anything that you can tell me
2006-12-29 14:55:25 · 5 answers · asked by Anonymous in Society & Culture ➔ Other - Society & Culture
Well if you own your own home you can do what you please with it, you tend to take more pride in it as it is soley your responsibility. it is also a great investment, my house 15 years ago brand new was $128K now it is appraised at $220K that's a hefty profit margin when I pay it off in 2 more years. Sure you are responsible for the repairs and such not the landlord so you also learn how to fix things or pay absorbent fees to have it done, I am a do it yourself whiz though. Also in most states(Hawaii is the only one I know that differs) you own the land. Land is a commodity they aren't making any more of. So get it and hold it.
You also control the destiny of your investment not like the stock market, you can improve, maintain, or let it go to sh!t, it's your choice.
2006-12-29 15:40:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Most properties are purchased with mortgage loans. A landlord purchases a property with a mortgage loan intending to lease the property and have someone else pay off the mortgage loan, leaving that landlord with the whole real property after that loan is paid off while the renters have gained no assets through paying off the loan.
You can also purchase your residence through a mortgage loan. Only this time, when the loan is paid in full, you have possession of the asset.
It is quite often the case that you can pay the same amount per month to buy a property or to rent a comparable property.
The result of buying is that you end up with equity in the home which is an asset. The result of renting is that someone else ends up with that equity.
When buying your first home, remember some of these terms:
FHA, FIXED-RATE, TAXES, INSURANCE, and ESCROW. Try to get a fixed-rate, FHA loan and have the taxes and insurance paid monthly through escrow. That way you don't get surprised at the worst possible moment by an insurance or tax bill, because if you have limited means, things will be tight during the early years of your mortgage. Later, while landlords are raising rents year after year and your house payment remains pretty much unchanged, your economic condition relative to that of renters will be improved.
If you were living in a $1000/mo. apartment in 2006 and bought a home on a fixed-rate loan with a mortgage payment including taxes and insurance of $1000/mo. in 2007, you would eventually see the rate on the property you used to rent go to $1100/mo., then $1200/mo., and so on. Meanwhile, your mortgage payment stays $1000/mo., which means you are saving money in the near term, PLUS you are building equity in real property.
To me, it's a no-brainer. In all likelihood, the only people who will say I'm wrong will be those who own rental properties.
2006-12-29 15:22:36 · answer #2 · answered by Jonathan T 2 · 1⤊ 0⤋
Lots of reasons. You have a stake in the community, and an investment that can grow over time. My house is now worth more money than the total that I have ever spent on it for any reason whatever.
2006-12-29 15:10:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Tax breaks! Next best thing to having kids as far as Uncle Sam goes.
2006-12-29 15:06:21 · answer #4 · answered by mekeygabriel 2 · 0⤊ 0⤋
It's an investment into your future, your largest one. I just can't see myself paying rent any longer and supporting the financial future of someone I don't even know.
2006-12-29 14:59:32 · answer #5 · answered by C. J. 5 · 0⤊ 0⤋