To Rent or to Buy

When will you ready to buy a home? What are the benefits and limitations? Considerations generally fall into two categories.

MONETARY ISSUES

Renting:

* Little or no maintenance costs;
* No down payment. Do need security deposit and possibly first and last month’s rent;
* Can’t lose money from falling home values;
* Moving expenses in and out;
* No tax breaks;
* No property tax;
* Rent can rise with inflation;
* Typically you get less space for the money.

Owning:

* Ongoing repair and maintenance responsibility;
* Down payment required, but for some, can be little or no money;
* Can gain value and be available as a loan resource (equity loan);
* Can also be a major resource for money during retirement;
* Can lose value;
* Moving expenses in and out;
* On-time payments build good credit record. Late payments significantly harm credit record;
* Significant tax breaks can make payments as low as renting;
* Property taxes, insurance, etc.

NON-MONETARY ISSUES

Renting:

* Easy to move out;
* Not many responsibilities;
* Time to judge a neighborhood before making a permanent commitment to live there;
* Less stressful than choosing a home;
* May be restriction on noise, use, design, pets, children, est.

Owning:

* Moving typically requires more thought and time;
* Continuous responsibilities;
* Requires commitment to choice of home and neighborhood;
* Usually more control over home design and improvements;
* No restrictions on who occupies the home or how you use it (apart from any local ordinances);
* Pride of ownership.

Need some help, contact online at:

Remax – Cayman Islands Property – Your Real Estate Professionals in the Cayman Islands. Condos, homes & land for sale in the Cayman Islands.
Susanweisman – Tucson Arizona Real Estate – Offers Tucson, Arizona real estate listings. Commercial and luxury residential real estate for sale.

A HOME OR AN INVESTMENT

According to the National Association of Relaters, homes have tended to appreciate an average of 5%a year. Consider the impact than can have on your assets.
1. You buy a $200,000 home and put down $20,000 (10%).
2. The home appreciates 5% a year for three years to $231,525.
3. Aside from other costs, you’ve earned a 157.6% return on your investment in three years. Why so much? Your home cost $200,000, but you only invested $20,000. The $31,525 increase in value on that $20,000 works out be a 157.6% return.
On the other hand, that huge return may not give you as much profit as you think. there may be a considerable amount of other costs that would reduce your return. For example, you will have paid some closing costs. You may also pay a brokerage commission to sell the home and take your profit. In the end, most experts agree that people should buy a home first to be happy living in it, and second, as an investment opportunity.