What You Need To Budget For When Buying A Home

What You Need To Budget for When Buying a Home

When it comes to buying a home, it can feel a bit intimidating to know how much you need to save and where to find that information. But you should know, you’re not expected to have all the answers yourself. There are many trusted professionals who can help you understand your finances and what you’ll need to budget for throughout the process.

To get you started, here are a few things experts say you should plan for along the way.

1. Down Payment

As you set your savings goal for your purchase, your down payment is likely already top of mind. And, like many other people, you may believe you need to set aside 20% of the home’s purchase price for that down payment – but that’s not always the case. The National Association of Realtors (NAR) says:

“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership. Having this knowledge is critical to know what to save . . .”

The good news is, you may be able to put as little as 3.5% (or even 0%) down in some situations. To understand your options, partner with a trusted professional who can go over the various loan types, down payment assistance programs, and what each one requires.

2. Earnest Money Deposit

Another item you may want to plan for is an earnest money deposit. While it isn’t required, it’s common in today’s highly competitive market because it can help your offer stand out in a bidding war.

So, what is it? It’s money you pay as a show of good faith when you make an offer on a house. This deposit works like a credit. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house. It’s not an added expense, it’s just paying some of that up front. First American explains what it is and how it works:

“The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party and is intended to show the seller you are serious about purchasing their home. Upon closing the money will generally be applied to your down payment or closing costs.”

In other words, an earnest money deposit could be the very first check you’ll write toward your purchase. The amount varies by state and situation. Realtor.com elaborates:

“The amount you’ll deposit as earnest money will depend on factors such as policies and limitations in your state, the current market, what your real estate agent recommends, and what the seller requires. On average, however, you can expect to hand over 1% to 2% of the total home purchase price.”

Work with a real estate advisor to understand any requirements in your local area and what they’ve recommended for other buyers in your market. They’ll help you determine if it’s something that could be a useful option for you.

3. Closing Costs

The next thing to plan for is your closing costs. The Federal Trade Commission (FTC) defines closing costs as:

“The upfront fees charged in connection with a mortgage loan transaction. …generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance.”

Basically, your closing costs cover the fees for various people and services involved in your transaction. NAR has this to say about how much to budget for:

“A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense…Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.”

The key takeaway is savvy buyers plan ahead for these expenses so they can come into the process prepared. Freddie Mac sums it up like this:

“If you’re in the market to buy a home, your down payment is probably top of mind. And rightly so – it’s likely the biggest cost of homebuying. However, it is not the only cost and it’s critical you understand all your expenses before diving in. The more prepared you are for your down payment, closing and other costs, the smoother your homebuying journey will be.”

4. Upfront Out of Pocket Cash for your professional inspection and appraisal fee.

home Bottom Line

Knowing what to budget for in the homebuying process is essential. To make sure you understand these and any other expenses that may come up, let’s connect so you have reliable expertise on what to expect when you buy a home.

What’s Happening with Mortgage Rate, and Where Will They Go From Here?

What’s Happening with Mortgage Rates, and Where Will They Go from Here?

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:

Just a few months ago, Freddie Mac projected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae forecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.

Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:

“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”

Where Are Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):

“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

In a recent realtor.com article, another expert adds to the conversation:

Danielle Hale, Chief Economist, realtor.com:

“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”

What Does This Mean for You if You’re Looking To Buy a Home?

With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.

If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).

Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.

Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.

Bottom Line

Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Let’s connect to begin the process today.

15 Common Tax Deductions For The Self-Employed

Kemberley Washington

Forbes Advisor Staff

Updated: Apr 1, 2022, 4:16pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

15 Common Tax Deductions For The Self-Employed

Getty

If you’re self-employed, such as a freelancer or independent contractor, one question is likely top of mind at tax time: How can I reduce my self-employment taxes?

Most self-employed people want to use every deduction to which they’re entitled to reduce their taxes but may not know what they’re entitled to.

Whether you operate at a loss or profit, here are 15 types of tax deductions that you don’t want to miss.

1. Credit Card Interest

If you made business purchases on your credit card, you might be able to deduct credit card interest on your federal tax return.

The IRS considers qualified business purchases as ones that are “ordinary and necessary” for the operation of the business. These can include your cell phone, internet, meals, salaries and wages, rent, utilities and interest.

2. Home Office Deduction

If you’re employed by a company, you’re no longer able to take the home office deduction. But if you’re self-employed and use part of your home for business, you may still qualify—even if you’re a renter. There are two options available to claim at tax time—the simplified option and the regular method.

Whichever method you choose, your home office must meet two requirements.

First, the IRS requires you to use it regularly and exclusively, which means that the office is used only for business purposes.

Next, it should be your principal place of business, which means that you use your office to have meetings and complete work. So if you routinely held meetings outside of your home, your home office may not qualify for the deduction.

The simplified option: You can use the simplified option to quickly determine your tax deduction. Simply multiply your office’s total square feet by $5 (up to a maximum of 300 square feet). If your home office is 300 square feet, then, you are entitled to take a deduction of $1,500 on your tax return.

The regular method: With this option, your tax deduction is based on the percentage of your home that your home office occupies. First, divide your home office square footage by your home’s overall square footage. Then, multiply the percentage you get by the sum of your home’s total allowable expenses to get the permissible deduction. If your home office was 300 square feet and your home was 1,500 square feet, you would deduct 20% of your allowable expenses (300/1,500 = 0.2).

With this home office deduction, you can claim home-related expenses only, such as rent, mortgage interest, insurance, taxes and utilities.

3. Training and Education Expenses

If you paid for work-related education expenses during the year, you might be able to take a deduction on your tax return. Your payment must be for education that maintains or improves your skills in your current line of work. However, if the education qualifies you for a new job or type of business, it may not be considered deductible.

For example, if you provide home repair services and decide to take a home repair education course, you can claim it as a tax write-off. Since this course maintains and improves your current skills, it’s considered deductible.

If eligible, you can deduct tuition, books, supplies, fees and transportation costs, among others.

4. Self-Employed Health Insurance Premiums

If you’re self-employed, health insurance can be costly—but you can deduct it from your taxes. Amounts include health care insurance premiums you paid for yourself, your spouse, dependents and any children under 27 who are on your health plan, regardless of whether you claim them on your return.

You have to report a net profit to use this deduction. If you didn’t, you can instead claim your premiums as an itemized deduction on your Form 1040 federal tax return, Schedule A.

5. Business Mileage

If you use your car for work, whether it’s driving to meetings or making deliveries, you can deduct your mileage on your tax return. However, if you use your car for personal and professional trips, you can only deduct business mileage.

Like with the home office deduction, you’ve got two options when it comes to claiming mileage on your taxes.

The standard mileage rate is a specific rate you can multiply against the business miles you drove during the year. For the year 2021, the standard mileage rate is 56 cents per mile. For instance, if you drove a total of 10,000 business miles, you could deduct $5,600.

To claim the standard mileage rate, you must meet the following conditions:

You must own or lease the car
You must operate five or fewer cars at one time
You must not have claimed depreciation on your cars

Note: If you choose the standard method for a car you lease, you will need to use it throughout the vehicle’s lease.

The actual expense method allows you to deduct the actual business costs to operate the car. If you use the vehicle for business and personal needs, you will have to determine which portion is for business.

Whichever method you choose, it’s best to track your business mileage by keeping a log recording the dates and types of trips, odometer reading and any business expenses, like gas, oil, licenses, registration fees, repairs, tires, insurance, lease payments and depreciation.

Also, you should calculate the deduction amounts under both methods and choose the largest deduction. If you’re using an online tax software program, it’ll request you enter both your actual vehicle expenses and mileage for the year. It’ll then calculate the best deduction for you.

6. Phone Services

What you pay for cell phone services for your business is deductible. Let’s say your annual cell phone bill is $2,000 and you use 30% for business; you’d be entitled to a tax deduction of $600. You should choose a recordkeeping system to determine your business usage.

However, the rules differ for your home phone services.

The first phone line in your home isn’t deductible, even if you have an office at home. However, you can deduct amounts paid if you incur business long-distance charges or have a second phone line reserved for business use.

7. Qualified Business Income Deduction

The qualified business income deduction allows some small business owners to exclude up to 20% of their business income from federal taxes.

Business owners may qualify for this deduction for tax years 2017 through 2025. You can deduct this amount if you’re a sole proprietor, an S-corporation, or a partnership. You aren’t required to itemize deductions to qualify.

8. Business Insurance Premiums

If you operate a small business, you can take a deduction for business insurance premiums paid. Generally, you can only claim the amount for the tax year it relates to.

For instance, if you paid $10,000 on Jan. 1, 2021 for a two-year business insurance policy, you can deduct only $5,000 for the year paid. You’ll need to deduct the remaining $5,000 the following year.

9. Travel Deductions

You can deduct travel expenses when you’re on business travel. However, the deduction can’t be lavish or extravagant, nor can it be used for personal reasons. Some examples of travel expenses are airline tickets, taxi or ride-sharing fares, hotel and lodging, baggage fees and dry cleaning expenses.

The IRS considers business travel that requires you to be away from your home longer than a work day and requires you to get rest while away.

10. Self-Employment Tax Deduction

The IRS imposes a 15.3% of self-employment tax on net earnings of self-employed people. Your net earnings are determined by subtracting your business deductions from business income. The rate consists of two parts: 12.4% for Social Security and 2.9% for Medicare.

For example, if your net earnings for 2021 are $25,000, your self-employment tax is $3,825 ($25,000 x .153%).

For 2021, the first $142,800 of net earnings is subject to the total self-employment tax. However, if you earn more than this amount, the remaining amount is subject to the 2.9% Medicare tax only.

The IRS allows you to deduct 50% of your total self-employment tax on your tax return.

11. Advertising Deduction

Generally, you can deduct the advertising expenses you paid for your business. The costs of keeping your name in front of the public are an example of deductible advertising expenses. Some examples of advertising expenses are TV, radio, social media marketing fees, commercials, or direct mailing.

12. Rent Deduction

If you paid rent for the use of property you don’t own, you can deduct it as a business expense. However, you can’t deduct any rent paid if you own a percentage of a building.

In most cases, rent can be deducted only in the year it has been paid or incurred. Let’s say you paid $36,000 in rent up front for the next three years starting on Jan. 1, 2021.

Generally, for 2021, you can only claim $12,000 as a rent deduction. Any remaining amounts are deductible in the following years for $12,000 each.

Also, you should familiarize yourself with the IRS’ additional rules for rent deductions to ensure you file this deduction correctly.

13. Start-up Expenses

In general, you must deduct business start-up expenses over a period of time, up to 15 years. However, business start-up and organizational costs paid after Oct. 22, 2004 are immediately deductible up to $5,000 total.

Costs associated with creating, acquiring, or investigating a business are included in start-up costs. Organization costs include what it takes to set up a corporation or a partnership. Some examples include legal fees paid to a lawyer to incorporate your business.

14. Club and Membership Dues

Generally, if you paid club and membership dues for pleasure, social, recreation or business, you can’t deduct them. However, you can deduct dues paid to the following organization as long as their sole purpose isn’t to conduct entertainment activities for members and guests:

Boards of trade
Business leagues
Chambers of commerce
Civic or public service organization
Professional organizations such as bar associations or medical associations
Real estate boards
Trade associations

15. Retirement Savings

You can deduct contributions you make to a qualified plan, such as a 401(k) plan or SEP IRA. Amounts may include contributions you made for an employee or your own retirement. The deduction limit for your contribution to a qualified plan depends on the kind of plan you have.

You should speak with a tax professional to help you determine your deductible amount.

Reasons Why It’s Still A Sellers’ Market

It’s Still a Sellers’ Market

It’s Still a Sellers’ Market [INFOGRAPHIC] | MyKCM

Some Highlights

Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. There’s a reason why 72% of people believe it’s a good time to sell.
Don’t miss out on this unique opportunity. Let’s connect so you can take advantage of this hot sellers’ market.

March 29, 2022, Mortgage Rates per Forbes Advisor

Today’s Mortgage Rates: March 29, 2022—Mortgage Rates Climb

Mitch Strohm

Editor

Published: Mar 29, 2022, 10:18am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Today’s Mortgage Rates: March 29, 2022—Mortgage Rates Climb

Mortgage rates rose today, but if you’re interested in buying a home or refinancing your current home, you still have a shot at locking in a historically low rate.

The average rate on a 30-year fixed mortgage is 4.89%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.08%. The average rate on a 30-year jumbo mortgage is 4.90%, and the average rate on a 5/1 ARM is 3.27%.

Related: Compare Current Mortgage Rates

Loan Term	Rate	Change	Rate Last Week
30-Year Mortgage Rate	4.89%	0.33%	4.56%
15-Year Fixed Rate	4.08%	0.27%	3.81%
30-Year Jumbo Mortgage Rate	4.90%	0.37%	4.53%
5/1 ARM Rate	3.27%	0.11%	3.16%
Source: Bankrate.com

30-Year Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage rose to 4.89%. Last week, the 30-year fixed was 4.56%. The 52-week high is 4.89%.

The 30-year fixed mortgage APR is 4.91%. At this time last week, it was 4.57%. Here’s why APR is important.

At an interest rate of 4.89%, a 30-year fixed mortgage would cost 530 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be around $90,843.

15-Year Mortgage Rates

Today, the 15-year fixed mortgage rate is 4.08%, higher than it was one day ago. Last week, it was 3.81%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 4.12%. Last week it was 3.85%.

At today’s interest rate of 4.08%, a 15-year fixed-rate mortgage would cost approximately 744 per month in principal and interest per $100,000. You would pay around $33,867 in total interest over the life of the loan.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate sits at 4.90%, higher than it was at this time last week. The average rate was 4.53% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 4.90% will pay 531 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around 3,980, and you’d pay roughly $682,962 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage Rates

The average interest rate on a 5/1 ARM is 3.27%, higher than the 52-week low of 2.82%. Last week, the average rate was 3.16%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.27% will pay 436 per month in principal and interest.

Calculating Mortgage Payments

For much of the population, buying a home means working with a mortgage lender to get a mortgage. It can be tricky to figure out how much you can afford and what you’re paying for.

Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

Home price
Down payment amount
Interest rate
Loan term
Taxes, insurance and any HOA fees

What you can afford depends on a number of factors, including your income, debt, debt-to-income ratio, down payment and credit score.

You also want to consider closing costs, property taxes, insurance costs and ongoing maintenance expenses.

The type of loan you choose can also affect how much house you can afford. When shopping for a loan, think about whether a conventional mortgage, FHA loan, VA loan or USDA loan is best for your particular situation.

Getting Preapproved for a Mortgage

Mortgage preapproval represents a lender’s offer to loan you money based on your financial circumstances and specific terms.

You can start the preapproval process by gathering documents your lender will need, including your:

- Social Security card
- Recent W-2 forms
- Pay stubs
- Bank statements
- Tax returns

The lender you select will then guide you through the preapproval process.

A Key To Building Wealth Is Homeownership

The link between financial security and homeownership is especially important today as inflation rises. But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

Owning a Home Is a Building Block for Financial Success

A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter (see visual below):

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month.

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

To sum it up, NAR says it simply:

“Homeownership has always been an important way to build wealth.”

Bottom Line

The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, let’s connect today.

Maui County 2023 Budget includes 1 Million for First Time Home Buyer Assistance

“Mayor delivers $1.045 billion proposed budget to Maui council

By Wendy Osher
March 25, 2022, 8:53 AM HST
* Updated March 25, 9:37 AM

Maui Mayor Michael Victorino delivered his proposed $1.045 billion budget to the Maui County Council on Thursday. This represents an increase of $206.1 million over FY 2022, or an increase of 23.9%.

Revenues in FY 2023 will fund a proposed operating budget of $794 million (an increase of $110.8 million or 16.2%); and a capital improvement budget of $251 million.

He said the proposed budget maintains all necessary county services.

“To assist hard-working families,” Mayor Victorino said he proposed adjustments to the owner-occupied tax rate, and adjustments in real property tax rates for other classifications.

Once again, $10 million is set aside in countywide costs, specifically for recovery and relief efforts for COVID-19 and other unforeseeable events. He also proposed an increase to the Emergency Fund, seeking an appropriation of $3.4 million to mitigate and respond to any emergency without affecting funding or other services.

Highlights include the following:

Housing:

$2.94 million appropriation to the Affordable Housing Fund
$1 million for the First Time Home Buyers Program – The program provides downpayment assistance of up to $30,000 for new homeowners.
$1.5 million for feasibility studies on County-owned land to identify infrastructure needs for attainable housing.
$1 million to begin work on Imi Kala St. extension – a vital piece in the future development of attainable housing.
$2 million to address culvert and drainage on Waiʻale Road to accommodate future attainable housing in Wailuku.

Culture and Arts:

$43 million in general obligation bonds for Hālau of ʻŌiwi Art to foster the art of hula and other cultural practices.
$200,000 to support Hālau Keʻalaokamaile’s capital campaign.
$150,000 to Kaʻahumanu Church in Wailuku to help restore the deteriorating structure.
$150,000 to the Bailey House Museum to help with restoration efforts.

Parks and Recreation Facilities:

$10 million War Memorial Gym – repairs to structure, replacement of flooring and bleachers, installation of air conditioning.
$7.2 million War Memorial Stadium.
Requested funds for assessment of the acquisition of 52 acres to create a new Pulelehua County Park.

Infrastructure:

$33.1 million for road improvements – including design for the reconstruction of Lower Main Street, Lahainaluna Road, South Kīhei Road and Makawao Ave.; construction of Lower Kula Road and the Pukalani Terrace subdivision; and improvements to Kamehameha and Wākea avenues.
$5 million for Upper Kula water transmission improvements.
$5 million for West Maui recycled water expansion.
$3.1 million for the Lahaina Wastewater Reclamation Facility R-1 process expansion.

Public Safety:

Enhanced training and proper equipment for firefighters, police officers, ocean safety officer, and emergency management personnel.

Climate Change, Resiliency, Sustainability:

$1.3 million to implement recommendations from various studies and plans on climate change, resiliency and sustainability.

The proposed operating budget calls for a total of 157 expansion positions from all sources and funds. Mayor Victorino noted, “Our departments have been doing more with less while being creative to accomplish the needs of our community.” The budget proposes 36.5 equivalent personnel to expand services at County beach parks.

Given the impacts of COVID-19, Mayor Victorino said it’s “more vital than ever” to diversity the economy. This includes a commitment to support diversified agriculture through a $1.5 million micro grants program, $450,000 for the Kula Agricultural Park, and $1 million for the Lānaʻi Agricultural Park.

Mayor Victorino noted that there’s also $1.3 million included in the budget for agricultural promotion and technology to support the Maui Farm Bureau, Farmers Union United, and the Hawaiʻi Taro Farm, LLC.

“I strongly believe with responsible planning and the right investments, together we can restore essential services today, while laying the foundation for a healthy, thriving community for generations to come,” he said in a letter to the Council.”

Are You Wondering If This Is The Year To Buy A Home?

Are You Wondering if This Is the Year To Buy a Home?

Are You Wondering if This Is the Year To Buy a Home? | MyKCM

Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? If you’re a renter, chances are you’ve asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.

To make an informed and powerful decision, the first step is understanding what’s happening in today’s housing market so you can determine which option is the better long-term financial decision for you.

Rents Are Going Up Again This Year

Rents are skyrocketing right now. Data from realtor.com shows just how much rental prices are surging throughout the country. The graph below highlights rental unit price increases over the past year:

If you’re a renter and plan on signing a new lease, your monthly costs are likely to go up when you do. Those rising costs can have a big impact on your financial goals, including any plans you’re making to save for a home purchase.

Homeownership Offers Stable Monthly Costs

Of course, one of the key benefits of owning your home is that you’re able to lock in and stabilize your payments for the duration of your loan. That’s not the case when you rent.

While rents are already on the rise, there’s a good chance many people will see their rental costs increase even more this year. As Danielle Hale, Chief Economist at realtor.com, says:

“With rents already at a high and expected to keep going up, rental affordability will increasingly challenge many Americans in 2022. For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor. . . .”

So, if you’re ready to become a homeowner, waiting any longer may not make financial sense. Instead, escape the cycle of rising rents and enjoy the many benefits that come with homeownership today.

In addition, there is equity appreciation accumulating in the shadow and mortgage interest tax deductions. And if it’s your primary residence and you sell after 2 years, you may have tax free capital gains. You would need to discuss this part with your tax preparer.

Bottom Line

Starting your journey towards homeownership can pay off significantly this year. If you’re financially ready today, let’s connect so we can discuss your options.

Spring Cleaning Checklist For Sellers

Spring Cleaning Checklist for Sellers

Spring Cleaning Checklist for Sellers [INFOGRAPHIC] | MyKCM

Some Highlights

If you’re thinking about selling your house this spring, here are some things you’ll want to tackle before you list.
Spend your time on tasks that make it feel inviting, show it’s cared for, and boost your curb appeal.
To determine the full list of things you’ll want to tackle for your home, you need the opinion of a trusted expert. Let’s connect to help make sure your house shows well this season.

Part of my preparing to sell includes going through the property and making suggestions to show best including curb appeal and staging.

Maui Real Estate Stats Feb. 2021 vs. Feb. 2022

Feb 2021 vs Feb 2022