I need advice on whether to rent my house out and buy another since it is a buyer's market with all of the foreclosures in Atlanta. Should I buy now or wait and pay off my student loan(10,000) and a home equity(20,000) first.
2007-06-07 08:45:08 · 5 answers · asked by MARIA S 1 in Business & Finance ➔ Renting & Real Estate
if you have $30K in short-term debt, it might be difficult to buy anything. How strong is the rental market in the area? Even though it is currently a buyer's market, it may still be too over-inflated to buy rental property if rents cannot support operating and debt expenses.
Run the numbers carefully.
2007-06-07 09:03:53 · answer #1 · answered by therainbowseeker 4 · 0⤊ 0⤋
When there are a lot of houses on the market and nobody is buying, that is the time to buy a home. Remember, the three most important things when buying a home is location, location and location. If you and your husband have stable employment, a 20% down payment and decent credit, now is the time to go for it. If you have children, look at a home as a way to build an estate for them, or even build equity that you can draw upon with a refinancing, so your kids can get a decent university education. Real estate will always be a good investment. Look at the tax breaks for the interest and property taxes. Give this some serious thought.
2016-05-19 02:08:22 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Well I could tell people to look at possible appreciation rates of property in your area and interest rates of mortgages and where your student loans are fixed or not. If you can make more buying real estate vs. paying off the loans go with it. Generally because the student loan rates are so low, people carry them for many years because the can make more by investing in a home or investment property.
2007-06-07 09:02:55 · answer #3 · answered by bpl 5 · 0⤊ 0⤋
Yes, it is currently a buyer's market, with prices deflating from what they were a few years ago. Are you certain that the period of deflation is done and that no further deflation will occur ?
Take care of your other debts before you jump into a market which is still not entirely stable.
2007-06-07 09:01:05 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Hi, there's no need to rush. Get your priorities right. Build a solid financial foundation.
Check out this site. http://www.financemind.com/budget/steps-to-financial-freedom.html
It shows you what areas in your finances to tackle first, second, third and so on.
2007-06-08 01:36:59 · answer #5 · answered by lemongrass 3 · 0⤊ 0⤋