Does The Military Buy Your House

Does The Military Buy Your House

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How Do I Rent My House To A Military Family

should you buy a house at every duty station: Military Millionaire speaks out!

In order to be part of the military owners for rent, you can list your home directly on rent military by owner. To make your military by owner rent as attractive as possible to potential AAA tenants, follow these guidelines:

  • Ensure its a kid-friendly space. Lots of military homes sale have young kids moving with them. Some landlords will invest in a fence, swing set, or even a play area in the home.
  • Consider leaving the home furnished. If a family is searching for a short-term rental, they are unlikely to want to spend money on mattresses, wardrobes, or a kitchen table.
  • Be flexible with your military by owner rental. Accepting that military renters relocate more frequently than normal tenants is part of renting to them. Although every circumstance is different, military families may relocate every few months or stay in one area for a few years or more.
  • How Marketable Is The Property

    Even if the cumulative cost of buying is less than that of renting, you need to consider the upfront cost, investment of time and effort, and likely financial payoff associated with selling the property.

    Generally, sellers pay 6% of the total selling price in commission to the buyers and sellers agents. That said, its easier these days to find agents willing to discount their commissions or to sell without an agent with minimal out-of-pocket expense.

    Also, even in sellers markets, where buyers snap up houses within days or weeks rather than months, the process of preparing, listing, and marketing a home takes months. For military families preparing for a cross-country or international move, those same months are often hectic, and even projects as important as selling a house can take a back seat to more immediate concerns. And theres no guarantee the home will sell by your move-out date. A sellers market is no panacea, as property-specific issues unusual layout, maintenance issues, or home improvements that decrease resale value keep buyers at bay everywhere.

    Military Housing For Singles

    If you are single, you can expect to spend the next few years of your military service residing on-base in the dormitory, or barracks. Policies concerning single military members living off-base at government expense vary from service to service, and even from base to base, depending on the occupancy rate of the barracks or dormitories on the particular base.

    Army policy allows single members in the paygrade of E-6 and above to live off base at government expense. However, at some bases, E-5s are allowed to move off base at government expense, depending on the barracks occupancy rates of that base.

    The Air Force policy generally allows single E-4s, with more than three years of service, and above to reside off-base at government expense.

    The Navy policy allows single sailors in the paygrades of E-5 and above, and E-4s with more than four years of service to reside off base and receive a housing allowance.

    The Marines allow single E-6s and above to reside off base at government expense. On some bases, depending on the barracks occupancy rate, single E-5s, and even some E-4s are authorized to reside off base.

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    Home Buying Benefits For Veterans

    There are a few other VA-backed programs and benefits that veterans can use while buying a home. These include:

    • Interest Rate Reduction Refinance Loans: Those who are currently paying a VA loan may be able to reduce their mortgage payments by refinancing their loan using an Interest Rate Reduction Refinance Loan .
    • Native American Direct Loans : Veterans who are, or are married to, a Native American can apply for a Native American Direct Loan to buy or build a home on federal land.
    • Adapted Housing Grants: Adapted Housing Grants can help disabled veterans who own or will own a home make necessary improvements or changes to the home to improve accessibility.
    • Foreclosure Avoidance Assistance: The VA has systems in place to help veterans or service members avoid foreclosure. In the event your mortgage becomes delinquent, contact the VA to discuss your options.
    • Military Housing Assistance Fund: A nonprofit that aims to help military members and veterans pay the closing costs for their homes.

    Additionally, states may have individual benefits, grants, tax breaks or financial assistance available for veterans. Contact your local state veterans agency to see what options are available for you during the home buying process.

    Renting Vs Buying On Active Duty

    Using Your VA Loan as an Investment

    With all your military housing options in mind, it is imperative to look at the pros and cons of renting and buying while on active duty.

    Again, videos and blogs of servicemen and women getting rich from PSC real estate fill the internet. But others will warn you of purchasing during your service and recommend safer options without the promise of cash.

    We recommend reviewing the benefits and consequences of buying and renting during your military service for yourself.

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    How Big Is Your Household

    As you can imagine, your calculus is heavily dependent on your family situation. If youre a single person with simple tastes, renting is far more likely to be a better deal financially, as monthly rent on a basic studio apartment typically costs less than the monthly cost of owning a starter home. If you have a spouse and multiple children, you need a two-bedroom apartment to feel comfortable. That could be pricier than a modest owner-occupied home, especially with a minimal or nonexistent down payment.

    List Your Military For Sale For Free

    You dont have to give a real estate agent a large chunk of change in commission to get your military by owner FL house listed on the MLS. There are free MLS listing websites where you may add as many photographs as you like, update the description, and promote your property to over 750 different websites.

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    Where Members Of Armed Forces Get An Additional Benefit

    Heres the good part!

    You can choose to have the 5-year test period for ownershipand use suspended during any period you or your spouse serve on qualified official extended duty as amember of the Armed Forces. The maximumtime of this suspension is 10 years.

    The wording above is a little confusing, I dont really likethe way the IRS explains it, but Ill reword it into something simpler.

    Essentially, instead of needing to meet a requirement of living in the property 2 of the last 5 years, military members can meet a requirement of living in the property 2 of the last 15 years. The 5-year rule can be extended by 10 additional years.

    Living In Military Family Housing Or Living Off

    Military Veterans buy the home of your Dreams

    Members who have dependents usually have the option of living on-base in the military family housing for free, or off-base and receive a monthly housing allowance. Members who are assigned to locations where dependents are not allowed to travel at government expense can live in the barracks for free, and still continue to receive the housing allowance , in order to provide a household for their family members.

    At some bases, members may not have a choice. When I was stationed at Edwards Air Force Base, in California, all First Sergeants and many commanders were required by local regulation to live on-base. It is because the Wing Commander wanted his senior leadership readily available at all times. The closest livable off-base town is Lancaster, which is about 45 miles away from the main base.

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    Will The Military Buy My House

    Military personnel often must pack up and move when transferred or reassigned, and numerous programs exist within the military to help them deal with their current home. This comes via programs set up to help rent or sell your home, mortgage help, assistance to prevent foreclosure and counseling. Some of these programs also assist by guaranteeing the sale of your house or making up for a loss from selling your home due to a declining market in the area. Programs are for eligible civilian Department of Defense employees and uniformed service members.

    Home Purchase Consideration : Buying A House Just To Avoid Moving Twice Might Short

    Finally, weve all heard the argument against moving twice. If you buy a house, you dont have to worry about moving out of the rental home.

    Thats true. However, in most cases, the moving cost is either partially completely covered. Even then, the cost of moving shouldnt deter you from considering renting a home before settling down.

    In a lot of cases, its the emotional cost of moving that convinces people to buy a home without considering all the facts. Weve all had to put up with movingthats what we do in the military. Now that were settling down, wed like to think that we deserve to not move, right?

    Ill tell youthe emotional cost of that extra move pales in comparison to the gut-wrenching despair that Ive seen in clients when theyve made a 5-figure or 6-figure mistake. The kind of mistake that you can make when you buy a house with the best intentions and things go sideways.

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    Military By Owner Reviews

    MilitarybyOwner has an app thats available with iOS with over 455 reviews. While they sit at a 4.4 out of 5, the positive reviews seem to be mostly from buyers, whereas there are plenty of negative reviews from sellers or landlords.

    Some of the negatives from sellers have stated that their home was listed for over 2 months without a single call or email. Other complaints refer to the user-friendly aspect of this app, stating it hasnt been updated since prehistoric technology times. In fact, one user said its annoying to the point Id rather not use it.

    What The Recruiter Never Told You About Military Housing

    What You Can (and Cant) Do With a VA Loan

    Due to the nature of their job and the less than average income, service members receive housing allowances or have access to military housing facilities. Housing facilities include barracks for single or unaccompanied soldiers and on-base or near-base housing or apartment units for members with family. These accommodations are low-costin some instances free. Eligibility depends on your marital status, dependents, rank, and the availability of empty units at your duty station.

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    Choosing Real Estate Over Other Investing Strategies

    However, of all the investments out there, I firmly believe the best is real estate. I believe no other investment on earth offers the same potential for building lasting wealth than real estate investing.

    For starters, real estate investing offers:

    • The ability to use leverage to maximize your results
    • Historical stability and growth
    • Various ways to generate wealth
    • The ability for you to have a direct impact on the results of your investment

    However, real estate is not the same as most other investments either. Real estate requires a certain set of skills and commitment to achieve the incredible results you are looking for. Investing in real estate for great returns takes planning, patience, and knowledge. It takes work.

    I believe the end result is worth the effort because of the potential of greater profits. However, the fundamental question exists: Are consistent 12 percent returns possible?

    Lucky for you, in the middle of writing this article, I decided to spin off a completely rather than making this post longer than it should be. So to see the answer to this question, and a detailed walk through of exactly how 12 percent can be obtained.

    So one final question remains: Is real estate a great investment for those in the military?

    I believe yes.

    Understand Special Tax Rules For Home Sale Profits

    If you eventually sell your home for a profit after renting it out, there are special tax rules that can minimize the bite. To claim tax-free profit , civilian homeowners must live in a house for two of the five years leading up to the sale. Military families, however, must live in the house for just two of the preceding 10 years to qualify for this tax break. See IRS Publication 3, Armed Forces Tax Guide for details.

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    Work With Our Local Specialists

    They are an asset to have on your team. They know your community, current market trends and how to work within them. They will be a supportive partner who is in your corner to coach you through the process. Our specialists will look for strategic ways to streamline the process and maximize your savings. At this stage, some important milestones may include loan pre-approval, a market analysis, identifying your ideal home, conducting a home search, determining and/or negotiating an offer, and completing an official home inspection. This is what we do for our heroes and we do it well.

    Reasons Why You Might Want To Buy A House Even Though You Are Military

    Using your VA Home Loan Benefit: Where to Start

    1. It can be less expensive: Again, it depends on the market demographics of the area. In the area my family is probably moving to, it is much less expensive to buy a house than to rent. For example, a single listing on Militarybyowner.com shows the same house for rent for $1,850 per month, or for sale for $275,000. A mortgage payment on a 30-year loan for $275,000 would cost roughly $1350 per month, a savings of $500 per month. You can either pocket some serious savings, or get a much bigger house.

    2. You have lots of kids or big dogs and it is near impossible to find rental housing or live on base: This one is pretty self-explanatory.

    3. You really, really want to be absolutely positive that you won’t have to move mid-tour: Even with a long lease, stuff can happen and you can have to move unexpectedly. Owning decreases the possibility to as close to zero as possible.

    4. You want to paint or plant trees or smoke up a storm: Renting means restrictions on what you can and can not do to and in the house. If you buy, you can pretty much do anything that is legal and isn’t against the covenants of your neighborhood.

    5. This is your forever home: Whether you are leaving the service or just planning ahead, it is nice to get started paying off your forever home while you are still receiving Basic Allowance for Housing .

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    Leave Your House Behind But In Your Agents Care

    Its not uncommon for a military seller to have the confidence in their agent to continue the sale in their absence, from a distance. Youve likely bonded with your agent over the difficult sale and would like to keep the continuity until closing day.

    This situation requires constant communication and clear expectations as to any additional responsibilities your agent may pick up in your absence. For example, monitoring the house regularly and noting upkeep and safety needs.

    Technology has taken real estate transactions to a new level and in-person transactions are not necessarily a requirement. Your agent should be well versed in several virtual platforms that foster a long distance sale. E-signatures and online notaries, when available, are just the beginning of the list of useful tech choices.

    You Can Do This And Help Is Out There

    Avoiding a stressful PCS is a top priority for military sellers, especially first-timers. You have real-world responsibilities to your family and military colleagues that simply cannot be put on hold while sorting the logistics of a PCS move.

    Thankfully, there are real estate experts who understand the ins and outs of your unique situation, and you have lots of benefits to claim as a result of you or your spouses service to this country.

    Take advantage of whatever offerings youre granted, ask for help when you need it, and youll be well on your way to selling a home with confidence.

    That way, you can focus on everything this next chapter of life in a new location has to offer.

    Who knows? Maybe itll be an adventure.

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    Qualified Official Extended Duty

    Obviously, its important to make sure you or your spouse qualify as someone who is on qualified official extended duty which is defined as:

    • At a duty station at least 50 miles from yourmain home, or
    • While you live in government quarters undergovernment orders

    You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period.

    Other Types Of Help If Youre Homeless

    Why does the US military buy so much Viagra?

    Visit Benefits.gov to find out if youre eligible and how to apply for other types of help. This may include financial assistance, transportation, food, counseling, and more.

    If you dont have medical insurance, you can use HRSA health centers. They give checkups, treatment when youre sick, pregnancy care, and immunizations for your children.

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    Crucial Tips For Military Home Sellers

    As you get ready to sell, follow some of the advice from real estate agent Chris Norton, a decorated veteran, and top-producer in Trenton, New Jersey. He sells homes 49% quicker than the average Trenton, New Jersey, agent, and his client list often includes active duty members and veterans.

    Because he is a retired Army Reservist, Norton has personal experience with a vast variety of unknowns that come with military life and the challenges military sellers encounter. Hes been known to go the extra mile for his military clients, including a recent incident when he contacted local police about the need for a property checkup because his client is located several hours away.

    He has offered the following advice to military sellers:

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