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Home Improvement Help
Help can be found easily when it comes to home improvements. You
can hire a local handy man to come and help you or you can pull
in some favours from friends and family members, either way it
is very easy for help to come and guide you through...
Is a Landscape Architect Really Necessary?
Many people feel that when they are ready to design a landscape, that a landscape architect is necessary. They do not feel that their natural tastes or inclinations are “correct,” and they feel that they may irrevocably ruin their yard if they...
Quick And Easy Bathroom Decor Changes
Are you tired of the way your bathroom looks? Don't feel bad, a lot of folks are in the same boat. The bathroom is one room in the home that can look drab and run down very easily. And what if you don't have an unlimited budget to make changes in...
'Re-tiring' Old Mulching Routine Paves the Way to Ten Worry-Free Years
(ARA) - The yearly routine of digging up last year's mulch and replacing it with a fresh supply can be time consuming, messy and expensive. But one new product can put consumers on the road to a full decade of worry-free mulching -- and...
Wooden Floors Are In
If you don't believe wooden floors are in high demand, just try watching a show like "House Hunters" on HGTV. If you had a dollar for everytime someone said the phrase "hardwood floors" you could pay your cable bill.
Why wooden floors?
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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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