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South Fayette
Real Estate is
Booming
by Bonnie Loya
South Fayette is a
booming area - Why?
There are many reasons:
1) Location – located in close proximity to
Washington County, Southpointe, Downtown
Pittsburgh, the airport, and Wexford, you
can get anywhere you want in a matter
of minutes. I-79, I-376, and Rt. 50 are at
your doorstep. If you are a dual working
family, you can have a great compromise or
“halfway point” for a commute.
2) Shopping- easy access to grocery
stores, Robinson Town Centre, and so much
more.
3) School District – practically brand new
schools and outstanding academics and afterschool programs (the school
district was ranked 8th in the state by the Pittsburgh Business Times for
2013, and was added to the League of Innovative Schools as well).
So buying a home in South Fayette is a “no-brainer”! With a terrific mix of
resale and new construction, there is no question that you can find the “right
home,” but how do you buy to maximize your investment?
There are 4 strategies that I share with my clients to maximize their
investment:
1) Increasing your investment due to inflation: The annual inflation
rate for the United States was 1.5% from March 2013 through March 2014
(as reported by the U.S. government on April 15, 2014). So if you purchased
a home for $300,000 in March of 2013, the increase in price due to inflation
alone would be 1.5% or $4,500 which means your home is worth $304,500. If
the inflation rate stays the same and is compounded annually then next year
your home will be worth $309,067.
2) Increases due to market value: As a Realtor with Coldwell Banker
Real Estate, I have access to the West Penn Multi-List (also referred to as the
“Multilist”). Many areas throughout Pittsburgh have experienced substantial
increases in sales price since 2012. In west Allegheny County (where South
Fayette is located) the growth was 5.07%. What does that mean to you?
The potential increase in equity for a $300,000 home from 2012 to 2013 is
$17,100 ($300,000 x 5.07% = $17,100).
3) Leverage: This is a term that generally means to multiply your gains
or losses. In real estate, we usually want to increase “gains.” That means we
need to increase the equity that you have in your home. There are several
ways to do this: a) Home improvements/ renovation, adding amenities –
which ones will give you the best ROI (return on investment) will be the
topic of my next article – so stay tuned! b) Pay down the principal on your
loan (or Early Payoff).
4) Early Payoff: This is a great way to save money and increase equity
— how? Suppose you have a mortgage of $300,000 with a 4.5% interest
rate over 30 years or 360 months - that creates a mortgage payment of
$1520.06/month (principal and interest). If you pay 1 additional payment/
year to the principal (only) you will pay off the loan in 301 months!
That is a savings of 51 months x $1,520.06 of mortgage payments or
approximately $77,000 in savings. What you do with that money is
entirely up to you…
Thank you for taking the time to review this article. I would love to
speak with you in person about ma