Buy vs. Rent
Advantages Considerations :
Buy Property builds equity Responsible for maintenance
Sense of community, stability, and security Responsible for property taxes
Free to change decor and landscaping Possibility of foreclosure and loss of equity
Not dependent on landlord to maintain property Less mobility than renting
Rent Little or no responsibility for maintenance No tax benefits
Easier to move No equity is built up
No control over rent increases
Possibility of eviction
In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.
Plus you may see appreciation.
Buy vs. Rent Comparison (On Ginnie Mae Website)
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.
The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years
Yrs Rent Pmt Mortgage Pmt Monthly Diff Atter Tax Savings Yearly Diff After Tax Savings
1 800 1000 -200 -50 -2400 -600
2 840 1000 -160 -10 -1920 -120
3 882 1000 -118 +32 -1416 +384
4 926 1000 -74 +76 -888 +912
5 972 1000 -28 +122 -336 +1464
6 1021 1000 +21 +171 +252 +2052
7 1072 1000 +72 +222 +864 +2664
8-30 Savings increase every year
Let me know if I can help in your search
Regards, TomPrice 509 990 2020 tomprice@pruspokane.com
Prudential Spokane Real Estate... more
Looking to rent in 84121We see many homes in this area for sale. What are the chances that an owner would consider renting for at least a year? Do real estate agents ever manage a rental home for an owner?
Sure, there are places that accept short term leases. Are you looking to buy after the lease is up? Would a rent-to-own arrangement be beneficial to you? Give me a call at (608) 770-2144 or e-mail me at cbennett@homes4salewi.com if you would like to get a list of homes in the Madison area.
-Chris Bennett
(608) 770-2144
CBennett@Homes4SaleWI.com
www.Homes4SaleWI.com... more
There sure are - from time to time. I wish you had caught me before I just put some tenants in this beautiful Goshen home (in video below). If you can give me your information, I can help you track when the current tenants move out. Who knows - it may be available when you are ready to buy.
http://www.youtube.com/watch?v=XHBbB4guLak
With kind regards,
Mark Mulich - Realtor for Mulich Realty... more
The rental market in Simi Valley is good. We have a lot of people who choose to live here for a variety of reasons of course, like anywhere else. The general answers to the rent vs buy questions are answered in the first two responses fairly well.
A lot of people choose where they live for the lifestyle. Simi is a quiet bedroom community, a suburb. Families like to be here. Crime occurs but is fairly low. LA is such a diverse choice to compare to Simi, like apples and oranges. There are some areas of LA that have great schools and there are some that where people are afraid to send their kids to schools because of the gang related activities.
If you can be more specific, in say, what area of LA you are comparing it to, maybe what you are deciding between, I would be happy to provide a more specific opinion.... more
This is a great time to buy!!! Prices are low and interest rates are low!!!! Give me a call so that I can understand your needs better. I can be reached at 570-872-3524. Have a great evening!... more
Changing jobs does not automatically mean that your income will not be considered.
What job did you have and what job did you get and how long were you laid off in between.
Alan
It’s all about costs and lifestyle. Costs--financing v. moving-in, mortgage v. rent, repairs v. upkeep. Lifestyle--stability v. mobility, predictability v. flexibility, equity v. freedom from debt. It used to be all about equity. Now, there are other variables to consider in the balancing of the buy/rent equation.... more
To my surprise, I do not see market rents increasing significantly in the Baltimore & surrounding area. They were strong to begin with when compared to other markets (and still strong) , but I was expecting more demand/less inventory and have not seen that yet.
Those hitting hard times with job loss, foreclosure, etc....I'm seeing more of those families consolidating together or moving out of the area.
Maybe some areas are like how Suzanne describes below: slightly and slowly.... more
Hi Cassandra, please take a look at my listing here: http://www.trulia.com/rental/3084160406-1845-S-Ridgeway-Ave-Chicago-IL-60623 I am looking for a renter but would eventually like to sell this property.... more
Hi,
good answers below, here is a calculator that may help you better assess the cashflow impact of renting out your home
http://www.goodmortgage.com/Calculators/Investment_Property.html
consult with your tax accountant
Good luck!
Buyer 50%-60% Cash Rebate / Seller 50% Commission Discount
Quality Full Service! Work directly with the Owner/Broker.
(415) 305-2958... more
The simple, non-legal-advice answer here is "no". An extended answer would be "heck, no!"
Is it LEGAL for you to rent a home in the midst of foreclosure? Sure- you'd be doing nothing illegal. Is it legal for the owner to rent it to you? Again, the answer is in the affirmative. After all, the home's owner remains its owner unless and until the gavel falls at an actual foreclosure sale- and they can do with their place as they wish.
Is it ETHICAL for the owner to rent it to you? Perhaps, with a caveat: if they've fully disclosed the status of the home and you choose to rent it anyway, you assume the burden of having made a poor decision. What you CAN'T worry about is whether you're paying the owner rent with them not paying the mortgage. The lease that both of you share, the rent that YOU owe, and the mortgage that is HIS responsibility can't be mixed together. You simply have to decide whether you'd like to roll the dice and ride things out.
In deciding, weigh the fact that you WON'T be afforded any protections under the Protecting Tenants at Foreclosure Act of 2009. This law gives those in bona fide leases prior to the commencement of foreclosure proceedings certain protections- but entering into a lease for a property already in foreclosure could potentially leave you (literally) out in the cold.
I won't lease out a place that's in foreclosure, and I'll give up management of properties falling into foreclosure in the middle of a lease term at said lease's expiration rather than renew a tenant under the weight and uncertainty that the foreclosure process brings- and won't look to acquire a new, unprotected tenant. It's simply the right thing to do.
If considering renting AT ALL, I advise everyone to learn who owns the property they're interested in. Here in Florida, one can visit the local property appraiser's site and get their names. With names in hand, visit the Clerk of the Court's website for the county the property sits in, and search for any legal proceedings against the owners. You're looking for the filing of a "lis pendens" (typically coded with an "LP") that signifies the beginnings of foreclosure.
Choose wisely, and be prepared to accept the consequences of your choices should you make unwise ones.
Hope this helps some folks. Feel free to contact me with any questions you might have.... more