Should I pay the entire year's rent at once, or put the money in a ladder CD, or money market account so it can grow a little first?
2006-06-18 19:52:33 · 10 answers · asked by Comsig12 1 in Business & Finance ➔ Personal Finance
I have the money to pay a whole year's rent. But I don't want to buy a house yet cause I'm not ready to take on that size of a liability. Cause I would have to pay property tax, repair, utility bills, and i'd be paying alot more, then i would save in tax anyway.
2006-06-18 20:06:22 · update #1
I'm not afraid to own any house. I was actually thinking of buying a 4plex so that i can rent out the other 3 units and have them pay for everything, mortgage and utilities and stuff like that. What i would really like to do is get a private investor loan, so i can buy a $2,000,000 Apartment complex.
I know as a first time home buyer I can get up to a 4plex using traditional means.
2006-06-19 12:23:36 · update #2
Unless you're getting some kind of discount for paying up front, you should definitely not pay it all at once.
First, if nothing else, you can earn interest on that money. Throw it into an account like at ingdirect.com, and you can earn 4.25% interest.
Also, what if an emergency comes up and you need that money? I doubt your landlord will suddenly give it back to you.
The general idea with money is unless it's earning interest for you, don't stash it away where you can't get at it. That's why you shouldn't overpay your taxes. Then the government gets to earn interest on your money.
Hope that helps.
2006-06-18 19:58:13 · answer #1 · answered by Scott 4 · 0⤊ 0⤋
Don't pay it all at once and get over your fear of owning a home. Every dollar you pay to rent is a dollar that you'll never see again. And you already are paying utilities, property tax, maintenance, etc. except its all wrapped up in your rent payment.
When you own, you're building equity in your future. You will see those dollars again. Don't focus only on the liability side (the loan) of the balance sheet, because you have an asset (the house) offsetting the loan. You can always sell the house and pay off the loan.
The sooner you start owning a home, the sooner you'll start building equity. It'll be a little overwhelming at first, but give it 6 months to year and you'll get over it and in ten years you'll very likely thank me.
2006-06-19 04:04:29 · answer #2 · answered by ZepOne 4 · 0⤊ 1⤋
If you don't get a discount I'd ASK! landlords are often greedy for money NOW and probably would love to strike a deal with you. It's likely that a deal with the landlord will be better than 5% interest you'd get in a year from a bank. Anything more than 10% would be assume and more than you'd ever get in a year guessing on stocks.
why might they want to do it? They get money now, that otherwise they have to wait month after month for and money now is worth far more than money later. Plus it guarantees them that you wont run out on them without paying and they won't need to find a new tenant anytime soon.
Than with the money you saved on rent put it in a high interest saving account like ING or a SURE thing no wish washy stock purchases or things that you can't liquidate fast. e-mail me if you want the 25$ sign up bonus from ING savings bank!!!
2006-06-18 20:41:13 · answer #3 · answered by double v 5 · 0⤊ 0⤋
If you are renting a house...you won't buy it. It's a rental. Are you talking about making monthly mortgage payments? An installment loan? Whats better? Depends on your resources. If you have $100,000 in the bank and want to purchase a $100,000 house out right for cash ....by all means do it. But most people don't have $100,000 in the bank. So for the vast majority of people, purchasing a house on an installment loan is the better option. You can always pay extra on your mortgage each month and pay the house off early.
2016-05-20 01:42:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Never give anyone money before you have to. Invest it and earn the interest for yourself. Even the 3.2% your credit union gives you on your savings account would be better than letting your landlord have it. The real question is, if you have enough money for a full year of rent, why not purchase your own home and get the tax deduction while building equity?
2006-06-18 19:59:07 · answer #5 · answered by david s 4 · 0⤊ 0⤋
Put the money in a CD. There's no point in paying a year's worth of rent. It does not benefit you financially. Besides, what if something happens and you have to or want to move out?
2006-06-18 19:55:37 · answer #6 · answered by Rockstar 6 · 0⤊ 0⤋
put it in a MMA acount so you can earn interest on your money. If you pay your landlord all of it at once, he will earn interst on that money for the rest of the year, while you not paying him at once wouldn't mean that rent goes up each month as a penalty or something of that nature.
2006-06-18 19:57:39 · answer #7 · answered by baparri 2 · 0⤊ 0⤋
Do you have a strong senses that your going to live there, for another year,save the money , invests it,Dont pays or give in / for unforseen circumantaces.you are not creator, to suggest what laid ahead of your destiny ,either with sour grapes or thony roses
2006-06-30 17:49:14 · answer #8 · answered by shaikhmohdmusa 4 · 0⤊ 0⤋
Are you getting a discount for paying a year in advance? If you're not just put the money in the bank and pay monthly.
2006-06-18 19:54:50 · answer #9 · answered by KL 5 · 0⤊ 0⤋
try a good MLM or Amway...if that doesn't work(as in you lost all your money) try a turnkey investment and use your car as collateral and purchase a carwash...invest all of your money in that....money should spill out all over you...
or you could do as every apt. office requests and pay your rent like a normal person....monthly...
2006-06-18 19:57:39 · answer #10 · answered by juanes addicion 6 · 0⤊ 0⤋