After years of homeowning, we have moved to another state where prices are double for a home. It seems like I can make more money on our home sale gain by investing it rather than paying huge interest costs. Ideas?
2007-01-13 21:10:45 · 11 answers · asked by ? 5 in Business & Finance ➔ Renting & Real Estate
It is the Denver, Colorado area and the price range we are looking at is about $400-$500,000. Rent for a comparable home is about $1500.
2007-01-13 22:12:56 · update #1
Like lucky said there are many benefits to owning a home equity tax breaks I think you would have to be pretty knowledgable or lucky in the stock market to find a better investment than property but then again it depends on where the property is what the average rent is in the area but renting is like throwing money away
2007-01-13 21:20:56 · answer #1 · answered by JOHN D 6 · 0⤊ 0⤋
The simple answer to your question is NO there are no financial benefits to renting vs buying.
Long term if you have a sizable down payment for a home it is always the best way to go, the benefits far outweigh the cost of financing.
It is important to note that borrowing money to buy a home, the place where you live is the ONLY thing worth borrowing money for.
In your situation it might be a good idea to rent for a year or two, get to know the area and decide where exactly you want to buy.
But DO NOT invest your money in the stock market, park it somewhere that is federally insured. You wont get a great return but you will guaranteed to have more than you do now.
2007-01-14 00:19:30 · answer #2 · answered by edoubleyou 4 · 0⤊ 0⤋
2
2016-07-20 07:40:01 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If you qualify for a low interest home loan, 6% or less, your equity buildup will quantify higher benefits.
If you are in a bubble housing market where prices are crazy, renting is better.
I was going to say to check with a local Realtor, but they lie.
Sorry, it depends on what part of the country that you are going to.
2007-01-13 21:23:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
somtimes..depending on the amount of money you will get from your home selling will determine your investment options. you could purchase some smaller rental properties which would give you a postive cash flow with the security of equity growth without tying up all your assets in one big real estate purchase that might gain value. whatever you do talk with your banker, and get as many suggestions as possible. review your decision very carefully. it will affect you for the rest of your life. good luck.
2007-01-13 23:36:44 · answer #5 · answered by Van F 2 · 0⤊ 0⤋
in case you purchase, do not purchase all of it money! Get a loan. 250 money is allot of money, so use it properly. in case you place 10% down, you ought to purchase a house, stay in it, get the tax reward etc. as an proprietor, and you nonetheless have 225K left! With this you could placed money into greater genuine belongings or in a Cd and make money each month! that's if the abode fees are approximately 200K in Montana? whether the charges bypass down, you purely have 25K invested interior the valuables as a exchange of 200K. you will make 5% interest on your 200K each month and your loan charge would be a tax write off. So, as a exchange of spending money on hire, your loan could in all danger not be plenty greater then hire once you upload the 5% you will get from you discounts CD. merely confirm you get a reliable loan, are not getting riped off! Negotiate. is sensible?
2016-10-19 23:13:57 · answer #6 · answered by ? 4 · 0⤊ 0⤋
THe financial benefit to buying a home is equity in the property. You can also receive a tax break on your income tax when you own a home.
2007-01-13 21:15:00 · answer #7 · answered by lucky 2 · 1⤊ 0⤋
That is great if you trust the stock market. I don`t. At least a home is a investment you can sleep in.
2007-01-13 21:23:11 · answer #8 · answered by bill a 5 · 0⤊ 0⤋
Rent-To-Own Home - http://RentToOwnHome.uzaev.com/?cTdY
2016-07-13 03:22:51 · answer #9 · answered by Crystal 3 · 0⤊ 0⤋
This is what I was told.
Why put steak on someone else table, when you can have it on your own.
Renting only makes someone else money, it does nothing for you financially.
2007-01-13 22:47:35 · answer #10 · answered by eyes_of_iceblue 5 · 0⤊ 0⤋