Home Buyer Articles
Should You Rent or Buy?
Review the general advantages and disadvantages of home ownership below.
Millions of people enjoy the rewards of home ownership.
1. A sound investment. When you carefully choose a home you can afford, the payoff can be great. Each month when you make your mortgage payment, you're building equity in a place of your own. The more mortgage payments you make, the more equity you'll have. And unlike most things you buy, a home can actually appreciate or increase in value as time passes, building more equity.
2. Tax advantages. The mortgage interest and real estate taxes you pay are tax deductible which can reduce your tax bill. Check with a tax professional or your employer to change your deduction which could net you more in your paycheck each week.
3. A first step. As you build up equity in your current home, it's usually easier to afford another home in the future. In 30 years it’s possible your home could be paid off and your equity may help to support your retirement.
4. Satisfaction and security. As a home owner, you can decorate and improve your home any way you like. The pride of home ownership can boost your self esteem and create ties to your community and surroundings. Being a proud homeowner can support an array of positive emotions giving you and your family a sense of satisfaction and security.
5. Now vs. later. If you buy now you begin to build equity immediately and your nest egg begins today.
Disadvantages of Home Ownership —It's easy to get caught up in the excitement of buying a home, and to forget that home ownership may have drawbacks.
1. Higher costs. Compared to renting, you can probably expect to pay more per month for your mortgage, plus the added costs of home repairs and maintenance.
2. No guarantees. There's no guarantee that your home will increase in value, particularly during the first few years.
3. Illiquid asset. In the event you need to get to your equity in an emergency it may take time to sell your house and receive you proceeds. In today’s real estate market it takes over 100 days to sell your home.
4. Tougher moves. After you've bought a home, you may not have as much flexibility in choosing a new location or job.
- Author: Mike Smyth, Gibraltar Director of Marketing
First Time Home Buyers - Buy Low Sell High
“Buy Low Sell High” — The famous words of many successful Wall Street investors. While many homebuyers sit on the sidelines watching in awe as their home values continue to erode. A select few first time homebuyers are acting on one of history’s greatest buying opportunities; the ability to buy their first home at great prices with significant support from their state and federal government. “The days of the McMansion’s are over” states Peter Iselo founder of Gibraltar Custom Homes. “Our business is now mostly first time buyers” “There are so many programs available today for them to take advantage of, that it makes sense to buy now”. There are Tax credits of up to $7,500.00; FHA, VA and the USDA all have attractive financing programs. If a homebuyer plans on being in their home for many years why wait until it gets competitive? Timing the market almost never works and builders are slashing profits now.
A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are. Gibraltar Custom Homes Can help you build that dream. “Our clients are like family” States Iselo. “We sit and navigate through all the challenges and stresses of buying a new home together.” Since builders are able to buy building lots at very reasonable prices today they can build a new home and deliver that home at a very reasonable price. For a private one on one consultation call Gibraltar at 570-897-2222.
- Author: Mike Smyth, Gibraltar Director of Marketing
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There are numerous incentives offered for geothermal heating and cooling systems across the United States.
Tax Incentives See Individual State GEO $$ Incentives
The United States Energy Bill Offers Incentives for Geoexchange
On Monday, August 8, President Bush signed the bipartisan Energy Policy Act of 2005 at a signing ceremony held at Sandia National Laboratories in Albuquerque. This new multi billion-dollar National Energy Plan is the first signed into law in more than a decade and comes to us at a time when new energy-related policy is more critical than ever. Among the many features of this 1,724-page law, Congress has provided new incentives for geoexchange.
Sec. 1333: Credit for certain non-business energy property
One of the highlights of the new bill addresses homeowners, who are granted up to $300 in tax credits for the cost of new Geoexchange systems. To be eligible, the standards that must be met are 14.1 EER & 3.3 COP for closed loop, 16.2 EER and 3.6 COP for open loop and 15 EER and 3.5 COP for DX. However, the system must include a desuperheater or integrated water heating to meet the credit's criteria.
Sec. 1332: Credit for construction of new energy efficient homes
Provisions also offer credit for construction of new energy efficient homes, up to $2,000, for homes that cut energy use for heating and cooling only (no hot water) by 50 percent compared to the national model code - the 2004 International Energy Conservation Code Supplement (assuming an SEER-13 air conditioner). Producers of manufactured homes can also qualify for a tax credit of $1,000 for homes that save 30 percent.
Sec. 1331: Energy efficient commercial buildings deduction
Another highlight of the new Energy Policy Act addresses commercial facilities by awarding energy efficient commercial buildings deductions of up to $1.80 per square foot for buildings that achieve a 50% reduction in annual energy cost to the user, with partial credits offered at $0.60/sf. This reduction amount is compared to a base building defined by the industry standard ASHRAE/IESNA 90.1-2001. The amount of the deduction is the lesser of: 1) $1.80/sf or 2) the costs incurred or paid for the energy-efficient property. In addition, the property must 1) be otherwise depreciable property, 2) located in the United States, 3) paid to be constructed by the taxpayer seeking the deduction.
Sec. 206: Renewable Energy Security
It is also important to note that the section covering renewable energy security offers a 25 percent rebate, up to $3,000, for renewable energy systems. Although this section’s language now includes geothermal heat pumps as an eligible system, this rebate has not been funded yet and until such appropriations are made, no financial incentives are available through this section. Please keep checking back on this web page for updates, as we will post any news once it comes available.
The Geothermal Heat Pump Consortium works hard to represent our industry, making sure our voices are heard and that we are included in policies that direct the future of our country's energy market. We applaud both Congress and the Bush administration for passing a comprehensive energy plan that encourages conservation and energy efficiency, and that specifically addresses our industry's future when we need it most.
A full copy of the Conference Report for H.R. 6, the Energy Policy Act of 2005, is available for download.
The IRS issued tax credit rules for homeowners info can be found at: http://www.irs.gov/newsroom/article/0,,id=154657,00.html.
The information for builders is located at: http://www.irs.gov/newsroom/article/0,,id=154658,00.html.
For information on any other tax credits, please visit ENERGY STAR
United States Department of Agriculture Assistance Programs
The Farm Security and Rural Investment Act (Farm Bill)
The Farm Security and Rural Investment Act of 2002 (the Farm Bill) established the Renewable Energy Systems and Energy Efficiency Improvements Program under Title IX, Section 9006. This program currently funds grants and loan guarantees to agricultural producers and rural small business for assistance with purchasing renewable energy systems and making energy efficiency improvements, including the installation of geothermal heat pumps.
New for 2006, the program offers both grants and guaranteed loans for eligible projects. In addition, projects with total eligible costs under $200,000 can apply under a Simplified Application Process designed to streamline the application process for small projects.
Some key provisions of the program are: |
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| Applicants may qualify for a grant, a guaranteed loan, or a combination of both. | ||
| Grant request must not exceed 25% of the eligible project costs. Renewable energy grants can range from $2,500 to $500,000. Energy efficiency grants can range from $1,500 to $250,000. | ||
| Projects under $200,000 total project costs qualify for a simplified application process. | ||
| Loan guarantees can be for up to 50% of total eligible project costs. Guarantees can range from $5,000 to $10,000,000 per project. | ||
| Projects can qualify for combined grant and loan guarantee, but the grant portion is still subject to the above limits and combined funding assistance cannot exceed 50% of total eligible project costs. | ||
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Gibraltar Custom Homes - Building Green for our children’s future
Gibraltar and their team has been Building green for over 25 years in the slate belt region. Their practice of increasing the efficiency with which homes use resources - energy, water, and materials - while reducing building impacts on human health and the environment has been a focus of Peter Iselo for many years.
“We believe we all want to lessen the load we put on the earth”, Says Peter. “We want to do our part in reducing global warming”. “We want our families to live in a green home”. Most people want to do what's best for the environment, but often they don't know where to start.
Gibraltar Custom Homes wants to help you lower the environmental impact of your home and your daily life, while reducing your out of pocket expenses. To do that, they seek the best green products, practices, and service providers to help achieve your environmental goals. Gibraltar will also help you understand the environmental benefits and economic trade-offs of your choices. In short, Gibraltar is your One Stop Green Custom Home Builder.
Green building materials typically considered to be “green” include rapidly renewable plant materials like bamboo and straw, lumber from forests certified to be sustainably managed, dimension stone, recycled stone, slate, recycled metal, and other products that are non-toxic, reusable, renewable, and/or recyclable. “Many of our building materials are extracted and manufactured locally, and sent to the building site to minimize the energy required in their transportation” says Jack Thompson, Head of construction.
Gibraltar Custom Homes also seeks to reduce waste of energy, water, and materials. During the construction phase, one goal is to reduce the amount of material they send to landfills. They use high-efficiency windows and recycled blown insulation in walls and ceilings. “greywater” and rainwater can be recycled and used for irrigation or car washing. Window orientation, Solar water or Geo Thermal heating further reduces energy loads. “All our appliances and fixtures are extremely energy efficient resulting in the lowest monthly energy bills among our competition” states Iselo.
Much of the concern boils down to the use of energy. How much energy is embodied in the building materials themselves, in their transportation and assembling? Then once the house is built, how much energy does it consume to keep its inhabitants comfortable? Consumption of energy has a direct influence on environmental quality. Together, we can do our part in contributing to the preservation of mother earth for all future generations to enjoy.
- Author: Mike Smyth, Gibraltar Director of Marketing
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Gibraltar Custom Homes uses Geo Thermal Heat to combat today’s high energy costs
The upcoming winter of 2008 will bring some of the area’s most expensive heating bills ever. Gibraltar custom homes have been installing Geo Thermal Heat since 1987. “More and more customers are educating themselves on energy efficiency” said Peter Iselo, Founder of Gibraltar Custom Homes. “We are installing more geo thermal energy systems than ever before”.
According to the U.S. Environmental Protection Agency (EAP) geothermal systems are, “the most energy-efficient, environmentally clean and cost-effective space conditioning systems today.” A geothermal or “ground-source” heat pump (GHP) is an electrically-powered device that uses the natural heat storage ability of the earth and/or the earth's groundwater to heat and cool your home.
Eastern PA experiences seasonal temperature extremes—from scorching heat in the summer to sub-zero cold in the winter—a few feet below the earth's surface the ground remains at a relatively constant temperature. Depending on latitude, ground temperatures range from 45°F (7°C) to 75°F (21°C). Like a cave, this ground temperature is warmer than the air above it during the winter and cooler than the air in the summer. The GHP takes advantage of this by exchanging heat with the earth through a ground heat exchanger.
As with any heat pump, geothermal and water-source heat pumps are able to heat, cool, and, if so equipped, supply the house with hot water. Some models of geothermal systems are available with two-speed compressors and variable fans for more comfort and energy savings. Relative to air-source heat pumps, they are quieter, last longer, need little maintenance, and do not depend on the temperature of the outside air.
A dual-source heat pump combines an air-source heat pump with a geothermal heat pump. These appliances combine the best of both systems. Dual-source heat pumps have higher efficiency ratings than air-source units, but are not as efficient as geothermal units. The main advantage of dual-source systems is that they cost much less to install than a single geothermal unit, and work almost as well.
Even though the installation price of a geothermal system can be several times that of an air-source system of the same heating and cooling capacity, the additional costs are returned to you in energy savings in 3–10 years. System life is estimated at 25 years for the inside components and 50+ years for the ground loop. There are approximately 50,000 geothermal heat pumps installed in the United States each year and growing. If you have any questions about installing a Geo Thermal system in your home contact Gibraltar Homes at 570-897-2222 or
www.Gibraltarhomes.com.
- Author: Mike Smyth, Gibraltar Director of Marketing
