the whole deal.  Once you get the results - have your Realtor go over the report with you and note any items that a typical buyer would expect to be fixed.  Have the repairs completed by a reputable, licensed contractor and keep a copy of the invoice.  When you list the home, you can offer a copy of the inspection to any prospective buyer along with any invoices for completed repairs. This shows a lot of care of good faith to a buyer knowing you cared enough to be transparent about the condition of your home.  Who knows, they might even waive doing an inspection of their own.

Sellers:  You should pull out any permits or warranties you might have for improvements to your home. This is particularly important if you have recently replaced a roof, HVAC, major mechanical items, etc.  You will be disclosing any possible defects or past issues on your Indiana State disclosure - so if you have addressed any of these issues - be sure to have some sort of documentation.

Realtors and Sellers:  Once you list your home, have an accepted contract and a buyer has scheduled their own inspection there are some ways you can best present your home.  Have all pets out of the home. Make sure access to crawl spaces and attics are free and clear.  Be sure there aren't any burned out bulbs in attics, closets, etc.  Lastly - makes plans to be gone during the inspection.  Buyers typically will accompany their inspector and it is very uncomfortable to have you present during this time.  It can take 2-3+ hours depending on the size of the home.

Buyers:  Even though I recommended a pre-listing inspection be done by the seller, I am NOT recommending that you accept that report.  If I was representing you as a client, I would still recommend you complete your own inspection.  You know how they always recommend getting 2 estimates for any large item?  Well, you are about to make the largest investment of your lifetime - so a 2nd opinion is definitely warranted.  Once you get the results back, consult with your Realtor as to which items warrant asking for repairs.  Warranted items typically should fall into categories of "health, safety and habitability" issues. Cosmetic issues do not qualify as a warranted item.

It's all about communication - isn't that true about most of life?

Indiana is more than is seems

Indiana is more than it seems........

Created by the Indy Partnership and promoted by the Indiana Chamber of Commerce

Indianapolis Regional Economy - March 2014

Indianapolis Regional Economy - March 2014
Published by the Indianapolis Chamber of Commerce
This gives a nice overview of what is going on in the arena of employment in our area locally while comparing to the state and the nation.

You can get more business information and announcements at their website HERE

Indiana Fairs and Festivals, Now through April

Indiana Fairs and Festivals, Now through April

Shipshewana On The Road	3/29/14 3/30/14	2	Sat	Fort Wayne, IN
Peace Zone Arts & Crafts Show	3/29/14	1	Sat	Evansville, IN
Hello Spring Craft Show, O.c.c.	3/29/14	1	Sat	Elkhart, IN
Parkinson's Smoke Out	4/3/14 4/5/14	3	Thu	Evansville, IN
Woodside Children's Center Vendor Blender	4/4/14	1	Fri	Greenwood, IN
Garden Gate Festival	4/11/14 4/12/14	2	Fri	Huntingburg, IN
Blackhawk Manor Festival	4/12/14 4/13/14	2	Sat	French Lick, IN
Purdue Spring Fest	4/12/14 4/13/14	2	Sat	West Lafayette, IN
Highland Parks & Recreation Spring Craft Show & Vendor Fair	4/12/14	1	Sat	Highland, IN
Crafty Bear Fare	4/12/14	1	Sat	Mooresville, IN
Garden Gate Jazz, Art, Wine & Craft Beer Festival	4/12/14	1	Sat	Huntingburg, IN
Corpus Christi Crusaders Craft And Vendor Fair	4/13/14	1	Sun	Evansville, IN
The Fiber Event @ Greencastle	4/18/14 4/19/14	2	Fri	Greencastle, IN
Heartland Creative Arts & Craft Show	4/23/14 4/27/14	5	Wed	Merriville, IN
Wakarusa Maple Syrup Festival	4/25/14 4/26/14	2	Fri	Wakarusa, IN
Morel Festival	4/25/14 4/27/14	3	Fri	Morgantown, IN
Indiana Fiber & Music Festival	4/26/14 4/27/14	2	Sat	Charlestown, IN
Lake Central Band Boosters Spring Craft Fair	4/26/14	1	Sat	St John, IN
Lanthier Winery Spring Celebration Festival	4/26/14 4/27/14	2	Sat	Madison, IN
Earth Day Indiana Festival	4/26/14	1	Sat	Indianapolis, IN

Homeowner Associations (HOA's) - one size does not fit all

Homeowner Associations (HOA's) - one size does not fit all

HOA's can be self managed or enlist a management company.  The biggest issue is ALWAYS the enforcement of the covenants and bylaws.

Condos mostly deal with noise and parking.  Single family homes generally deal with additions, fences, landscaping and common areas.

The Board has a duty to reasonably enforce the covenants and rules and avoid risk liability.  At the same time, board members are residents - so it can lead to personal attacks and uncomfortable situations. 

Why the rules?  

Protecting values, required by governing documents, promoting harmony within a neighborhood and to avoid legal proceedings against the neighborhood.

Who typically breaks the rules?

Uniformed homeowners - be sure all property owners have a copy of the covenants and restrictions and are on some sort of distribution list for updates and meetings

Procrastinators - you know who you are!  Best to just follow procedure and be persistent.

Hardship - they are willing to remedy, but the pocketbook will not underwrite the expense.  May need some assistance to waive fines or arrange a payment plan

Defiance - just follow procedure to try to avoid escalation.  HOA's should have an attorney to consult in these cases.

There are usually architectural and behavior guidelines such as:  fences, mailboxes, pools, sheds, noise, parking, common areas, age, etc.

There should be regularly scheduled inspections of the neighborhood so that issues do not go undetected.  Working after the fact can make enforcement and compliance difficult.

An association's approach to enforcement is critical.  It should be timely, consistent and uniform.  Associations that allow deviations is putting itself and its future actions in jeopardy. 

HOA documents sometimes have a No Waiver Clause that means if they fail to enforce something in one case - it does NOT constitute a waiver of the right to later enforce that same rule or provision.

Avoiding violations is the most ideal situation and can be accomplished by:

  Education and communication

  New Member welcome package

  Email reminders

  Websites

  Mailed annual meeting notice

  Review of governing documents for outdated and conflicting provisions

Summary of Best Practices:

  Educate residents and send email reminders

  Conduct regular inspections

  Review the governing documents on a regular basis

  Maintain a book of resolutions and rules supported by meeting minutes

  Utilize management companies and attorneys experienced in HOA laws

  Adopt enforcement procedures via a resolution

  Make enforcement uniform, timely and consistent

  Maintain D & O (Directors and Officers) insurance

More details can be found  HERE

  

Tax Tips for transferees, homeowners and other movers and shakers

TAX TIPS FOR TRANSFEREES, HOMEOWNERS AND OTHER MOVERS AND SHAKERS

Whether you moved because you got a new job, were transferred by your employer, became a first time homeowner or perhaps up sized or down sized - there might be some deductions you overlooked!

We all know about deducting those interest payments every year - mainly because our mortgage companies send us statements - but look through this list of tips if you actually changed residences in 2013.

The best advice is always to consult a professional and get it right the first time, but go to this link below to get some reminders of things you might have overlooked and forgotten to tell even the professionals!

Click HERE to see ALL the details

How to Pack Odd-Shaped Items when you are moving

How to Pack Odd-Shaped Items when you are moving

                                                                                                     

David Shapiro from North American Van Lines provides another segment for our blog........

When it comes time to moving to a new home, one of the most time-consuming activities is packing up your belongings. It can become even more difficult when the items you’re packing are odd shaped or fragile. David offers some great tips for packing some of those odds balls such as:

Framed art

China and glass stemware

Sculptures

Stringed instruments

Mirrors

Lampshades

Go to this link HERE for all the details ..............and get packing!

Central Indiana Transit Bill Update

inShare

Central Indiana Transit Bill Update

This issue has been thoroughly debated for many years and after a summer study committee in 2013 proposed and passed transit legislation, SB 176 was amended and passed the Senate on February 4, 2014 by a vote of 28-20. The Speaker of the House indicated "it's going to need some work", however, progress is being made. This bill is subject to change throughout the legislative process.

Also known as Senate Bill 176 - it provides for the establisment or expansion of public tranportation services in elegible counties through public questions placed on the ballot under ordinances adopted by the fiscal body of the eligible county.

See the complete article HERE

Get more details, proposed routes at the consumer webiste HERE

February and March Happenings in Indiana

February and March Happenings in Indiana

Follow the links below for more information - still plenty to get out and do, despite the weather!

Name	Date	Days	Start Day	City
Heartland Creative Arts & Craft Show	2/13/14  2/16/14	4	Thu	Merrilville, IN
Indiana Art Fair	2/14/14  2/15/14	2	Fri	Indianapolis, IN
Shipshewana On The Road	2/15/14  2/16/14	2	Sat	South Bend, IN
Parke County Maple Syrup Fair	2/22/14  3/2/14	9	Sat	Rockville, IN
23rd Annual Maple Syrup Festival 2014	2/22/14  2/23/14	2	Sat	Salem, IN
Women's Club Of Newburgh Arts & Crafts Show	2/22/14	1	Sat	Newburgh, IN
Spring Fling Craft Show	3/1/14	1	Sat	Elkhart, IN
Spring Fling Vendor & Craft Show	3/2/14	1	Sun	Schererville, IN
Indiana Heritage Quilt Show	3/6/14  3/8/14	3	Thu	Bloomington, IN
Fiber Fest & Spin-in	3/7/14  3/8/14	2	Fri	Portland, IN
Shipshewana On The Road	3/8/14  3/9/14	2	Sat	Kokomo, IN
Dugger Gun And Knife Show	3/8/14  3/9/14	2	Sat	Dugger, IN
Spring Jam Craft & Vendor Fundraiser	3/8/14	1	Sat	Hobart, IN
Springtime In Indiana Art, Craft & Gift Showcase	3/15/14  3/16/14	2	Sat	Noblesville, IN
Shipshewana On The Road	3/15/14  3/16/14	2	Sat	Valparaiso, IN
Spring Jam Lafayette Craft & Vendor Fundraiser	3/22/14	1	Sat	Lafayette, IN
Shipshewana On The Road	3/29/14  3/30/14	2	Sat	Fort Wayne, IN
Peace Zone Arts & Crafts Show	3/29/14	1	Sat	Evansville, IN
Hello Spring Craft Show, O.c.c.	3/29/14	1	Sat	Elkhart, IN

Announcing Your Move To Your Family

Announcing Your Move to Your Family

a guest blog by David Shapiro with North American Van Lines

Making the decision to move is often difficult for many of us. Whether it’s for a new job, to be closer to (or farther from) the in-laws, or just an adventure, it’s a lot of work to pack up your home, find a new school, get adjusted to a new city, etc., and the change that comes with moving can also be intimidating. Add to that the prospect of telling your family and friends you’re moving away and you may feel loaded down with stress before packing even one box.

Get the complete list of tips HERE 

Tips on :  How to break the news, feelings, questions, plans and more

  

Change is often scary, but it’s exciting too. You can help ease your friends and family members’ feelings toward this change when you approach it with honesty, forthrightness, and a good attitude.

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David Shapiro is a marketing relocation specialist for moving companies like North American Van Lines. During his free time, he enjoys hiking, biking, swimming, and rock climbing.

The Annual Indianapolis Home Show

There is snow on the ground and frigid temps - must be time for The Annual Indianapolis Home Show!!!

From January 24th through February 2nd - get out of the cold and get inspired by the Fischer Homes centerpiece Home and all the vendors selling their wares to make your life and home what you'd always dreamed.

For more details click HERE
Discounts, celebrity sightings, vendors, etc

Be sure to visit us at our Prudential Indiana Realty booth right by the entrance to the centerpiece home. Enter the drawing for a $250.00 gift card!

Just for fun - here is a time lapse video of the construction process for the Centerpiece home. Quite the feat!

http://vimeo.com/82982101