Reasons to Buy Land Before the End of 2020

2020 has been a rough year for all of us. For many, life today looks nothing like what it did at the beginning of the year — but life does still go on. Big decisions like getting married and buying a home are still being made. While making those choices is particularly difficult right now, there are some silver linings.

The end of 2020 is actually a great time to invest in real estate. Real estate is generally a smart investment, no matter what the time of year. But some times are better than others. 

Below the team at SRC Land explains why 2020 is a good year for land buyers, and why real estate might just be the investment you’ve been looking for.

Buying Property in 2020

There’s no denying that this year has been unprecedented. The combination of an election year and a pandemic has collided with the other real estate trends that have been developing for years, all of which have come to make 2020 a particularly good time for those interested in buying a home or property.

1. Mortgage Rates Are Low

If you’re considering buying a home, you’re probably considering credit options. While SRC Land offers Harlingen owner-financed lots for those unable to access credit through traditional lenders, low mortgage rates may be one factor to consider if you’re wondering if buying a home before the end of 2020 is right for you. Specifically, mortgage rates have dropped significantly since their peak in 2018. In fact, mortgage rates have hit record lows 9 times this year.

2. Prices Are Low

According to data collected by the Federal Reserve, sales prices on homes have been decreasing since 2017, based on a median price. That decline reached nearly 10 percent by the end of 2019. In 2020, prices haven’t dropped, but they have reached a “softening period.” Those prices are expected to rebound in the coming year.

3. The Stock Market Is Weathering the Storm

2019 was a good year for stock investors, putting them in a solid position to start the year. While 2020 has been chaotic, the stock market is still doing relatively well. This means both that the economy is healthy and that your own investments may be rebounding.

Buying Property at the End of the Year

Just like Halloween candy and airline tickets, you can save money on property by buying at the right time. By being patient and striking at the right time, you can save considerable money on your investment.

1. Thin Competition from Buyers

The one thing all of us probably remember from Economics 101 is the concept of supply and demand. When demand is low, prices are likely to drop. Because of this, October and November are generally a great time for home shopping. This is the time when most buyers stop looking for the year. December is particularly good because most potential buyers will be busy with the holidays.

2. Save on Taxes

Buying a lot or land for sale in Harlingen represents a significant opportunity to save money on your taxes for this year. These savings come in a few key forms:

  • Deductions —  If you buy a home prior to Dec. 31, you can deduct some of your mortgage loan interest, closing fees, and property taxes. Taken together, these deductions add up fast. This is especially true when your mortgage is still relatively new and your payments are primarily covering the interest.
  • Tax Credits — Investment in things like energy-efficient homes can sometimes qualify you for specific tax credits.

3. Sellers Want to Save on Taxes Too

Buyers aren’t the only ones looking to save money on their taxes; sellers want to get in on those potential savings, as well. This is partly due to the fact that many sellers might be waiting to close a sale before purchasing their own home. This need to close in time to negotiate another purchase could lead sellers to be more flexible with the deals they offer you.

4. Save on Contractors

Winter can be an excellent time to do home renovations, especially in Texas. Winter tends to reach a slow down period during which many contractors may offer lower rates or simply be more available. This means you may have an easier time hiring plumbers, roofers, electricians, inspectors, and even moving companies.

The General Benefits of Buying Property

Thankfully, 2020 won’t last forever. Even once the year is over, buying and investing in real estate will still represent a great way to build your financial portfolio and future. There are countless benefits to buying and owning your own home, some of which include:

1. Earning a Consistent Income

Those interested in securing a source of stable passive income should consider purchasing property. Once an investor has a mortgage, the property can be rented out to create a consistent flow of income. This sort of stability is the foundation of an individual’s long-term financial health.

2. Owning Your Own Home

The rental-income opportunities of buying land lead to another benefit of purchasing a home: you won’t need to pay rent anymore. Sure, when you buy a home you will probably have some sort of mortgage, but the payments you make on that mortgage will go towards a home that you own rather than a temporary living space. This also means that you will have the freedom to make any changes to the home that you may want.

3. Building Your Equity

When you initially begin making payments on a mortgage, the majority of that money goes towards paying off the interest on the loan. However, once you begin paying off the principle of the loan, the actual borrowed amount, the equity in your home will begin to grow. After consistent payments, you can borrow against that equity for things like additional properties or college tuition.

 

Take advantage of the great opportunities available to homebuyers in 2020 with SRC Land.

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Five Perks of Buying Land in Texas

Besides the rolling hills in Central Texas, vast fields of green in East Texas, and majestic mountains in West Texas, there are five other perks of purchasing land in Texas.

If you’re searching for land for sale in Harlingen or another Cameron County town, SRC Land can be your helping hand with their experience in decades of real estate and land development.

1. Property Tax Exemptions

When you purchase land in Texas, you may be eligible to qualify for a wildlife,  agricultural, and/or timber exemption. These exemptions can minimize your yearly property taxes significantly. The exemptions are given for land that’s utilized for agriculture, including for pasture and grazing land, timberland, and wildlife preservation. 

2. You Can Write Off Exemptions

Another financial advantage when it comes to buying land in Texas is that you may file a Schedule F in your federal income taxes. This applies to people who use their land specifically for farming.

What’s great about Schedule F is that it enables you to write off expenses assigned via farming, such as interest on a loan taken out to buy your land. On top of that, if you were to build on your property, you might be able to claim the interest on the construction loan in your federal income taxes.

3. You Can Invest and Profit Off of Your Land 

If your intent of buying land in Texas is to start your own business, you will discover that there are a plethora of businesses you can get into that you can’t in other states. You can consider opening an inn or bed and breakfast if your desire is to provide unmatched hospitality services, or you can go for a more rugged approach by opening up a hunting lodge and/or camping grounds. Whatever profitable venture you wish to achieve with the land you purchase is only limited by your imagination.

4. Financing in Your Favor

The majority of people aren’t in a position to raise the necessary funds to purchase land with only one payment. People that look to buy raw land also encounter an obstacle due to the fact that banks and other conventional lenders do not comprehend how this market works. One reason is that they may not have ways to accurately figure out the value of land as it is.

If you’re looking to buy land in Texas, you may borrow from lenders who finance the purchase and development of rural land in Texas. Certain financing companies are landowners and farmers who understand the necessities and difficulties that come with looking to buy land and engaging in agribusiness.

5. Extremely Affordable Rates

Getting the funds to buy land can be a challenge. The good news is buying land in Texas is very affordable. While rates from one area to another differ, generally speaking, purchasing land is a practicable investment that is far more affordable than buying or constructing commercial buildings.

Simple, Affordable, and Seller-Financed Land in Harlingen

If you’re looking to purchase land in Texas, you will not find better deals than those provided by SRC Land. We are a premier land development company, and we take pride in our affordable parcels of land available for sale in Cameron County.

 

If you’re searching for real estate in Cameron County, you can count on SRC Land to find the right place depending on your needs today.

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5 Mistakes You Should Avoid When Building a Home

If you’ve decided to buy a lot in Harlingen to build your dream home on, you’ve probably noticed there are a lot of pitfalls waiting for you. Luckily, there are also lots of resources available for people looking to build there own homes. 

When you’re ready to put down roots, you’ll need the perfect place to put them, and the property experts of SRC Land can help you find the perfect lots for sale in the city of Harlingen.

 

1. Poor Planning

Poor planning is by far the biggest pitfall for those building their own homes. From budgets to the HVAC system, there are all different sorts of factors that need to be planned for, and each represents an opportunity to incur added costs. Failing to properly plan your HVAC system can lead to moisture and mold growth while failing to maintain a budget can lead to shortfalls and delays. 

 

2. Sub-Par Spacial Design

Spacial awareness is key to creating a functional home design. Unless you are planning to build a massive home, each square foot matters. You’ll need to make sure you have enough storage to account for your family’s lifestyles, and the plan also depends on how long your family plans to stay in the home. Thinking ahead is indispensable considering the size of the investment building a home represents. 

 

3. Lacking Lighting

Technically, lighting could probably also be included under “planning”, but it’s such a common mistake that it deserves its own section. You need to make sure you have plenty of outlets and plenty of light fixtures. Natural light from skylights and windows should be your number one priority in this area as it is a great way to save money from costly electric bills, but we shouldn’t forget about standard light fixtures’ usefulness as well.

 

4. Under-Utilized Rooms

When designing your home, it can be tempting to start adding playrooms, game rooms, or multipurpose rooms; however, this can lead to rooms that don’t actually get used. Spaces like home gyms often end up serving as storage, showing once more the importance of taking your family’s lifestyles into account. One way to avoid this pitfall is to plan rooms that can be transitioned from one need to the next. A sewing room can double as an office, which can double as a guest room, and so on!

 

5. Know Your Needs

Building a home is an exciting prospect, and just about everyone you know will probably have some bit of advice or insight to share. This is great, and these tips can be useful, but you and your loved ones know your needs best. Construction professionals are an especially useful resource, but they can’t determine what your family does and doesn’t need. Your needs are the single largest factor in the decision-making process behind designing a house, and you know your needs better than anyone else.

 

SRC Land: Idyllic Lots for Sale in Harlingen, Texas

Building your own home is one of the greatest joys and experiences in life. It truly is an adventure, but as with any sort of adventure, there may be dangers along the way. Hopefully, this overview will help you avoid some of the common mistakes made by those building a home— or even a business— for the first time.

Before you can build your dream home or business, however, you have to find the perfect lot to build on, and that’s where SRC Land comes in. We have a collection of lots for sale, and we’re confident we can find the ideal spot for you and your family.

Looking for the perfect place to put down your roots? Contact the property experts of SRC Land now.

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How to Secure Your Down Payment for Land

Deciding to invest in commercial properties in Harlingen, Texas is an excellent choice and one that the staff at SRC Land supports entirely. Land ownership in Texas is an increasingly profitable investment, and thankfully, there are basically unlimited ways to profit from purchasing commercial properties in Texas.

Residential properties, on the other hand, also make a great foundation for your American dream in the state. No matter what your reasons are to consider beginning your land ownership process, the expert team at SRC Land can help.

The first step in purchasing more property is ensuring you have enough money to make an initial down payment. Typically, this is just a percentage of the entire cost and will be used to help you finance the payment in full over time, so it is important to make sure you’re in a place that’s financially sound for acquiring more property. 

1. Reference Your Financial Portfolio and Savings

While you may be surprised by how much you already have saved, it’s important that you check all the assets you have including certificates of deposit (CD), money markets, saving accounts, and other funds you may have in financial institutions. You may not wish to spend the entirety of your savings on a property purchase, but your available funds and assets should help you determine if taking this big financial step is right for you.

2. Sell Unneeded Valuables and Hold a Garage Sale

Take a look around old storage spaces in your house, like the garage, attic, or crawlspace. You’ll want to find big-ticket items that you can sell for a profit, anything from an extra vehicle not in use anymore to spare pieces of jewelry laying around.

While it may be hard to part with some of these items, selling them can help you reach your financial goals to purchase property. Advertise for a garage sale in your community, and set a date to try and get sell some of the items you find and are comfortable selling. 

3. Join Online Selling Platforms

If you want to take a more virtual approach to earn some extra money, there are websites like Letgo and Poshmark where you can open an account on to sell products laying around your house that you aren’t using as regularly. In addition to clearing up space in your home, you can work your way to getting even closer to having sufficient funds to purchase a new property. 

4. Team Up With a Family Member to Save

If you have a person in your life who you trust and you would like to share your new property with, work out the details of the payments and ownership before moving forward with anything else. This can be an excellent, if often overlooked, way to acquire new property. This method can help you and your loved one expand investment options as well as your assets. 

5. Take the Owner Financing Route

It is common for property buyers to work with sellers on paying off the overall purchase of the land. This is especially helpful if for some reason you can’t get a loan to help with the purchase. Owner financing is a way for those without credit or with poor credit purchase land by allowing them to seek financing directly from the property owner.

This process bypasses the usual red-tape associated with traditional lending and allows lenders and borrowers to negotiate terms more directly. While it may not be a possibility with every lot distributor, SRC Land can help you purchase the lot of your dreams through a seller financed mortgage.

SRC Land: Making Land Ownership a Reality in the City of Harlingen

Our team at SRC Land is committed to helping you weigh out your different options when it comes to moving forward with this new purchase. Follow these steps, take stock of your assets, and let us know how we can help you pursue your dream of owning new residential or commercial property in Texas.

Looking to purchase land in Harlingen? The road to land ownership is one call away.

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