Is It Better To Rent Or Buy In The Current Economy?
Topics: renting, buying a home, real estate, mortgage payments, austin real estate, economy, mortgage calc
Historically speaking, the answer to the rent or buy question is that usually it’s smarter to buy a house. These are not usual times. The true answer to that question, of course, depends on the individual situation. There are some factors to consider when making this important decision.
Some of the normal reasons to choose renting over buying a home include plans to relocate in the next couple of years or a low rent payment. But in the current economy, renting could make sense for a number of reasons. Renting gives financial flexibility, allowing people to save or invest. Other than deposits and the monthly rental payments, there is no large initial outlay of money. There are no maintenance costs and time does not need to be set aside for upkeep.
It is important to consider the costs inherent to buying a home, such as down payments, closing costs, interest, insurance, and upkeep. Suze Orman, a financial analyst for CNBC, points out that the American dream of home ownership can turn into a nightmare for those buyers that get in over their heads. The wave of foreclosures across the nation can attest to that reality.
The pitfalls of home ownership now include buying a home that may lose value, as well as the difficulty of getting a loan in the first place. According to the National Association of Realtors, existing home sales fell 8.6 percent in November. The median sales price fell 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest national median price since February 2004. Which could mean it’s a great time to buy, or it could mean home values will continue to fall.
Home ownership is more than about just a place to live, it is an investment. The portion of your monthly payment that goes toward principle ideally raises the equity in your home each month. These days the return on the investment all has to do with long-term plans and the economic outlook. But look at it this way, the rent money goes totally into someone else’s pocket each month. There is a strong possibility that your home value will increase with time, especially if you plan to stay put for a number of years.
There are other benefits to buying a home, such as knowing your exact payment for the next 15 to 30 years, which can help with planning and budgets. Rent payments are likely to increase on an annual basis. There is also the potential to pay off the loan and have no monthly mortgage payment. There are the intangible benefits to consider as well, like pride in ownership and belonging to a community through being part of a neighborhood.
There is certainly no reason to rush into buying a home. In these uncertain economic times there may be good reason to be cautious. But there are also good reasons to be a buyer, such as historically low interest rates and lower home prices. Bankrate.com has a good calculator that can help crunch the numbers. If renting is what ends up being the best option, be sure to invest and save each month as well.
Ki helps buyers interested in Austin real estate www.escapesomewhere.com his website has a free search of the Austin MLS www.escapesomewhere.com along with updates on his Austin real estate blog www.escapesomewhere.com
Previous Articles Highlighter:
The Top 3 Essential Traits All Highly Lucrative Forex Investors Possess (1)
William R. Alheim, Jr. possesses a Masters of Accounting Degree from Florida International University. He is a Certificated Public Accountant license issued by the state of Florida.
Dealing With Your Creditors In The Credit Repair Process (2)
Should you request a rescheduling of payments and due dates, and the creditors agree to this you have to stick to this commitment. Most creditors will respect the fact that you are contacting them and are interested in the credit repair process, and will accommodate you as much as they can, that is why this honesty and openness is so important to your plight, as should you stick to the new arrangement your credit score and or report will not be as damaged as if you had not contacted the creditors and made the said arrangements.
Residential Real Estate: Now Is The Time To Invest (3)
The real estate bubble has burst leaving some with misfortune but creating great opportunities for others. Now is the time to invest in residential real estate, whether you're on the market for your first home or are considering expanding your investment portfolio.
How To Trade Forex And Bring Home The Bacon (4)
I am going to tell, yes you can make money, you can make lots of money and you can do it very quickly too. I could tell you the hard way to make money, which is to learn how to trade Forex.
Pros And Cons Of High Risk Loans (5)
They are basically designed for quick fix financial problems with the hopes that you can repay the money back rather quickly. It is best to have a fast payment plan with these type loans.
5 Reasons To Consider A 30 Year Fixed Mortgage Rate (6)
A homeowner should pursue, wherever possible, a mortgage with a guaranteed interest rate. It is not uncommon to see lenders offering deals that are too good to be true.
Reducing Your Car Insurance Cost With Effective Tips (7)
8) Once you get your insurance, drive safely and try not to put on too many miles for your car. This can help immensely for the next year for your insurance renewal.
Michigan Car Insurance - Know The Rules First (8)
Hence, if you dont have any speeding tickets or any serious traffic violations, then you will be eligible for a special discount. In addition, if you have completed a safety driving course, then you may be eligible for an extra discount too if you have a safe driving certificate after completing the course.
No One Wants To Buy My Home (9)
The main fact is that foreclosure will be halted (in most cases) once you have secured a buyer and exchanged contracts on the deal. Once completion is made on the deal you will have the money from the sale usually in your bank the very same day.
Austin Neighborhood Profiles : Tarrytown (10)
However, further down Exposition, the Tarrytown Farmer's Market runs every Saturday morning. Lauren Tolley, owner of Talulah Bleu Tarrytown Florist, also runs the farmer's market. Tolley took over the Tarrytown Florist from the R.A.
Low Cost Health Insurance (11)
If you prove that you have good health you can get a good quote, and if you have the necessary health care certificates the process becomes even easier. Learn more about health insurance ratings and visit healthinsuranceonlinenow.com to find out more about your health insurance options.
Buying & Selling Real Estate Subject-To The Existing Mortgage (12)
So subject-to transactions can be used to solve problems for both buyers and sellers. I once did a "subject-to" deal with a seller who was getting married and moving out of state.
The Top Three Forex Trading Systems And The Reasons Why They Outclass All The Competition (13)
And the best tools available today are called Forex software trading system. If you're investing in the markets today it is not a question of if you should have one, quite simply it is a requirement if you desire to pull in the profits on a consistent basis.
Classic Car Insurance - How To Get The Right Insurance (14)
In the case of a more serious accident, the cost of repair for your classic car can cost in the range of tens of thousands of dollars. Moreover, a classic car is a high theft risk and thus this criterion also causes classic car insurance to be very high in price as compared to normal car insurance.
Quick Tips On Selling Your Home (15)
Which points will be the most unappealing? Keep that in mind and you will put yourself leaps and bounds ahead of many homeowners trying to sell their homes. RE/MAX of Missouri (www.remax-missouri.com) is a real estate brokerage that specializes in Branson real estate.
House Hunting In New Jersey (16)
If you would rather a comfortable neighborhood with a family-friendly feel, some of the older neighborhoods may be the better choice. Many people choose the neighborhoods based on the schools that their children will be going into.
About Debt Consolidation And You (17)
These companies will be able to smooth talk and make you feel like they can make all of your debt problems go away. However, getting out of debt is hard work, and if a debt consolidation company is to be used, consult one with great reviews.
Tips For Selecting The Right Mortgage Broker (18)
-- Ask for a broker's fee policy in writing, and compare it with others'. If there is a great disparity between a broker's fee and those of his competitors, chances are he may be charging excessive amounts.
Tips To Rebuilding Your Credit Card Ratings (19)
Agencies in charge of monitoring your credit can also help rebuild your credit card ratings. They frequently check most of your transactions to view your purchase or transactions made using your credit card which is also one of the best ways to rebuild poor credit card ratings.
Day Trading: A Little Bit Of History (20)
The new system required the use of brokers to make trade for customers, and the cost of commissions cut into any profits. Investors also were forced to depend on the reliability of their particular broker rather than on their own abilities.
Newer Articles Highlighter:
Followers Are Leaders Only To Other Followers In Trading (1)
It can be very scary to go out there and break out on your own, make decisions against the crowd. In our minds we have blown it up into something much larger than it really is.
Housing Market Bottom - Price-to-Rent Ratio Estimates (2)
Price-to-rent ratio fluctuates over time as changes in the cost of ownership and terms of financing makes financing amounts vary and house prices vary as well. One of the major components of any projection using price-to-rent ratios is the projection of future rents.
Getting Assistance With Your Mortgage Rates (3)
Now, banks like Citigroup and JPMorgan Chase are offering mortgage terms adjustments to homeowners even if they've missed no payments at all. Before you fall behind on your payments, you can contact your mortgage company to discuss the terms of your loans.
Mauritius Offshore Company Formation. Which Type Is Best For You? (4)
Corporate and nominee directors are allowed. Stricter Know Your Client laws make this a lesser used option for pure offshore companies which do not need the double tax treaty advantages.
Incorporation Offshore And Offshore Banking In Tax Havens Made Easy (5)
So a legal judgment against one does not affect the assets of the other. Most incorporation consultants come with an extensive background in either business or commercial law. Indeed, many of the companies offering consultancy services recruit a number of people from each of these disciplines in order to provide a range of services.
Business Incorporation Resources Available For Incorporation (6)
The regulatory authorities in most parts of the world have more or less the same requirements for the incorporation of a company but with different forms or different terminology. When all the requirements are complied with the process of incorporation is complete a certificate is granted by the relevant authority which is known as a certification of registration or incorporation.
Business Incorporation Formation: A Brief Guide (7)
A corporation is also known as a company in many jurisdictions. Both words have the same implications and represent a body incorporated under the relevant company laws. Incorporation is abbreviated as Inc.
Seychelles Banking: Easy Rules, World Class (8)
The annual license fee for Seychelles banking companies is not very large. This fee is payable to the Central Bank in any convertible currency. Currently there are five licensed foreign banks in the Seychelles, and two domestic banks which have been listed above.
The Tax Havens A To B (9)
Some of these benefits include being exempt from all income taxes and stamp duties. As part of the IBC some of the regulations meant that foreign investors are not allowed to start a banking institution, nor are they allowed own real estate in Belize.
Company Incorporation In Mauritius: Comes In Many Forms (10)
Section 6 of the PCC Act stipulates that the suffix "PCC" must be added after the name of the company. A PCC may also be converted into a normal GBC 1 company incorporation in mauritius.
Dubai Formation: Business Set Up In UAE (11)
It is surrounded by a target market cachement area of more than 1 billion Arab speakers and another billion South Asians. Which just happens to be one of the fastest growing markets in the world.
Incorporation Template: Helpful But Not A Replacement For Human Experience (12)
These firms and individuals are seasoned professionals and can understand your requirements even better than you do, because they know the alternatives available. They can guide you, advise you, complete all relevant documentation needed for the incorporation of your business and can even file these documents with the concerned regulatory agency on your behalf.
Seychelles Tax? Or Lack Of Any Taxes! (13)
The President is the head of state. Brief History: Seychelles was initially colonized by the French, however in 1814 it became territory of Britain. In 1976 Seychelles achieved its independence from Britain.
Tax Shelter: Till A Fair Tax Is Introduced, Use It! (14)
Practices such as paying high interest rates on investment can actually reduce income on investments but when the same investment is withdrawn a substantial capital gain can be made. This is because taxes on capital gains are much lower when compared to the taxes on investment income.
Incorporation Of A Business Has Never Been So Easy! (15)
So when you look at incorporation of a business, also check and delve into the world of incorporation offshore and see how it saves your wealth. Ramapati Singhania specializes in creating and managing web businesses.
Incorporate IBC BVI: The Popular Tax Haven For Incorporation Offshore (16)
Ramapati Singhania specializes in creating and managing web businesses. His latest website www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog, www.ramapatisinghania.com
Company Offshore Registration Is Easier Than It Sounds (17)
Ramapati Singhania specializes in creating and managing web businesses. His latest website www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog, www.ramapatisinghania.com
Article Of Incorporation For Corporations (18)
Sample of articles of incorporation are not standard and vary by jurisdiction. Even Microsoft Office has some templates of the Article of incorporation for companies which can be really helpful to you if you want to see what a typical article of incorporation looks like.
Corporation Attorney: Expensive But Extremely Helpful! (19)
The corporation attorney can advise you about your proposed business. He can guide you as to which type of corporation suits your needs and in many cases he or she can help you with the best jurisdiction for your business, including offshore locations.
Offshore Investment Companies: Based Out Of Tax Havens (20)
In fact offshore investments managed by offshore investment companies are completely legal and are regulated by the jurisdictions of those countries where investments are made. Investors who live away from their home country, those who want to maintain their financial privacy and those who want to protect their assets legally usually opt for offshore investments.
Permalink to Is It Better To Rent Or Buy In The Current Economy?