Should you invest in Real Estate?

The “20% rule” states that an investor should have a minimum of 20% of their portfolio invested in alternatives like commercial real estate. This rule was made famous by the Yale endowment, which has outperformed traditional endowments made up of only stocks and bonds for the last 25+ years. In fact, an investor who invested using the 20% rule in 1995 would have earned about twice as much as an investor who used a more traditional allocation

Mortgage Rate update:

Mortgage rates dropped below 4% for the first time since November, as the crucial spring selling season gets under way.

The average rate on a 30-year fixed-rate mortgage dropped to 3.97% for the week ended April 20, from 4.08% a week earlier and 4.3% in mid-March.

One reason to own a home is the tax benefits. Here are some highlights:

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible.

If Your Adjusted Gross Income (AGI) does not exceed $109,000. ... Borrowers with an AGI less than $100,000 can deduct 100% of their PMI premiums. The PMI tax deductions are effective for both home purchase and refinancing transactions. Depending on household income, both FHA MIP and USDA can be deductible as well.

Using a $12,000 mortgage interest example, a married couple in the 35% tax bracket would get an $11,600 standard deduction, which is worth $4,060 in reduced tax payments. If the couple itemized their deductions on Schedule A, the mortgage deduction would come to $4,200

February home sales have slowed.... due to lack of inventory...

Check out these stats of how home prices have went up and sales down.

Central Ohio home sales cooled in February as the number of listings plunged from a year ago, according to a report from the Columbus Realtors trade group.

There were 1,678 homes and condos sold during the month, a 0.5 percent uptick from February 2016, a significant slowing from last year’s 6.8 percent growth rate.

Click Here to read the full article

What do you know about home owners insurance?

Most Consumers Are Wrong About Home Insurance

Fifty-six percent of consumers recently surveyed believe that a standard homeowner’s policy covers flood damage. But they’re mistaken, and their assumption could be a costly mistake.

Educate Yourself
Would you be able to explain the nuances of insurance to your clients? If not, you may want to make sure you study up on the topic of flood insurance at nar.realtor.
The survey by insuranceQuotes of about 1,000 consumers shows a lot of misunderstandings when it comes to home insurance and what’s covered and what’s not.

“Being misinformed about your home policy can be an extremely expensive mistake—especially when a few inches of water in a 1,000 square-foot home can easily cost over $10,000 in repairs,” says Laura Adams, senior insurance analyst at insuranceQuotes. “There are a number of widespread myths ranging from coverage for dog bites to items stolen from your car that frequently trip up policyholders.”

Consumers tend to overestimate the amount of coverage they have when it comes to flooding protection, according to the study. Further, 81 percent of survey respondents knew that valuables stolen from their home were covered under most standard homeowner’s policies, yet only 28 percent knew that renter’s insurance would cover valuables stolen from their cars.

“It’s critical for consumers to thoroughly explore their options and really understand the protections that are included or excluded with a standard renter’s or home insurance policy,” says Adams. “Don’t wait until right before a big storm is headed your way to get coverage because there may be a waiting period.”

Flood insurance is particularly a hot topic to address with clients lately. The National Association of REALTORS® has been warning its members about the threats to homeowners and property sales when the National Flood Insurance Program expires on Sept. 30. Policymakers in more than 22,000 communities nationwide rely on NFIP to protect them from flood risks, like torrential rain, swollen rivers and lakes, snow melt, failing infrastructure, and storm surges and hurricanes.

“When the NFIP expired in 2010, over 1,300 home sales were disrupted every day as a result,” NAR President William E. Brown recently said in a statement. “That’s over 40,000 every month. Flood insurance is required for a mortgage in the 100-year floodplain, but without access to the NFIP, buyers simply couldn’t get a mortgage or vital protection from the number one cause of loss of property and life, flooding.”

DAILY REAL ESTATE NEWS | FRIDAY, APRIL 07, 2017

Due to the lowest inventory of existing homes in decades, new builds have also become a hot commodity! I just wanted to highlight this one great community in Hilliard if you are thinking of building I would love to show you around here or any other area!

https://www.fischerhomes.com/find-new-homes/communities/231/heritage-preserve/overview

Open House today! 2-4 PM in Clintonville!

352 W Henderson Rd, Columbus OH 43214

AMAZING Clintonville entire home renovation! You're going to love the GRANITE counter tops, new cabinets and S/S appliances. The beautifully refinished original HARDWOOD floors are found throughout this 3 bedroom, 2 full bath home. MASTER SUITE has ample closet space with walk-in shower! You'll enjoy your newly built TWO car garage PLUS extra parking in the back.Less than 10min drive to OSU! Just steps from your door you'll enjoy the park like setting of the Olentangy River and Park of Roses! This HOME is move in ready!