equity, sometimes renting makes better financial sense. For example, you can rent out your previous residence or any investment properties you may own. The positive cash flow from owning rentals may even help offset your personal housing expenses. 3. IS IT POSSIBLE TO DISPUTE YOUR PROPERTY TAXES? If you live in an area where housing prices have softened, it may make sense to dispute your annual property taxes. You have a short window of time to dispute them after you get your assessment, so be aware of the deadlines. Make an appointment with the taxing authority during the time they consider revising property taxes and bring comparable recent sales information for properties like yours to support your effort to reduce your taxes. 4. CAN YOU SHOP YOUR PROPERTY INSURANCE? Most places in the country have seen property insurance increase recently due to a variety of factors. Still, rates differ among carriers, so it pays to shop your policies around annually, even in places in the country that have lost insurance carriers due to large losses in the area. If you escrow your insurance payment, you don’t always pay the bill directly, but you usually get a policy statement at renewal, so call around that time.
They always say time changes things, but you actually have to change them yourself.” —Andy Warhol
your property to someone else, you are providing safe and affordable housing to them while helping to reduce your own housing-related expenses.
maintain. Although downsizing may not be an option presently, it may be an option to consider for the future. Certainly, housing affordability is an issue we all can relate to. There are, however, things under our control for reducing our housing-related expenses. Choose one of the items discussed that speaks to you and begin being your own housing affordability advocate today.
6. CAN YOU MAKE YOUR PROPERTY MORE ENERGY EFFICIENT?
Energy costs have increased along with everything else, so if you can make your home more energy efficient or use less energy, you will reduce your housing costs. Also, check into tax incentives or incentives that may be available through your local utility company to improve the energy efficiency of your property. It is surprising how much you can save when you reduce your utility costs.
JEFF ROTH
7. DOES IT MAKE SENSE TO DOWNSIZE?
5. CAN YOU RENT PART OF YOUR PROPERTY?
With so many people retiring and interest rates starting to drop, it may make sense to move to a smaller property just because you don’t need as much space as you once did. Moving to a smaller property saves you money on the payment, lowers your utility costs, and saves you time because you have less property to
There are many ways to reduce your personal housing expenses by renting a room in your house as a short-term or long-term rental. Can you turn your basement into an apartment, build an accessory dwelling unit on your property, or rent your garage or barn for storage? By renting out a part of
Je Roth is the founder of Arbor Advising in Ann Arbor, Michigan. Arbor Advising is a real estate consultancy passionate about helping clients invest, buy and sell in Michigan. You can contact Je at je @ arboradvising.com, visit www.arboradvising. com, or subscribe to the weekly newsletter at www.arboradvising.com/subscribe.
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