With the new year finally upon us, it's the perfect time to
slow down, take a deep breath, smell the roses. and take a nice draught of
decaffeinated coffee. And then get ready for another
three-hundred-and-sixty-odd days of potential personal and financial bliss
by launching 2001 with some simple steps that will make the rest of the year
that much easier.
Some of these steps might be simple resolutions to do things
differently: Create a spending plan that allows you to live comfortably
within your means; pay off credit card debt today; contribute the maximum
amount allowed to an Individual Retirement Account; and keep your home in
good shape.
Local real estate professionals offer their current and
prospective clients an impressive array of ideas for preparing for the New
Year. Some suggest practical bookkeeping type items, while others offered
practical thoughts about everyday living.
Realtor Jim Vaughn suggests going through a 2001 calendar
and writing in all the scheduled maintenance work and odd jobs that you know
need to be done or checked out.
"Hang it in a convenient place and use the calendar! Cross
each task off as it's completed," he says. "The trick to making this work is
that you can't go to bed until that item is crossed off the calendar."
Anything you're willing to put off for a day or two - like changing a filter
in the furnace - could easily wind up being put off for a year or two.
If you had done this last year, he says, your outside hoses
would be turned off and drained by now, gutters would have been cleaned
right after you saw the last leaf fall off your favorite tree, and that air
filter would have been checked.
Realtor Barry Moss suggests you resolve to keep receipts for
everything you have done to your home. All that work has tax implications
down the road because certain home improvement expenses can only be taken
when you sell your home.
Along slightly different lines, realtor Jeff Brier suggests
that "anyone who can and has not purchased a home do so." He adds, "Anyone
with past credit problems should make a resolution to correct them as it's
easier than ever to do so."
Bruce Majors says to begin your new year by focusing on your
upcoming mortgage deduction. "People start doing their taxes and, if they
have a tax advisor, are usually told between January first and April thing -
you must resolve to take advantage of any federal tax credits prior to their
expiration.
Ed Downs concurs: "At tax time, ask yourself why you don't
own property. In the past year, rents have increased to the point where they
actually match mortgage payments. Plus, you get to pay fewer taxes! Renters
who want to buy in the coming year should begin by scheduling a preliminary
meeting with their agent. In this first meeting, they can get a reality
check on their purchasing power. develop a strategy to become financially
ready to buy a home; and, get a preview of how the whole transaction works."
When you're sitting down to actually do your taxes this
year, Peter Goss suggests that prospective buyers do some imaginary but
creative number crunching of their own. Goss says that by doing some simple
comparisons of what your tax picture looks like today (the reality) versus
what it could look like if you already owned a home, .you'll have a sense of
what kind of tax break you might get by making the transition from renter to
owner."
Remember that you're allowed to ask for help - you're not
expected to know everything. The intricacies of all the issues involved
demand a well-informed mind and a helping hand. Remember, they (the pros)
are there to work with and for you – and they should have the answers you
need or know where to find them. These include real estate agents and
brokers, home inspection people, loan officers who specialize in mortgage
loans, real estate awyers, tax advisors, etc.
"Misplaced your Settlement Sheet (HUD- 1)?" offers Ed Downs
"Call your realtor for 'service after the sale.' The brokerages keep them on
file for years, and your realtor will be happy to forward a copy to your
accountant.
"Send off a quick letter or call to your mortgage company,"
says Michael Kaminiski, "to ask for the necessary forms and the appraisal
requirements so that your PMI (Private Mortgage Insurance) can be dropped
for the New Year .. and let the savings begin!"
With all this said and done, the ball is now in your court.
It's a lot to be done, but a year is a long time. To quote an old saw: "Easy
does it - but do it."
