To Rent Or To Buy?
When will you ready to buy a home? What are the benefits and limitations? Considerations generally fall into two categories.
Renting:
- Little or no maintenance costs;
- No down payment. Do need security deposit and possibly first and last month's rent;
- Can't lose money from falling home values;
- Moving expenses in and out;
- No tax breaks;
- No property tax;
- Rent can rise with inflation;
- Typically you get less space for the money.
Owning:
- Ongoing repair and maintenance responsibility;
- Down payment required, but for some, can be little or no money;
- Can gain value and be available as a loan resource (equity loan);
- Can also be a major resource for money during retirement;
- Can lose value;
- Moving expenses in and out;
- On-time payments build good credit record. Late payments significantly harm credit record;
- Significant tax breaks can make payments as low as renting;
- Property taxes, insurance, etc.
Renting:
- Easy to move out;
- Not many responsibilities;
- Time to judge a neighborhood before making a permanent commitment to live there;
- Less stressful than choosing a home;
- May be restriction on noise, use, design, pets, children, est.
Owning:
- Moving typically requires more thought and time;
- Continuous responsibilities;
- Requires commitment to choice of home and neighborhood;
- Usually more control over home design and improvements;
- No restrictions on who occupies the home or how you use it (apart from any local ordinances);
- Pride of ownership.
Need some help, contact online at:
Sale real estate listings - Offers Seattle Washington for sale real estate listings and MLS, as well as information on first time home buyer grants programs.
Home-Elevator - Residential Elevators - Nationwide Lifts provides consultation for residential elevators, dumbwaiters, and chairlifts. Free Home Elevator Catalog inside
According to the National Association of Relaters, homes have tended to appreciate an average of 5%a year. Consider the impact than can have on your assets.
1. You buy a $200,000 home and put down $20,000 (10%).
2. The home appreciates 5% a year for three years to $231,525.
3. Aside from other costs, you've earned a 157.6% return on your investment in three years. Why so much? Your home cost $200,000, but you only invested $20,000. The $31,525 increase in value on that $20,000 works out be a 157.6% return.
On the other hand, that huge return may not give you as much profit as you think. there may be a considerable amount of other costs that would reduce your return. For example, you will have paid some closing costs. You may also pay a brokerage commission to sell the home and take your profit. In the end, most experts agree that people should buy a home first to be happy living in it, and second, as an investment opportunity.
|
|
 |
