Did you know? Between 2010 and 2017, homeowner equity in the United States increased from $6.16 trillion to roughly #14.44 trillion, according to a report from Statista. In 2018, according to a report from CoreLogic and CNBC, homeowners saw their equity increase 12 percent – that translates to an average of $15,000 per homeowner, and a total gain of more than $900 billion.
In short? Homeownership can really pay – if you’re willing to invest time, research, and care at the start of the process.
Buying a home is one of the biggest and most significant financial decisions that most of us will ever make. And it’s important to realize that buying a home (emphasis there because, well, it deserves it) is about more than just making a down payment and securing a mortgage.
It’s about much, much more than that.
Buying a home is about making an investment in your future. It’s choosing the place where you and your family will grow together and make memories. It’s choosing what schools your family may attend. It’s choosing your neighbors, and your neighborhood – your local pizza place, your go-to sushi spot, a favorite park, whether you’re going to be a Jewel household or a Mariano’s household.
In other words? When you purchase a home, in many ways, you’re also purchasing a future – and it’s important to take all the steps that you can to set up and safeguard that future, at every step of the way.
Beyond building equity, homeownership comes with many different long-term personal and financial considerations, including:
One of the biggest transitions that many people face when they move from buying to renting is getting a handle on the taxes. Property taxes are a fact of life – but there are steps you can take to make them more manageable, in the short term and the long. There are also all sorts of tax benefits that homeowners can make use of, including mortgage interest deductions and property tax deductions. Similarly, when you sell a home, there are ways to limit what you pay in capital gains taxes. Bottom line? There are many tax considerations that come along with homeownership, for better and for worse – are you prepared to address them all?
Access to Cash/Liquid Assets
Markets rise and fall over the years. Are you going to be in a position to keep up? For instance, in Illinois, homeowners can register a property as a Homestead to put it off limits to creditors, in order to protect themselves during economic downtimes. There are restrictions and limits involved, and it’s important to get a handle on them all. Similarly, are you setting up your real estate transaction and your mortgage for your lifestyle? Are you looking to move again soon, or settle in for the long haul? How easy do you want it to be to access cash and other assets down the line?
What will happen to your home when you or your loved one passes on? While it’s not always the easiest conversation to have, it’s an important one. As you purchase your “Forever Home,” it’s important to think about your long-term future. What steps are you going to take to ensure that your most precious assets stay in the family? How are you going to, provide for your dependents and other loved ones financially in a trying time? There are many ways to consider estate planning and transitions – before, during, and after you purchase a home.
For all of these considerations and more – including lease and rental agreement laws, security deposit laws, and commercial development laws – it’s important to have a smart, experienced, local real estate attorney on your side.
Whether you’re buying, selling, or developing, a real estate attorney can help you in countless ways. In many cases, attorneys are an invaluable resource, when it comes to the big picture, and all the little details. Ultimately, the way that your paperwork is put together can significantly affect your personal and financial goals long-term.
Looking for help? The Gunderson Law Firm is here and ready to step in.
We’re your Chicagoland real estate law experts. We know what makes the neighborhoods of this city tick, and we offer an extensive background in real estate legal services, including:
- Residential Real Estate
- Commercial Real Estate
- Purchases and Sales
- Tax-Free Exchanges
- Mortgage Conveyancing & Advice
- Real Estate Litigation
- Title Insurance
- Title Examinations & Disputes
- Asset Protection / Trusts
- Estate Planning / Wills
- Reverse Mortgages
- Property Development
- Condominium Law
The Gunderson Law Firm possesses unmatched expertise and insight, reinforced by years of experience and long-term connections throughout Chicago’s real estate, finance, and insurance industries. Whatever your goals, out attorneys and staff can assist you in moving forward, confident that you’re getting the right papers in the right places, addressed by the right people at the right time. We can help you get all the i’s dotted and t’s crossed correctly, and as smoothly as humanly possible.
Want to keep the conversation going? Ready to look ahead to the future with more confidence? Drop us a line today to keep the conversation going.