A Better Cost of Living in the South

Posted on October 9, 2014 by Melanie Kramer Realtor

I’m often asked about cost comparisons between the Savannah, Georgia area and the north east, “Is the cost of living really that much better in the south?”

We touched on the cost of living when we discussed buying a second home in the area…

the cost of living is much lower here. When compared with Newark, New Jersey for example the overall cost of living in the Savannah area is 31% lower*. The cost of housing alone is 58% lower* than Newark. Generally speaking if you’re living on $120,000 in New Jersey you could maintain your lifestyle in Savannah with $82,818.

Breaking Down the Cost of Living in the South

What makes the Richmond Hill / Savannah area so desirable?

Along with the beautiful weather, beaches, and 2nd biggest St. Patrick’s Day festival in the country – we also boast an excellent cost of living.

Forbes lists Savannah’s cost of living to be below the national average and considerably lower than the New England, New York and New Jersey area.

Looking for a home in the Savannah area often means getting more for less.

What does this mean to your pocketbook?

In basic terms, everyday items are a little bit cheaper here. AreaVibes.com notes that both kinds of liquid fuel trend below the national average. The price of gas in the Savannah area averages 1.2% below and the price of coffee averages 3.5% below.

With a longer warmer weather season than our friends in the north east our energy and utility costs run about 5.3% lower than the national average.

Health care and dental costs are also lower. You may also find other self-care costs such as getting your hair styled will save you a few dollars too.

The Richmond Hill / Savannah area can help stretch your retirement dollars too, all while providing the benefits of a top tourism destination – great hotels (for visiting relatives), world class events and a variety of outdoor activities.

Taxes

A tax friendly town can be a crucial deciding factor when planning a relocation or retirement. Georgia does have a state tax on each home you purchase, but what makes it such a great option for retirees is that Social Security benefits are not taxable income and the state also offers exceptions on other types of retirement income.

Check with your accountant for tax information that will relate specifically to your needs.

Property taxes in both Chatham and Bryan Counties are assessed based on 40% of the fair market value of the property. A $240,000 home would have an assessed value of $96,000 for taxing purposes. The final tax bill will be based on the property and any exemptions available. For example, there is a senior citizen discount on property taxes.

Generally speaking, factor in approximately 1% for Bryan County yearly property taxes and 1.5% in Chatham and Effingham Counties for easy round numbers. All three counties use a mileage rate which equates to about these percentages. That means you could buy a $200,000 house in Bryan county and the property taxes are $2,000 per year even if you have no senior citizen discount.

Further, if you buy a home in the suburbs of Bryan County (Richmond Hill, GA), your 1% tax bill INCLUDES your waste bill for weekly curbside service, your yearly fire department dues (no separate bill), and your biweekly curbside recycle service (you do not have to sort). Those “extras” that are included in themselves save you a few hundred dollars each year!

There is no better example than my own: 3.5% home mortgage for 30 years, 1% property taxes on my home, no fire department dues, no waste monthly bill, approximately $45.00 each month for my water useage, no sewage bill, a local electric company (www.coastalem.com) which equates to $9.50 to $11.00 per KWH used. There are no yearly vehicle emission tests in Georgia. There are new vehicle purchase taxes and a yearly $25.00 car tag fee. Not a bad cost of living at all!

A better cost of living equals a great quality of life.

Please call or email me today for more information or questions about your relocation needs!

Melanie Kramer
Keller Williams Realty Coastal Area Partners
912-459-5001 Office
912-658-1390 Cell Direct

*statistics pulled from payscale.com

5 Hidden Moving Costs and How to Lessen the Blow to the Pocketbook

Posted on October 2, 2014 by Melanie Kramer Realtor

Moving is fun, exciting and… can get a little expensive

Here are five hidden moving costs to be aware of that will help keep your moving budget from getting out of control.

Moving Costs When Coming South

Moving to a new state is often considered a long distance move. This means moving costs will probably be calculated based on weight. Those used to moving across town and paying someone by the hour will find a much different pay scale when moving to a new state.

If this is your first long distance move you may be asking yourself how much does my house weigh? According to Move Source a three bedroom home can weigh between 7,500 and 10,000 pounds. Taking in to consideration how much your move will weight and how far you’ll be moving is all the more reason to purge before you pack. With enough notice some centers will come to you and pick up your donations.

Why pay to move things you do not need?!

Be Ready When the Movers Arrive

The day you’re packing the truck is not the day you should be packing the boxes.

Not having everything ready to load can interrupt the flow of the movers and can slow the process. A 3 hour job can easily creep into double time. Or leave you with a half filled truck while the movers head to another job. Start with cleaning out your attic, and work down from there.

The cost of boxes can add up. This is a great opportunity to reuse and recycle. Check with local apartments or neighborhood groups that may have new tenants getting rid of their backing boxes. You could save hundreds.

Spices and Cleaning Supplies

It seems to be a universal exercise to dispose of our spices and cleaning supplies before moving to a new home. This is especially true during a long distance move.

Add a line to your moving budget to replace these items. Restocking the pantry and picking up cleaning supplies are often overlooked moving costs that can really add up.

New state, new plate

For some this is one of the first things they do, for others it sits on the back burner until the last minute often gathering late transfer fees in the process.

A quick search on the web can help you determine the costs of registering your vehicle in a new state and county.

In the state of Georgia, vehicles purchased after March 1st 2013 are charged a one-time title ad valorem tax base on the value of the vehicle. This includes owners buying out a lease on a car they’ve been driving for a few years. For more information you can visit: http://motor.etax.dor.ga.gov/motor/MVDOnline.aspx

One More Deposit

Some utility companies require a deposit up front. And that first month you’ll probably be covering utilities for both locations – although you will most likely receive repayment from your previous location utilities it usually comes months down the road.

Keep in mind utilities are not the only ones requiring money upfront; neighborhood groups, home owners associations and local pool or gym memberships may all require some sort of deposit or payment.

Please call me today for more information or questions about your relocation needs!

Melanie Kramer
Keller Williams Realty Coastal Area Partners
912-459-5001 Office
912-658-1390 Cell Direct

Home Loan Approval Do’s and Don’ts

Posted on September 11, 2014 by Melanie Kramer Realtor

Securing a home loan approval can be a little like having a 20 dollar bill in your pocket. Once that first transaction is complete, it seems much easier to spend the rest of it.

Filling out the loan papers and receiving a pre-approval can get very exciting. Planning for a new house can take us down many inspiring roads. Maybe you start thinking about the new eight piece set dining room furniture you just saw on the showroom floor – no interest for six months! Or since you’ve been pre-approved for a mortgage, now seems like the perfect time to upgrade to that all too intoxicating new car smell.

Afraid not! Now is the perfect time for patience when it comes to navigating the home buying process.

Do’s and Don’ts of a Smooth Home Loan Approval

DO NOT apply for new credit. This includes those no payments, no interest for 6 months promotions and co-signing for anyone.
DO NOT max out your current credit or make any large purchases. Budgeting for your new home is important. Waiting until all the paperwork is finalized before adding to the debt will make for a smooth home buying experience.
DO NOT close any credit accounts or change banking accounts. Accounts with zero balances with access to available credit can help your credit rating.
DO NOT consolidate debt. Looking at our credit reports can get a little scary, especially if you haven’t been keeping up with them. Now is not the time to consolidate debt, doing so is essentially applying for new credit.
DO NOT make any large deposits into your accounts. During the home loan application personal accounts are monitored for general activity and balances. Large deposits can raise red flags. If you receive a monetary gift it is good practice to keep a paper trail on hand.
DO NOT originate any inquires on your credit. This is an activity for your mortgage lender!

The goal is to maintain the credit profile that ensured the pre-approval. If you’re about to engage in activity that will change your credit it is always best to get a second opinion – which brings me to the Do list.

DO meet with a loans officer. They are here to help answer any questions specific to your needs.
DO stay current on your existing accounts. Buying a new home can take up a lot of time and energy. Now is the perfect time to stay vigilant on your current payment schedules and ensure everything remains up to date.
DO keep working at your current job. Change is great. And a lot of people move because of their work. But when that isn’t the case, maintaining your work history will help turn the pre-approval into a closing as stress free as possible.
DO keep your insurance agent in the loop. Open a dialogue with your insurance company early in the home loan approval process and let your agent, insurance carrier and lender know the name, address and telephone number of your local insurance agent and company insuring your new home with homeowners insurance coverage and/or flood insurance. The agent must send a declaration page of insurance and bill to the closing attorney prior to closing.
DO maintain a file of original paperwork. Having pay stubs, W-2 forms, past tax returns, bank statements, insurance documents, VA certificate, etc on hand is a great way to quickly fix up an issue that may arise. Consider using a folder or a small binder to keep everything organized.
DO provide your lender with any documents required as conditions of closing i.e. a closing statement from the sale of your prior home, your last paycheck, an original gift letter, copies of tax returns
DO let the closing attorney and your agent know if a Power of Attorney is needed. An executed Power of Attorney for anyone on the loan who is NOT able to attend the closing will be needed. The Power of Attorney must be faxed to the closing attorney prior to closing to ensure the Power of Attorney is approved by the lender.

Please feel free to contact me questions and if you consider moving to the area, upgrading to a larger home in the area, purchasing land or investing in a business here, I would greatly value the opportunity to meet with you.

Warmest regards,
Melanie Kramer, Realtor