Jay Allen's Blog
7 Colonial Drive, Framingham, MA 01701
$479,900 Price $479,900 Sale Price
Your 401K is a great resource of investing for retirement. Many people use their 401k’s as a part of their overall investment strategies, pulling money out of it when it’s needed. When you’re ready to buy a house, you may think that pulling money out of your 401k for a down payment is a good idea. But think again.
Although you should always speak with a financial professional about your money matters, the bottom line is it is probably not the best idea to use your 401k to supply money for a downpayment on a home.
First, your 401k funds are pre-tax dollars. That means that you haven’t paid any taxes on these funds. Your employer will often match the amount of money that you put into your 401k as an incentive to help you save money for your future. You need to keep your 401k for a certain amount of time before any funds in the 401k become available to you without having to pay any kind of penalty. If you decide to absorb the penalty, you can often face a cut to your employer’s match programs as well. This is why you must consider this decision carefully.
Anyone under the age of 59.5 pays a penalty of 10 percent to take the money out of the fund. In addition, you’ll now need to pay taxes on this money, because it becomes a part of your adjusted gross income.
Keep It Separate
If you’re younger (say in your 30’s or 40’s) your best option is to have a completely separate account that is used to save for a downpayment and other expenses that you’ll incur when you buy a home. In this sense you aren’t spreading yourself too thin as far as investments go. You should compartmentalize your money. Buying a home is a large investment in itself. Home equity can also be a good source of a nest egg in later years when you need it. However, even if a property will be an income property, it’s never smart to take from one investment account to provide for another unless you’re shifting your focus. You don’t want to reach retirement, only to see that your funds have been depleted and you can’t retire as expected.
If you don't possess the hard funds required to move forward with a home purchase, a friend or family member may "gift" funds to help you with your downpayment. Lenders typically require some documentation from this friend or family member to verify the money isn't a loan (which would be viewed as new debt).
A friend or family member may also be named "part owner" of a property in exchange for their financial contribution...but remember, when the property is re-sold in the future, that part owner is entitled to receive their percentage of ownership out of the proceeds of the sale.
25 Riverview Road, Framingham, MA 01701
For more info, visit www.25Riverview.com!
When building a new house, you will face a lot of decisions to make. The initial price of your home entails the cost of all the standard finishes and the cost of construction. If you are planning to customize your home, you should always consider the cost of an upgrade. Otherwise, it's challenging to manage your budget when faced with numerous options. The best way to surmount this difficulty is to prioritize correctly and only spend money on things that add value to your construction.
When considering the type of upgrade to invest in, think in terms of overall value which is functionality as well as return on investment. Here are the five best updates that add value to your home:
Your kitchen is one of the essential points in a home. It is one of the rooms you visit every day, and you spend quality time. Also, when you decide to sell your house, the kitchen is one of those places a potential buyer will inspect to determine the quality of the house. You don't have to upgrade every single aspect of your kitchen at once. For a start, consider upgrading the Kitchen Island, taller cabinets, and LED strip cabinet lighting.
Upgrading your basement is a substantial investment if it is unfinished. An additional foot to the height of your basement can also make a remarkable difference.
When you plan on upgrading your lighting system, you are probably looking for ways to brighten up the house especially if it is builder grade construction. To make your money count, focus more on rooms where illumination is essential. Proper lighting can boost the quality of the house for potential buyers if a future need arises to sell.
A garage can be expanded in length and width to give room for more vehicles. It also can be upgraded depth-wise to accommodate things like gardening supplies, bikes, and more.
There is an added benefit to energy-saving upgrades. If you are considering investing in energy savers, consider getting things like energy efficient appliances, energy efficient windows, cooling and space heating devices, etc. An energy-efficient home will save with lots of money on your utility bills. Your home will perform efficiently for you while staying warm in the winter and cool in the summer.
If you intend to sell your home in the near future, you may want to spend some time sprucing up your residence's interior. In fact, there are many reasons to improve your home's interior before you list your house. Here are some considerations:
1. You can differentiate your residence from the competition.
A good exercise to consider as you prepare to put your home on the market is to carve out a Sunday to tour open houses in your area. Very quickly, you will be able to see the difference between the sellers who put effort into preparing their home for sale, and the ones who perhaps could have used more time to get their home "showing-ready." Which home will you be when you have your first open house?
2. You can boost the likelihood of a profitable home sale.
When it comes to selling your home, your ultimate goal likely is to earn as much as you can from your house sale. Thanks to a stunning home interior, you can increase your chances of enjoying a profitable house selling experience.
Remember, a dazzling home interior may make it simple for buyers to fall in love with your residence as soon as they walk through the front door. If multiple buyers compete to acquire your home, you may receive several offers to purchase at or above your residence's initial asking price.
3. You can speed up the home selling process.
There is no telling how long it will take you to sell your house. But if you improve your residence's interior, you could make your home an attractive option to dozens of buyers. And as a result, you could reap the benefits of a fast home sale. A consultation with a qualified home staging service can be a valuable investment to achieve this. And if you follow your stager's recommendations you may be better equipped than ever before to enjoy a successful house selling experience.