Is it the right time for you to upsize your home? If your business is on the upswing, many business owners take advantage of this to upsize their homes. You want to enjoy the rewards of your hard work in your business. Especially since the pandemic, though, it's more important than ever to evaluate your options.
The Marketplace
While evaluating your company's foot in the marketplace, making sure you've got a good understanding of the local and national real estate market will help you make better selling and buying decisions. Working with a local real estate expert like Megan Hannah can be a great way to get to know the local community and market.
Understanding the national real estate market and comparing it with your local real estate market shows how your local market stands up in the national arena, so you have a better idea of what to expect locally. For example, the median price of a Portland home is $535,000 at present. When looking at your higher-end housing, this information puts pricing in perspective.
Ensuring you've got a reasonable understanding of the different "market cues" helps analyze the market data. For instance, depending on how long you plan on living in your new home, you'll want to consider the area’s potential with schooling and employment options and how slowly or quickly the population is growing.
Key housing indicators on the national level include mortgage rates, current home sales, and homeownership rates. So again, before deciding to upsize your home, gather all the facts on the real estate market and consider other factors like your personal and business finances.
Protecting Your Assets
Many business owners put their homes under their limited liability corporation (LLC). It's an effective method for protecting your assets, including your home. However, there are many advantages and disadvantages to an LLC. Before investing too much time or money, the IRS reminds us that each state has different regulations and benefits, so check with yours to start.
It's possible to avoid hefty legal fees because an LLC offers more protection to a homeowner than standard home insurance. LLCwisdom.com clarifies that if a homeowner is sued but the property is in the name of the LLC, then this particular asset does not factor in settlements.
Of course, a popular benefit to forming an LLC is the tax benefits. Because an LLC has no specific federal tax classification attached to it, it means that the LLC offers flexibility with annual taxes. However, many states do not support asset protection for single-member LLCs, so, again, check with your state regulations.
Review your current financial situation and the real estate market for your area, then make the decision that's right for you, your business, and your family on whether the time is right for you to upsize your home now or in the future. Reach out to Megan Hannah for expert advice and help in navigating the process. Call (541) 270-7479 or complete this form.
Comments