i would love another house or unit as renting is dead money?

Question

Yes renting is dead money but we need a roof over our heads but bi us paying rent we dont prosper the landlord does were as if we have a house we prosper and it will in the end become ours

Answer 1

Renting is an expense but houses cost even more to own sometimes.
Save your down payment and closing cost and something for repairs then buy one.
If you need to move because of a job change or divorce or something you will have cost to fix up and sell and might have to leave it empty a while while renting somewhere else. This can be a losing deal for the first few years until you have had appreciation.
Save as much as you can but take a couple of years to really know what you are doing and pick the right house for you. The right house is one cheap enough you can afford the mortgage, increased property taxes, things for the house like a garden hose and lawn mower. Also you need to beef up your emergency funds since you would need to pay if you need a hot water tank or furnace or if a tree falls on your house. Pick a house that is big enough to live in at least 7 years but small enough the heat bill doesn't kill you and a new roof isn't so expensive.
Then you will struggle a bit because the mortgage even the same as rent will cost you more in little ways like putting on new gutters or having to buy a ladder to clean gutters but you will cut other expenses like entertainment and vacations to make the house payment and in a few years you will be better off. Don't rush into it but work towards it

Answer 2

Renting is not bad. Even if you got a mortgage and bought a house today, your payments for the first 15 years would be more interest than principle (you'll simply be "renting" the money from the bank). Purchasing a home and then selling it again will cost several thousand dollars, and owning a home is a huge financial commitment.

Unless you have a 20% down payment, good credit, a very stable job, and concrete plans to stay where you are for at least 5-7 years, buying a house will probably hurt you more than it will help you.

Answer 3

I'm not sure I totally understand the intent of your question. Renting is not always a bad thing -- you need a place to live and there is nothing wrong with a landlord making money by renting to you. The landlord has taken a business risk and deserves to be compensated.

It is better for you to buy a house of your own because you will build equity and the money previously spent on rent will go toward building wealth. If you move frequently then renting is better but if you intend to stay where you are for about five years and can afford to buy then that is a sound financial decision.

Answer 4

Not at all. However, once you have the Bad Renter out, check with your mortgage banker and see if you can use the equity in your owned rental property to purchase a home for yourself. If you live in an area where home prices are fairly stable and you have secure credit, this can be an enormous financial advantage for you. The debt you take out is usually tax deductible, and much of the time buying is cheaper than renting as long as you have a stable work and credit history. This morning, mortgage rates on a 30 year fixed are BELOW 6%, which makes it a great time to invest in Real Estate! Good Luck!

Answer 5

By owning a home, there are few expenses that rent doesn't cover. Mortgage, property tax, insurance, HOA, repair & maintenance, these kind of expenses may cost you at least extra $800 per month. You'll very fortunate if the rent breakeven with the mortgage payment.