Rent Vs. Buy

 People often ask me if they should rent or buy a property and there are some advantages and disadvantages to both. It can be a daunting task to determine which is the best way to move forward but hopefully this article will give you some clarity.
ADVANTAGES TO RENTING INSTEAD OF BUYING
someone manages the property for you
if something breaks it’s not your responsibility to fix or pay for it. This reduces your liability and unexpected costs that can pop up.
moving from out of state
 Since buying is an investment, it does take getting a feel for the different areas to be able to make an informed decision as to where you want to buy. This is especially good for someone who gets hired out of state and must move quickly but doesn’t have a chance to research the area they are moving to.

ADVANTAGES TO BUYING INSTEAD OF RENTING
you can make it your own
Many landlords restrict what you can change or modify in the property, so if you don’t like something you’re stuck with it. But even if they did allow you to make changes who would want to spend money to improve a property they don’t own.
Renters are restricted by their landlord on what they can modify on the home, when you own your home you can invest to customize or renovate your home! You can turn it into something which is truly yours that reflects your taste and preference. By doing this you are also adding value to your home which benefits it’s long term value.
tax credit
In home buying you can take advantage of reducing your taxable income by both the amount you pay in property taxes as well as your mortgage interest on the loan. So another disadvantage in renting is that you make your payment but are not able to reduce your income tax by any amount of rent that you paid.
automatic savings account!
What I mean by this is equity (which is the difference in what you owe and what the home is worth) is built up in a home as the market rises and as you pay down the mortgage. Several years ago, a group of families moved into the West End when it had just started to transition. They bought their homes for less than $100,000 and as the area changed, with more and more people moving in, the prices began to rise. They rode the wave up and now there is a home in the area that just went under contract for over $400,000! So, the purchase of a home is one of the greatest investments you can make in your lifetime!

DEBUNKING COMMON OBJECTIONS TO BUYING
down payment and closing costs
I’ve talked with a lot of people that seem to feel as if buying is out of reach for them, once they hear about the down payment, closing costs, and this mountain of money they seem to need to cover the upfront costs of a purchase. What many don’t know is that there are several down payment assistance programs available where you can get as much as 5% of your purchase price and you don’t have to pay it back! I have a friend that closed recently that only had to bring a little over $700 to the closing table!

being locked into an area and won’t be able to move if I need to.
While this is seemingly the case there are many options available to the homeowner. Depending on the state of the market at the time, they might be able to sell their home and make a nice profit! If this is not the case and they have too little equity built up in their home they can rent it out, cover their mortgage and then some, until the market goes back up.

        Overall I would say that while renting can help you overcome some short-term hurdles, buying is the best long term solution! Home ownership is a great way to build wealth for both you and your family and to stake your claim in real estate. I used to sell cars which are nice to look at but depreciate in value, while homes appreciate in value to the benefit of their owner. Come see me and I’d love to help you in your path to home ownership!

Hidden Gem: Historic Collier Heights

This month my family and I have enjoyed learning new things about our history. We have been able to uncover a good amount of “Hidden figures” that we’ve never heard of before.

Last year while doing at bit of neighborhood research I stumbled across a community called Historic Collier Heights. I loved the mid century architecture and the uniqueness of each home. One thing that I’ve learned in my real estate journey is that each home tells a story of the people that once lived there. You just have to look a little bit deeper to see it.

Historic Collier Heights was constructed in the 1950’s. This is the first neighborhood built, designed, financed, and constructed by African Americans for African Americans. During that time their weren’t many financing options available to obtain a home loan due to  Jim Crow laws and red lining. Often times when Blacks would begin to move into white neighborhoods it would drive the value of the property down which caused whites to flee to the suburbs. 

That’s when Collier Heights was formed! Collier Heights was founded by some of Atlanta’s Black elite including business man Herman J. Russell, Martin Luther King Sr., Ralph David Abernathy, and Civil Rights Attorney Donald Lee Howell just to name a few. Collier Heights consists of black doctors, attorneys, educators, and entrepreneurs. 

Recreation room on Chalmers Dr. Photo Courtesy of Kevin Polite

In addition to the lack of housing options, Atlanta’s entertainment life was limited for African Americans as well. Collier Heights consists of mid century ranch style homes with manicured lawns and large basements. During that time residents referred to their basements as recreation rooms. The recreation rooms were used to entertain and host lavish gatherings and parties. I’ve even heard that there is a home in the neighborhood with a bowling alley inside! During the time when we didn’t have the opportunity to go to our local bowling alley or swimming pool, residents in Collier Heights built and constructed their own.

Herman Russell’s former home located on Shorter Terrance. Photo courtesy of Jena Kennedy

Recently I met a long time neighbor that designed and built her home in the late 50’s and she is so excited to see new young families move into the neighborhood that will keep on the legacy and pride of what Historic Collier Heights has always stood for.

If you’re interested in learning more about Collier Heights, or interested in purchasing a home in this stunning community contact me here. 

There's History In Every Home

There is something special about the character and architecture of the homes that draw people to the Historic West End. Along with the community and the neighborhood pride, one of the most significant things about these homes is the stories they tell. A home I listed and sold located on White Street SW is a prime example of this. The home belonged to some good friends of mine, the Crane Family.  Before the Crane’s purchased the home in 2009 the Underwood family occupied it for 80 years! After the father, R.S. Underwood and his wife passed away his daughter Juanita Underwood continued to live in the family home until her death in the late 90’s. A fellow neighbor knew a distant cousin of the Underwood’s and offered to clean out the house. Once he walked in he described that the home felt as if it was still in the 1940’s. There was a lot of vintage furniture; old calendars were hung up as well as a ton of newspapers. Amongst other things he stumbled on the diaries from the daughter Juanita.

I got the privilege to read through some of the personal memoirs and it was like reliving what the West End was like circa 1945. Juanita had just graduated from Brown High School and was working at the local bank processing statements. She mentioned going to the Gordon Theater a lot with her parents and even mentioned a good friend that had just been discharged from Fort McPherson! What was interesting was that she referred to the West End as another town. For example on April 4, 1947 Juanita wrote “Stopped in the West End after work and got some groceries. The sack tore and groceries spilled as it rained.” Pretty Cool! (Maybe not to other’s but I love this stuff!)

What I noticed most about reading the memoirs was the sense of togetherness and family that she had with the community. Neighbors would stop by daily. They would eat together, go to church together and helped each other out through rough times.

The White Street house is very special to me. It’s not because of the awesome character and the meticulous care that the Crane family has put into the home, but because of all of the memories I have in the home. Since 2012 when I met the Crane’s the White Street house has served people in many ways. From inviting neighbors over for a meal, to hosting weekly marriage groups for young married folks. The White Street house has been instrumental in bringing lots of different people together. Personally being a transplant in Atlanta and not having my parents in the same city, for me it’s been a safe place. It has been a place that I was cared for when I was sick, received fatherly financial advice on how to kill debt and steward our money better amongst lots of other things. The White street house has helped to facilitate so much care and love for this community. This is very similar to how it was used in the 40’s. I’m a so happy to know that the White Street house serves the same purpose today. My hope is that the new owners will be able to benefit from the home in the same ways that the Underwood and Crane family has and continue to create more stories of love and care for many years to come.