1. From the Houston Chronicle August 22, 2010 Print Edition
There are key reasons to consider buying, remodeling
By JOHN R. MADSEN, CPA
Parmet, Chapman & Madsen PC
Are you thinking about buying a new home or remodeling an
existing one? If you are able to make a minimal initial
investment, and you have a reasonable credit score, now is an
ideal time. The key reasons that now could be the best
opportunity can be summed up in these basic points:
 It is a buyer’s market. Prices are depressed because
demand for new homes is down. Builders and/or
homeowners are willing to negotiate price. Remember the
adage, “Buy low and sell high?” Today’s market is at a
low. If you are holding onto your home until it is a seller’s
market, now is the time to invest in your home and make
any desired improvements. Remodeling can increase the
value of your home when you are ready to sell.
 Mortgage and second mortgage loan rates are at an all-
time low. Thirty-year loans range from 4 to 5 percent.
Some offer no closing costs. Some of us remember the
days when mortgage rates were well over 10 percent. The
payment difference on a $150,000 fixed-rate 30-year loan
between a 4.5 percent and a 7 percent rate is $238 per
month. Rates cannot get much better, and there are some
concerns that inflation and higher borrowing rates are
coming within a few years. It also seems to be easier to
get financing for remodeling projects because sitting tight
and increasing the value of what you have can be more
appealing to lenders. The market will turn around, and your
property will more than likely be worth a higher amount at
the point of sale.

2.  A tax incentive is another reason now is a good time to
invest in your home. If you work for a company (do not
own a business), the best way to reduce your federal
income tax is to itemize your return with mortgage loan
interest and your home’s property taxes. This also
applies to home remodeling projects.
A home purchase or home remodel typically will appreciate in
value and build your personal net worth, not to mention that
you will have a great place to live. Remember, selecting a
qualified remodeler is as important as selecting a qualified
Realtor. Lowest price does not constitute qualified. It is
essential to find a skilled, experienced and honest remodeler.
The Greater Houston Builders Association or National
Association of the Remodeling Industry is a good place to start
when searching for this type of remodeler.
This article was provided by a member of the Greater Houston Builders Association’s
Remodelors Council. For more information contact the Greater Houston Builders
Association, c/o Remodelors Council, 9511 W. Sam Houston Parkway N., Houston, TX
77064; www.ghba.org/remodelors_council.asp; or 281-970-8970. The GHBA
Remodelors Council meets every second Tuesday of the month at 11:30 am at the HESS
Club.