Which Is Better For Me Buying Or Renting

Which Is Better For Me Buying Or Renting

To buy a house or not buy to buy a house that is the question? When considering home ownership, you need to weight the advantages and disadvantages for yourself. If you are like most people, you will find that real estate ownership is worth the risks and disadvantages.

More often than not the benefits of owning a home can out way the benefits of renting, but home ownership is not just something you should jump into with fear! The most important thing you should remember when buying a home is to only buy it when you can afford it. Most often people make the common mistake of letting the market determine when they should buy a home & forget all of the senses, adding tons of stress on themselves, by telling themselves I have to have this or that, it’s just stuff people! Take the weight off your shoulders, & breath you are the one going to be stuck paying for the property not your realtor, mortgage company, friends, or bank. So don’t let them tell you when to buy or not to buy you make that decision on your own. No one can tell you what a great deal you are getting unless they are paying for it with you. Back in 2005 my mother purchase a house in Riverside, Ca $299,990 that same house is selling for $100,000 in 2011. She purchase this property with a %100 percent down & about $3,500 closing cost. She thought she could play the real estate game like everybody else & ride the equity wave, & cash out when the time was right. Unfortunately that didn’t work out for her to well, the house went into foreclosure, she couldn’t keep up with the payments & the maintenance. Given the fact my mother started saving for her retirement late in life like some people she thought by jumping into real estate & earning some equity she could make up the difference, even though she didn’t have any money to put down on the property, she thought it was a great idea. She was going to save equity, sell the house in like ten years are so, & retire nicely, but we all know how that turned out. Even though a lot of people have gotten away with the equity game in this country, bit doesn’t mean that’s going to work for the most of us, so you better evaluate where you are before you decide to by real estate. I was able to sit down with my mother, after her foreclosure, & now that her ears where opened, & help her evaluate what she wanted from where she was now. This is were we started she 60years old, she will reach full retirement when she is 66years of age, her car will be paid off, all her debts will be paid as well. As a preschool teacher, & being at full retirement age when she reach age 66 she can, receive her pension, her full social security check, & continue to work until she is 72years old. Why would she want to do that you ask?
If she took her income check & saved most of it in a money market for a house, She Could live Off Of Her SSI, & Pension:

$0.00
Investment Years 5 years.
Additional contributions $1,500.00 per month
Rate of return 1.00% compounded daily
Total amount She will have contributed $90,000.00
Total interest $2,326
Total at end of investment $92,326.38
This Will Be For My Mom’s House, Are Most Of It Anyway.

Now that most of her retired friends will be living in homes that are almost paid off, she can live right along with them. However If she decides not to work the extra five years, she would have to pull the $90,000 plus out of her 401b retirement plan, which I didn’t recommend, but understood if she did. Had she not enacted this plan her retirement money would have been very limited, & very expensive to maintain a living on. I strongly suggest you sit down & evaluate where you are, where you want to be, & how you are going to get there, because the government is not going to bailout the people, remember how the saying goes, asks not what your government can do for you, but what can you do for them. My mother’s experience has forced me to evaluate my on situation, by take a look at my own financial report before I buy a house, & how does it fit into my retirement plans, when should I buy, where should I buy, why should I buy, Is it a business, or a place to live. Why annualizing my own situation I decide I want it all. So my financial plan goes like this.

2011
Age 41 Single
$84,100.00
Years 21 years.
Additional contributions $350.00 bi-weekly
Estimated Rate of return 401k/TSP Government 5.00% compounded daily
Total amount I will have contributed $275,200.00
Total interest $303,514
Total at end of investment $578,713.92

Real Estate Savings:
Starting amount $1,075.00
Years 21 years.
Additional contributions $250.00 per month
Estimate Money Market Rate of return 1.00% compounded daily
Total amount I will have contributed $64,075.00
Total interest $7,384
Total at end of investment $71,458.73 Buy A House 75% Are More Down With This Money On My House

Social Security At Age 62: $1,339
Postal Pension $1,933 37years Of Service
Debt $0

[Hold May 401k Savings (578,713) For
8Years After I retire At Age 62 To Age 70
Must withdraw By Age 70 Are It Will
Go Into An Annuity, & I don’t want To Do That!
Begining amount $578,713.00
Years 8 years.
Additional contributions $0.00 per month
Estimated Rate of return 5.00% compounded daily
Total amount I will have contributed $578,713.00
Total interest $284,601
Total at end of investment $863,314.35
Invest About $263,000 In An 8 Unit Are More Apartment Building, & Hire A Property Mgr. (This option Is For Myself, I Like A Little Risk)]

So lets see where are you going to start how about, by evaluating where you are that will give you a better idea of what it is you really want, do you what be the one paying a high mortgage for 30years, that’s depended on you having a job or if you are like me, & you are fine with renting until you retire. Whatever you decide there are great benefits to owning a house the question is just when do you really need it, I say when you can afford it!
Listed below are some things you should think about before buying home.

1) Controlable Housing Cost
2) Tax Savings
3) Debt Consolidation
4) Equity
5) The title of ownership
6) Increased Expenses/Maintenance
7) Risk Of Depreciation
8) Possible Foreclosure

Always consider your financial goals before buying a house. Weight all the long term pros & cons before property.

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