I own a new condo and the rent on my style of unit is going for about 1200/month and the mortgage with everything included is about 1600/month.
2006-09-11 05:34:59 · 11 answers · asked by Cory S 1 in Business & Finance ➔ Renting & Real Estate
I guess the only time this would make sense is if you cannot get anyone to rent it for the mortgage amount and you cannot sell it. Partial payment is better than nothing. Other than that, I can't think of why it would make sense.
2006-09-11 05:37:19 · answer #1 · answered by Nunya 5 · 1⤊ 1⤋
Only if it cannot be rented out for more than the mortgage, or that you are doing remodeling on the place. The hassles involved in remodeling can be a pain so a landlord might give the tenant a break. Some times a place is only being rented out for a few months while the owners are out of the country, or doing something else, then because it is temporary and the owner is going to live in the place having a lower rent might also work. Generally you want tenants to pay more than the mortgage because that way you can put some of that money in an account to be used on fixing the place up, or a vacation for the owner.
2006-09-11 05:44:23 · answer #2 · answered by Lady 5 · 0⤊ 0⤋
Yes it does, for a long-term investment. If you financed when interest rates were low, and you purchased with little or no money down, you'll have to wait for the rent market to catch up. If you have the money to sink monthly, just wait it out. You'll also be able to deduct taxes, depreciation and rental expenses. Sometimes people have to go out on a limb to make real estate investments. It's not always about immediate payoff.
2006-09-11 05:43:34 · answer #3 · answered by georgia b 3 · 0⤊ 0⤋
Not a good option. BUT if your tax deductions you are allowed save you tax dollars then it would make sense. you need to check you tax rate and see with tax wrtite offs of interest and taxes and any F&F you have in the place what the net cash outflow you have vs the rent.
While you rent i hope the property increases in value and you can also raise the rent each year.
2006-09-11 05:43:55 · answer #4 · answered by sligoman 4 · 0⤊ 0⤋
Doesnt make sense at all unless u want to keep the condo and have another place to live (for free) for the moment and need the help in paying your mortgage, but if you want to pay for your own place then makes no sense
2006-09-11 05:39:57 · answer #5 · answered by Surviving on love 3 · 0⤊ 1⤋
those that employ don't have the money and the credit to get loans from the financial employer to purchase a house. yet another reason is residences are everywhere, you may get a place rather close to the place you paintings. i think of it rather is a controversy of the place you at in life (financially and in some circumstances life style).
2016-11-07 02:45:20 · answer #6 · answered by hartzell 4 · 0⤊ 0⤋
Uggghhh,,.,yeah...that means you'll only be making a 400 dollar payment to the bank every month...
2006-09-11 05:43:18 · answer #7 · answered by jaike 5 · 0⤊ 0⤋
Not a good investment. You're going to be in the hole every month. Ouch!
2006-09-11 09:25:38 · answer #8 · answered by akc1106 4 · 1⤊ 0⤋
not really. maybe if youre living in a boom town and think the value is going to shoot up in value in the next couple years, or if you really want to keep it for some reason
2006-09-11 05:40:51 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Um, does it make sense to light cash on fire??? NO!
2006-09-11 05:40:02 · answer #10 · answered by Anonymous · 2⤊ 1⤋