Monthly Archives: February 2020
Buying vs. renting a home: What’s the best move?
Many people make the decision daily on whether they want to buy or rent a home—however, it’s a choice that is not to be taken lightly. Like everything, there are various advantages and disadvantages to buying or renting a home. We’re here to break down those pros and cons to help make your decision process a little simpler.
Buying a home
Pros
Acquiring a home has numerous advantages that aren’t provided when it comes to renting. First, the financial benefits: when you purchase a home, you build equity. If the value of your home increases, then you have the opportunity to cash in on that value if you eventually sell. Also, there are potential tax benefits—if you choose to itemize deductions, you can itemize your mortgage interest when you file your tax return and thus cut your tax bill. Not only that, if you have a fixed-rate mortgage, you won’t need to worry about the rising cost of rent.
In addition to the financial perks, there are other substantial benefits. When you purchase a home, it’s truly yours. You don’t have a landlord to answer to, which means you don’t need to worry about seeking permission for home upgrades—you’re free to make all the renovations you desire. You also eliminate the possibility of your landlord selling the home and having to quickly scour for a new place.
Lastly, there are some intangible benefits. When you buy a home, you feel a sense of pride and accomplishment—you’ve finally achieved your lifelong goal of buying a home. While there is a sense of pride in being able to pay your rent and bills, finally reaching your goal of purchasing a home is an entirely different feeling. There is also a sense of belonging and stability. You now have a place you can truly call home for years to come.
Cons
Despite some of the amazing pros of purchasing a home, there are a few downsides to ponder. The most glaring drawback: it’s expensive. Let’s face it—buying a home costs a ton of money. Between closing costs, home inspections, and possible repairs, it can become egregious. It’s also a considerable amount of money upfront—a typical down payment is around 20% of the home’s cost. For example, if you are attempting to secure a home that costs $200,000, that would require a $40,000 down payment.
Another downside—when you own a home, repairs are solely your responsibility. From a new roof to broken air conditioning, there is an exorbitant number of things to be taken care of. Some things like fire, wind, or hail are covered by homeowner’s insurance. On a case by case basis, water damage is sometimes covered. However, the cost of home repairs can add up quickly and rapidly deplete your bank account.
Lastly, there is always potential to lose money if your home value declines. The environment, amenities, seasons, and maintenance are determinants of your home’s value. Bad schools, poor roads, or neighbors who neglect their property’s appearance are all factors that could drastically decrease the value of your home.
Renting
Pros
There are copious benefits when it comes to renting, like extreme flexibility. If you needed to quit your job, pack up, and move across the country, it’s more manageable to get out of a lease agreement than sell your home. Even if you wanted to move across the city, you have the freedom to do so, practically hassle-free.
Renting can also be significantly more affordable. It requires fewer upfront costs, aside from a security deposit, which is a fraction of what you’d spend on a down payment for a home. You also forego property taxes, which saves a notable chunk of money. You’re also not responsible for maintenance or repairs. All of those combined make your monthly payments more predictable—you’re not scrambling at the last minute for unforeseen costs.
Cons
While there are advantages when it comes to renting, like anything, there are also downfalls. One downside: your landlord can raise the rent, which could potentially cost you more in the long-run, compared to a fixed-rate mortgage. Factoring in the spiraling cost of rent is a tremendous thing to consider—according to CNBC, rents are rising at the fastest pace in two years. There are also no tax benefits, and there is no ability to establish equity. Various restrictions also apply when it comes to upgrades—most landlords won’t permit you to paint walls, install new appliances, or remodel. There is limited freedom on what you can change.
Deciding to purchase or rent a home is an enormous decision, and it’s not cut and dry either. There are various factors to think about when you’re questioning if you should continue renting or choose to make the big leap and acquire your own home. It’s critical to think about how long you want to stay in your home, how much money you have for unforeseen expenses, as well as if you’re carrying any debt. At the end of the day, it’s about you, your needs, and what works best for your lifestyle.
6 tips to save for your future home
So, you’ve decided you want to buy your first home. It’s an exciting time, but there are various things to consider—the most significant being a down payment. Standard down payments are approximately 20% of a home’s cost. If you’re purchasing a $200,000 home, your down payment could cost upwards of $40,000—that’s a considerable amount of money! It seems daunting to think about saving that much money, but it can be accomplished—here are some tips to help you start saving towards your first home purchase.
1. Determine a goal
If you haven’t already, determine how much you need to save. Set a definite goal and time frame, that way you have a tangible end within your reach. Then, set a monthly budget so you aren’t overspending and can accumulate as much money as possible. An essential thing to consider is ensuring you are debt-free—focus on paying off your debts before you acquire more. It’ll save you more stress in the long run if you pay off that student loan or credit card before making a big purchase like this.
2. Look into a savings account
If you already have a savings account, then great. However, there are more options than a traditional savings account that will help immensely when saving for a down payment. Look into a high-yield savings account or money market account. You’ll earn more interest than you would with a traditional savings account—the longer your money sits in the account, the more interest you earn, which ultimately puts you closer to attaining your goal of owning a home.
You can also consider a Certificate of Deposit, otherwise known as a CD. CDs enable you to set money aside for a predetermined time, so you earn a set amount of interest. There is less flexibility and liquidity, but this is ideal if you have a particular time frame where you want to meet your goal. However, it’s crucial to note that you could be subject to a fee if you prematurely withdraw funds.
3. Cut unnecessary expenses
When you’re preparing your budget, look at where you spend the most amount of money. If it’s unnecessary, cut it out. Things like going out to dinner or buying coffee start to add up—if you spend $5 per day on coffee, that totals up to $25 per week. It doesn’t sound horrible, but if you proceed to do that weekly, it costs $1,300 per year. Shocking, right? Imagine how much closer you’d be to your down payment if you simply brewed that coffee at home.
4. Pause saving for retirement
Odds are, you’ve probably begun saving for retirement. It may seem strange not setting money towards your 401(k) at first, but just remember, it puts you that much closer towards your goal of owning a home. If that idea scares you, just remember—it’s only temporary. You can start putting money towards your retirement again once you’ve purchased your home. However, despite what some websites may say, absolutely do not withdraw from your retirement account. You could be slapped with penalties and taxes for withdrawing early.
5. Set aside your bonus
Got a bonus or tax refund? Be responsible: put it into your savings—you’ll be thankful you did when you’re relaxing in your cozy breakfast nook, sipping on a hot cup of home-brewed coffee. As tempting as it is to solely use your refund on a new wardrobe or a fancy dinner, every dollar counts when you’re saving for a home.
6. Get creative
I can assure you, things are lying throughout your apartment and collecting dust. Scour and gather everything you’re not using, and sell them. Or, ditch the summer vacation. According to Business Insider, people fork over nearly $2,000 annually on summer vacations. I know—vacations are sometimes necessary, but foregoing your family trip this year will catapult you towards attaining your goal. Do you like animals? Start offering to pet sit or walk your neighbors’ dogs. Or, you could begin driving for a rideshare service or food delivery. Take that extra cash you earn and immediately put in your savings. You won’t miss it—I promise.
If you’ve done all of these but still need some backing, many credit unions offer down payment assistance programs for first-time home buyers. These programs help with home financing, loans for first-time buyers, and more. There are also various federal and state programs that offer similar support. However, it’s critical to keep in mind that you’ll pay more interest with a lower down payment.
Saving up for a home seems intimidating, and with such a large amount of money, it’s hard to imagine ever being able to save that much. These pointers will aid you in reaching your goal, so you can finally fulfill your aspiration of owning a home.
Have questions about buying your first home? We’re here to help!
How to file taxes for first timers
It’s tax season, which means now is the time to start thinking about how and when you’re going to file your taxes, so you can secure that refund. According to a TaxAct poll, more than a third of millennials rely on their parents to prepare their taxes. However, doing your taxes without your parents’ help has its advantages—you can better understand your finances, and you’ll know how to file your taxes in the future. Are mom and dad making you bite the bullet and file taxes on your own this year? Not sure where to start? Here are the steps you should take to file your taxes for the first time.
Determine your filing status
The first, and most critical step, is to determine your filing status. Your status defines your filing requirements, deductions, eligibility for credits, and your correct tax. It’s based on your age, marital status, and other factors.
Determining your filing status is vital because it impacts how much you owe the Internal Revenue Service (IRS) or how much of a refund the IRS owes you. If you’re unsure of your status, the IRS has a tool that can help you.
Gather necessary paperwork
You can’t file your taxes unless you have the proper paperwork. You need personal information, like a valid Social Security number, income and receipts, meaning any Social Security benefits or Unemployment Compensation, if applicable, as well as receipts from royalties, partnerships, or trusts.
You will also need your W-2 from employers, or a 1099 form, if eligible—for example, if you had any freelancing opportunities or side gigs. If you’re a college student, you might need a 1098-T form, which should be provided by your school. This includes information you’ll report to claim education credits, like tuition, scholarships or grants, and other related expenses. There are dozens of forms you potentially need, so be sure to review this list of some the most commonly used forms.
Decide how you want to prepare
You can prepare your taxes using online software or on your own. There are copious benefits to using online software—it’s very affordable, user-friendly, and fast. When you use online software, you can finish your taxes in as little as 30 minutes. Each software also has various tiers you can pick from based on your necessities and price levels.
Preparing taxes on your own can be beneficial, too. You save money, you can file anytime, and you gain a better comprehension of your finances. However, it leaves room for more error, so be patient and be thorough.
If your adjusted gross income (AGI) is less than $73,000 annually, you qualify to file your return for free using the IRS’s Free File Program, which enables you to use popular tax software for free. Simply use the Free File Online Lookup Tool at irs.gov, and the eligible programs are listed.
From there, you have two filing choices. You can file electronically, known as e-Filing, or by paper. e-Filing is fast, reliable, and has a faster processing time, allowing you to receive your refund promptly.
Paper filing has its advantages, too. There are fewer security risks because you aren’t entering personal information online, meaning you can avoid the possibility of identity theft. It’s also simple—all you do is fill out a form. However, paper filing has a longer processing time—it could take up to six weeks to receive your refund.
Select a standard deduction or itemized deduction
Deductions are expenses incurred throughout the year that can be applied to your taxes. They lower your taxable income and vary by federal and state level. There are two categories: standard and itemized.
Standard deductions are the most prevalent. The amount varies each year and is based on filing characteristics. Standard deductions are the most popular because the amount is already set, so there is no need to calculate anything.
Itemized deductions are expenses allowed by the IRS that reduce your taxable income. When you itemize on your tax return, you can select from several deductions rather than taking a flat-dollar amount. You can deduct on medical expenses, property taxes, or charitable contributions—just to name a few.
If you’re having difficulty deciding if you want a standard or itemized deduction, you’ll need to do some math. Add up your expenses you wish to itemize. If the value of the expenses you can deduct is more than the standard deduction, then you should itemize. Itemized deductions take more time to prepare, but they could potentially save you money in the long-run. However, you must have proof of your expenses—it’s imperative to keep records and save receipts.
Other important tips
So, now that you have the basics down, it’s essential to keep a few things in mind. First, file only one tax return, no matter how many jobs you’ve held in the last year. Also, be sure your parents aren’t claiming you as a dependent—if you’ve been claimed twice, it could result in an audit by the IRS, meaning they’ll need to verify you’re reporting information correctly and not committing tax fraud.
Lastly, and most importantly, give yourself enough time. When you scramble at the last minute, you could make potential errors that you otherwise would’ve caught. It’s best to start prepping at least two months before the tax deadline, which is April 18, 2023.
Key Takeaways
- The first, and most critical step, is to determine your filing status, because it impacts how much you owe the Internal Revenue Service (IRS) or how much of a refund the IRS owes you. If you’re unsure of your status, the IRS has a tool that can help you.
- The most common tax forms include your W-2 from employers, or a 1099 form if you had any freelancing opportunities or side gigs. If you’re a college student, you might need a 1098-T form, which should be provided by your school. Additionally, if you have health insurance through the Marketplace, you will need Form 1095-A.
- Gathering all your tax documents ahead of time can help you get the biggest refund and avoid errors that could lead to processing delays.
Once your return is accepted by the IRS, you can use Where’s My Refund to track when you’ll receive your refund. So, go ahead and start filing—that deadline will be here before you know it. Plus, the sooner you get started, the sooner you can score that refund.
Surprise your sweetheart: hot spots for Valentine’s Day in Georgia
We all know planning the perfect Valentine’s Day date night can be a struggle—it’s a never-ending cycle of pondering where to eat, what to do, or where to stay. Still deciding on if you want to enjoy a romantic night in the city or partake in a luxurious weekend getaway? We’ve got you covered. Here are some of our favorite restaurants, activities, and destinations right here in Georgia that are terrific for Valentine’s Day.
Restaurants
Canoe
Nestled along the banks of the Chattahoochee River, Canoe offers a rustic yet elegant atmosphere that is guaranteed to delight your senses. This fine-dining culinary gem offers award-winning cuisine from their Roasted Berkshire pork chop and Southern-style collards to their wood-grilled New York strip—all are sure to gratify your palate. Town & Country Magazine calls this unique setting the “most romantic restaurant in Atlanta.”
The Sun Dial
Situated at the top of the Westin in Downtown Atlanta, The Sun Dial, a rotating restaurant and Atlanta icon, offers sweeping views of the city lights below. Enjoy a prix-fixe, four-course dinner from their special Valentine’s Day menu created by award-winning chefs. Be sure to make reservations beforehand because this is a popular Valentine’s Day spot.
10 Degrees South
Located in Buckhead, 10 Degrees South is the country’s first South African restaurant. The eatery is deeply inspired by family tradition, and the cuisine is crafted by founder Justin Anthony’s parents, who coincidentally are the restaurant’s executive chefs. Their Valentine’s Day menu features dishes such as filet “Au Poivre,” a filet mignon topped with a Madagascan peppercorn sauce, and chicken curry made with traditional South African spices. The bungalow-inspired atmosphere and delectable fare make this culinary experience rated as one of the top 16 restaurants in Buckhead by Trip Savvy.
La Tavola
La Tavola, located at the heart of Virginia-Highland, offers genuine Italian cuisine from Executive Chef Jonathan Beatty. With the cozy, romantic ambiance and hearty dishes, you can’t go wrong with this trattoria for Valentine’s Day. Their menu offers a variety of traditional dishes, from tagliolini to zuppa di pesce, to desserts like chocolate pistachio torte—there’s something for everyone at this hot Italian spot.
Activities
Atlanta Botanical Garden
Get swept through 80 years of romance at the Atlanta Botanical Garden this Valentine’s Day for “Valentines in the Garden: Decades of Love.” Enjoy small bites from some of Atlanta’s most renowned chefs, live music, and more. From the 50s to the 80s, each decade is represented in different sections of the garden, with music and décor constituting accordingly. Dress for the decade of your choice and celebrate the night away!
Oakland Cemetery
For those seeking something unconventional, head over to Oakland Cemetery for “Love Stories of Oakland: Valentine’s Day.” Venture through more than 20 stops in this historic Victorian cemetery as your guide recalls the love stories of Atlantans in the years gone by, as well as hidden symbols of love throughout the hallowed grounds. If you’re looking to escape the traditional route this year, Oakland Cemetery is the way to go.
SkyView Atlanta
Towering over Centennial Park, the SkyView Atlanta Ferris wheel offers boundless views of downtown while relaxing in climate-controlled gondolas. Take in the vast sights with your sweetheart at this Atlanta staple. If you want to upgrade your experience, try the VIP gondola—it boasts Ferrari-style seats, a glass floor, and a longer ride time.
Flower Arrangement Workshop
Enjoy a fun-filled afternoon of embracing your crafty side at Flower Bar’s Valentine’s Day arrangement workshop. Bring your honey, and learn the ins and outs of making your own flower arrangement in this 90-minute class. Once your masterpiece is finished, bring it home with you, and display it proudly for all to see! Even better—all materials are provided, so no scrambling around at the last minute to find what you need.
Weekend Getaways
Chateau Elan Winery and Resort
Located in Braselton, the newly-renovated Chateau Elan is the ideal extravagant weekend getaway. Indulge in a four-course meal, enjoy a relaxing couple’s day at the spa, or partake in a round of golf—there’s something for everyone here. This picturesque resort offers sweeping views of the North Georgia foothills, and its romantic, Southern charm offers an intimate weekend for you to escape bustling city life.
Barnsley Resort
Nestled on historic grounds in Adairsville, Barnsley Resort is essential for those wanting luxury while experiencing all that North Georgia has to offer. Enjoy a guided horseback ride through the grounds of the resort, ride a UTV in the Appalachian foothills, or learn the art of fly fishing at one of the several ponds on the resort grounds. Rejuvenate at the redesigned upscale spa and experience ultimate tranquility. Stay at the Inn or an Estate Cottage. Whatever you do, Barnsley Resort is sure to provide a weekend of relaxation and resurgence.
Callaway Resort & Gardens
Callaway Resort & Gardens, in Pine Mountain, is an oasis that is calling your name. Whether you stay in the Lodge and Spa with views of Robin Lake, The Cottages, or The Villas with a secluded setting, you’ll be enchanted by the beauty this resort has to offer. They’re all about nature and offer numerous immersion activities that put you right in the heart of it all, like BirdFest, which occurs Valentine’s Day weekend. It features bird walks, nature-based workshops, live bird shows, and more. Callaway is also home to the Cecil B. Day Butterfly Center, one of North America’s largest butterfly conservatories. These beautiful, delicate creatures fly freely among the variety of tropical plants that are housed in the glass-closed environment. If you and your significant other are nature fanatics, this is a destination that is to die for.
Lake Rabun Hotel
The Historic Lake Rabun Hotel, a charming boutique hotel operating since 1922, is the quintessential getaway for those who want to experience the Blue Ridge Mountains and all it encapsulates. Each room exudes rustic charm and offers the perfect amount of privacy. The hotel also operates an award-winning farm to table restaurant surrounded by pines, oaks, and hemlocks. There are plenty of parks, rivers, and waterfalls located nearby, and if you’re tuckered out from outdoor activities, the Lake Rabun Hotel offers a luxurious spa. You can also shop at the various locally-owned stores in nearby Clayton, Dillard, and Lakemont Art Village. The Lake Rabun Hotel has everything you need.
Whether you’re looking for a thrilling date night in the city or an idyllic weekend escape, these will certainly make for a Valentine’s Day you’ll always remember in the years to come.