I am renting a home for $350 a month. (I live in a small town...that's the going rate.) It has two bedrooms, etc. and a two car carport. Its nice. But I love this house near by. It is for 64,900. That's average for homes around here that are more than 20 years old. This home is three bedrooms. They all have small closets. The basement is nice but one has to duck there head as they are going down the steps. There is a two car attached garage. The house has beautiful carpeting, wallpaper, and cabinetry. The owner is eager to sell so I could probably get it for 60,000. Maybe even less than that. Its been on the market for a long time because of no adequate dining area (only a bistro style table would fit in kitchen), small rooms and closets (the basement has lots of closets and shelves, though), and floral wall paper (too feminine for men). Everything else either costs too much or I would need alot of money for improvements and upgrades. This is turn key. And well maintained. Advice?
2006-08-26 11:13:22 · 9 answers · asked by whoanelly 3 in Business & Finance ➔ Renting & Real Estate
Find out how much property taxes and insurance would be. Call the county, call an insurance agent. You want an HO-3 homeowners policy. More expensive, but worth the money.
Add this to the loan (I get about $417/month on an 80/20 piggyback assuming good credit and enough income) Figure out what your monthly costs are, and of course whwther you can afford those costs. If you can, my most sincere advice is to buy. Real estate doesn't go up every year, but on average, you can figure on a positive return, and once you get the power of leverage working for you, you are going to be happy. You're also stepping off the escalator of rising rents and putting your cost of housing forevermore under your one control.
2006-08-26 18:06:20 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
Buying is always better if you can aford the payments (which are usually just about the same as rent, maybe a little more). Think about it, give someone $350 a month ... and get nothing... or begin to pay off a home which you can sell for more when the land appreciates. Make sure you figure in the taxes and insurane.
2006-08-26 11:21:21 · answer #2 · answered by _aihlie_ 3 · 0⤊ 0⤋
Ownership is always generally preferable to renting for the following reasons.
1: Real Estate generally holds its value or increases in value.
2: If you stay in the home two years you can buy a better home and roll your profits from your investment into the next home without paying any capital gains tax.
3: The interest on a mortgage is generally tax deductable unlike your rent you pay a landlord.
4: If you single home ownership makes you a good catch. :)
2006-08-26 11:20:28 · answer #3 · answered by beer234 3 · 0⤊ 0⤋
Of course you should talk to your accountant but try this:
Take the monthly payment that would be for buying and figure out what the interest for one year would be. Then take that figure times your tax rate. Deduct that figure from your mortgage payment and compare it to your rental cost. That's your cash out of your pocket comparison. Of course remember that the principal part of your payment is going hopefully towards your equity, which is a quasi savings. With rent it is the same as buying food, you need it to live but you don't get any financial gains from it.
2006-08-26 11:26:30 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
I agree, buy it! Of course that's assuming that you have the house inspected by a professional inspector and that you utitlize a Real Estate Agent to represent you. Also make sure you speak to a lender ahead of time to make sure you know how much money you need to close the deal (closing costs, down payment etc..) Real estate is always a good investment!
2006-08-26 11:23:47 · answer #5 · answered by Sam 1 · 0⤊ 0⤋
what area do you live? I would love to move there!
But to answer your question....ownership vs renting....OWNERSHIP all the way. The only thing is you should make sure you begin an emergency fund for the "rainy days" and there will be some.
When the faucet leaks, you can't call the landlord to fix it!
2006-08-26 11:24:55 · answer #6 · answered by tweetymay 6 · 0⤊ 0⤋
it would be a nice starter home for a young couple..maintain it if you buy it and the value could sky rocket and then buy a bigger and better home later
2006-08-26 11:20:10 · answer #7 · answered by nas88car300 7 · 0⤊ 0⤋
renting is like throwing your money away.
2006-08-26 11:20:37 · answer #8 · answered by larry j 3 · 0⤊ 0⤋
well here my mortage is 331.00 a month verses if i were renting it would be 860.00 month
2006-08-26 11:17:07 · answer #9 · answered by Anonymous · 0⤊ 0⤋