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Get Your Home Ready To Sell
Have you been considering selling your home in the near future? If you have, then it wouldn't be a bad idea to take a good long look at your home, using an unbiased eye.
After all, a clean, appealing, well maintained home has much better odds...
Is a Solar Home Right for You?
Ste
p 1 - The Energy Audit
If you would like to construct a solar house, you will need to
conduct an energy audit to calculate the total requirements of
your daily energy needs.
Most of the energy that is consumed in your house is...
Selecting The Best Real Estate Agent For You
Let's face it: selling or buying your home is probably one of the biggest, most daunting projects you will ever take on in your life. It's a monumental event that could impact a large part of at least the next few years of your life, and it's for...
Visions of Sugar Plums and Holiday Safety
Ho, Ho, Ho, Holiday greetings to you!
Every year at this time I can't help but notice the beautiful holiday lighting and adornment. It's great to see that even homes with a "For Sale" sign on the front lawn have been bedazzled with lights! But...
Wake Up And Smell The Smoke
Saturday morning I woke up alone. Slowly before opening my eyes I began to stretch. Taking inventory as I moved one limb at a time, yes, all the usual aches and pains were still there. I don’t know whether I felt or heard it, but there was a major...
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Renting Versus Buying A Home
Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Yes, even in the current hot real estate market.
Renting – Advantages
Renting can have a few advantages depending on the part of the country you live in. The primary advantage is your monthly rent payment may be less than an equivalent mortgage. A secondary advantage is the fact that maintenance and improvements to the property are the responsibility of the landlord. Still, these advantages pale in comparison to the disadvantages of renting.
Renting – Disadvantages
The disadvantages of renting are significant. If you have any opportunity to purchase a home or condominium, it almost always makes sense to do so.
The biggest disadvantage of renting is the loss of value. Assume you rent a residence for $1,000 a month and you live in the residence for two years. You will have paid a total of $24,000 in rent, a pure expenditure. The $24,000 is simply gone and you will have nothing to show for it other than the time you spent in the home. Compare this to what your landlord has gained.
Rent payments are closely aligned with a landlord’s mortgage payment. Using the above example, lets assume your $1,000 rent exactly equals the mortgage payment. For two
years, you have indirectly paid the landlord’s mortgage, helping them build equity in the house by paying down the loan. In addition, the landlord has benefited from the appreciation of the property.
By appreciation, I simply mean the amount of increase in the value of the house. If the rental appreciated $20,000 in two years, the landlord has received a windfall. They may have seen a gain of $24,000 in appreciation and payments lowering the mortgage. As a renter, you have made this all possible. The landlord no doubt would like to thank you.
Now, what would have happened if you had purchased a similar home with similar financial figures? You would have seen an increase in YOUR wealth of $24,000, not the landlord’s wealth. If you renting, these figures should make your teeth grind.
If you are renting, you should be out shopping for your own property. After all, isn’t it time to make your money work for you, not a landlord?
About the Author: Raynor James is with http://www.fsboamerica.org - an online site providing national exposure for sellers listing properties and a database of properties for buyers.
Source: www.isnare.com
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