Just received an email from a lender that most have gone up to 3.5% on 30 year conventional loans due to the weekly unemployment numbers. He is keeping his at 3.375%. If you need his name, email me at westwinds4jc@aol.com.
I'm glad to see unemployment go DOWN, as more people can now afford houses, if they have a job. I want people to have the American dream so that they aren't throwing away rent money. If you have a house you:
1. get to pay property taxes and take them off your income; when renting you get to pay the landlord's property tax with increased rent, and he gets to take it off his taxes.
2. get to paint any room any color you want, such as my son did a eggplant purple dining room. If you rent, the landlord chooses the color, and it's usually white.
3. You can hang anything from the walls and ceilings you want. If you rent, the landlord probably has rules about that too.
4. You can add a chandelier with pink flamingoes. Not if you rent, unless you want to give it to the landlord when you move.
5. Plant trees and flowers and have a dog and cat. If you rent most like no CATS as their odor is hard to get rid of. My daughter was told by her landlord that they are to maintain the trees and yard as they found it, and even though a tree died, they aren't allowed to plant one to take its place, and they had to get landlord to remove it when it started tilting toward the house. Boys weren't allowed to go outside and play until landlord found the time to cut it down. He also forbade a dog in the backyard.
6. Pay interest on a loan and take it off taxes. If you rent, you pay the interest on any loan the landlord has on the property through increased rent.
7. A steady payment. Get it set for 30 years. With rent, it usually goes up every year or so. No way to budget in advance.
8. Feel the pride of ownership. Nothing like knowing this is my house (along with the banks) rather than feeling like you are borrowing your living space from someone else.
9. changing that ugly linoleum in the bathroom that's curling for some nice ceramic tile. My daughter's bathroom linoleum is gross!! But her landlord is in love with it.
My daughter, a realtor, knows all this, and now that their student loans are all paid, their credit score will go up, and they plan to buy asap. 9 years of renting and they are finally going to be able to buy and get rid of the white walls, the nasty carpet, the ugly lineoleum, get a dog, plant some trees, and get some tax write-offs. Life is good for the homeowner.
Showing posts with label renting a home. Show all posts
Showing posts with label renting a home. Show all posts
Saturday, January 26, 2013
Tuesday, October 23, 2012
Charting the difference: Rent or Buy a House.
 | Judy Dendy, TLP, Relocation, ECertified Prudential Ada Reators westwinds4jc@aol.com |
Rent or Buy? - 10/22/2012
The question plaguing every tenant who wants a home of their own is whether they should continue to rent or is it the right time to buy?
The combination of good prices and low mortgage rates make it considerably cheaper to own than rent in most markets. Assuming a person is qualified with a down payment and won't be moving for several years, there may not be a better time to buy a home.
In the example below, the total house payment is $1,281.01 compared to $1,500 to rent the same home. Before you consider any of the financial benefits attached to home ownership, it's cheaper to own than to rent.
The net cost of housing falls to $764 or just more than half the house payment when you consider the principal reduction due to normal amortization, a modest appreciation and the tax savings along with a reasonable maintenance expense that a tenant would not have to pay.
One of the biggest benefits is the growing equity. As the value goes up, the unpaid balance goes down. A favorable leverage causes their low down payment to grow to $40,609 in a short seven years based on a modest 1% appreciation.
There's an expression often heard in real estate circles: "Whether you rent or buy, you pay for the house you occupy." You're either buying it for yourself or you're helping the landlord buy it.
Check out a Rent vs. Own to see how your numbers will compare to this example or call me to do it for you
The question plaguing every tenant who wants a home of their own is whether they should continue to rent or is it the right time to buy?
The combination of good prices and low mortgage rates make it considerably cheaper to own than rent in most markets. Assuming a person is qualified with a down payment and won't be moving for several years, there may not be a better time to buy a home.
In the example below, the total house payment is $1,281.01 compared to $1,500 to rent the same home. Before you consider any of the financial benefits attached to home ownership, it's cheaper to own than to rent.
The net cost of housing falls to $764 or just more than half the house payment when you consider the principal reduction due to normal amortization, a modest appreciation and the tax savings along with a reasonable maintenance expense that a tenant would not have to pay.
One of the biggest benefits is the growing equity. As the value goes up, the unpaid balance goes down. A favorable leverage causes their low down payment to grow to $40,609 in a short seven years based on a modest 1% appreciation.
There's an expression often heard in real estate circles: "Whether you rent or buy, you pay for the house you occupy." You're either buying it for yourself or you're helping the landlord buy it.
Check out a Rent vs. Own to see how your numbers will compare to this example or call me to do it for you
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