My Home, My InvestmentMy Home, My Investment

Darouny (D) KommanyDarouny (D) KommanyResidential & Commercial SpecialistResidential & Commercial Specialist

The Kommany Group, LLCThe Kommany Group, LLC601-454-5714601-454-5714

www.JacksonPropertyInfo.comwww.JacksonPropertyInfo.comDK@JacksonPropertyInfo.comDK@JacksonPropertyInfo.com

A Home, an InvestmentA Home, an Investment

How many renters?How many renters? ManyMany

How many home owners?How many home owners? Not EnoughNot Enough

Renting Vs. BuyingRenting Vs. BuyingRentingRenting AdvantagesAdvantages

Little responsibilitiesLittle responsibilities CostCost Low CommitmentLow Commitment

DisadvantagesDisadvantages Pay your landlord, 100% ExpensePay your landlord, 100% Expense Rent usually increases after lease termRent usually increases after lease term NeighborsNeighbors Area Vs PriceArea Vs Price RulesRules

Total Annual Rent PaymentsTotal Annual Rent Payments

MonthlyMonthly 1 Year1 Year 3 Years3 Years 5 Years5 Years$500$500 $6,000$6,000 $18,000$18,000 $30,000$30,000

$1,000$1,000 $12,000$12,000 $36,000$36,000 $60,000$60,000

PurchasingPurchasing

DisadvantagesDisadvantages Money i.e. down payment, closing, etc. Money i.e. down payment, closing, etc. CommitmentCommitment

AdvantagesAdvantages Pay yourself, EquityPay yourself, Equity DeductionsDeductions

Interest rate & PMIInterest rate & PMI Real Estate TaxesReal Estate Taxes OthersOthers

Many Mortgage ProgramsMany Mortgage Programs

Purchasing ContinuedPurchasing Continued Based on 100K@6% 30 yrsBased on 100K@6% 30 yrs

Tax DeductionsTax Deductions

Schedule A - DeductionsSchedule A - Deductions Real Estate Property TaxesReal Estate Property Taxes Interest PaidInterest Paid PMI PaidPMI Paid Closing Costs (Points)Closing Costs (Points)

Form 5695Form 5695 Residential Energy CreditsResidential Energy Credits

Profits on Sale of Your Home Not TaxedProfits on Sale of Your Home Not Taxed(restrictions apply)(restrictions apply) OthersOthers

How’s the Market? Oh MyHow’s the Market? Oh My What started this?What started this?

2000 – Federal Reserve Board Chairman2000 – Federal Reserve Board Chairman Flexible Mortgage ProgramsFlexible Mortgage Programs

MediaMedia LocalLocal

Transactions from Transactions from January 1 – July 10January 1 – July 10

Area 2008 2007 2006

Clinton 199 211 241

Southwest 686 587 579

Northeast 299 371 400

Madison/Ridgeland/Canton 666 788 830

Reservoir 393 493 505

Flowood, Pearl 195 205 162

Crossgates/ Brandon 262 333 321

Total Transaction 2,700 2,988 3,038

Should I Buy?Should I Buy?

5 Reasons to buy now5 Reasons to buy now Great Prices in your interested area Great Prices in your interested area Length of stay in the home (5 yrs or more)Length of stay in the home (5 yrs or more) Rent rivals a mortgage paymentRent rivals a mortgage payment You’ve found the right houseYou’ve found the right house You moved in a home with equity & leave You moved in a home with equity & leave

with tremendous profitswith tremendous profits

Example of buyer’s investmentExample of buyer’s investment

List price was:List price was: 135,900 135,900 129,900 129,900 125,700125,700 Negotiated Price Negotiated Price 116,000116,000

$19,700 in instant equity$19,700 in instant equity 3br/2ba plus bonus room3br/2ba plus bonus room 2,200 sq ft,2,200 sq ft, Great schools & desirable neighborhood, etc.Great schools & desirable neighborhood, etc.

Example of selling clientExample of selling client Current Home – Listed for $65,900Current Home – Listed for $65,900

2br/1ba2br/1ba 900-1,000 sq ft900-1,000 sq ft Equity where she was able to give upEquity where she was able to give up In order to Gain:In order to Gain:

A NEW HOMEA NEW HOME HOME WITH EQUIYHOME WITH EQUIY UPGRADE 4BR/3BAUPGRADE 4BR/3BA GREAT SCHOOLS & LOCATIONGREAT SCHOOLS & LOCATION

Should I Buy? Should I Buy?

5 Reasons to wait5 Reasons to wait You’ve lived in your home less than 2 yearsYou’ve lived in your home less than 2 years Your job security is uncertainYour job security is uncertain Length of stay in the homeLength of stay in the home Credit Challenged &/or No MoneyCredit Challenged &/or No Money Existing home locationExisting home location

Steps to homeownershipSteps to homeownership

Get a good real estate agentGet a good real estate agent ExperiencedExperienced KnowledgeKnowledge

Get a good mortgage officerGet a good mortgage officer Approval versus AffordabilityApproval versus Affordability

AreaArea Your life plansYour life plans

You Found a Home, Now What?You Found a Home, Now What?

Write the OfferWrite the Offer CMACMA NegotiateNegotiate

ContractContract Due DiligenceDue Diligence

Physical Due DiligencePhysical Due Diligence Financial Due DiligenceFinancial Due Diligence Legal Due DiligenceLegal Due Diligence Resalable Due DiligenceResalable Due Diligence

CloseClose

Final WalkFinal Walk Review Paper workReview Paper work OthersOthers

Thank you and please visit Thank you and please visit www.JacksonPropertyInfo.comwww.JacksonPropertyInfo.com

Darouny (Dee) KommanyDarouny (Dee) Kommany601-454-5714601-454-5714