It's a buyer's market for those searching for housing with record low mortgage rates and record low prices.
But for some, renting makes much more sense reasonably, particularly for the short term, which is generally less than five years.
It's been a rough economy particularly for housing these last few years.
Only in recent months have there been any actual signs of revival.
So how do you persuade someone that it's in their best interest to rent? Reflect on the following and analyze if you really want to buy or rent a property.
- If there is a possibility of relocation, it's almost always better to rent.
It's not easy to sell a home swiftly in this market, and applicants would be better off renting until they have a steadier job where the risk of being relocated is eliminated.
- Mortgage companies have tightened lending restrictions dramatically, usually requiring 20 to 30% down, as well as a credit score above 620.
Anything below means a higher interest rate as well as a higher down payment.
If an applicant's credit score is lower than 620, it would be much more costly for them to purchase a home.
For these applicants, renting is much more inexpensive.
- Many people enjoy a pretty view, but don't really want to be the one out in the hot sun cutting the grass and planting the flowers.
Home maintenance and repairs can also be costly for those owning a home.
Remind them that YOU take care of things like refrigerators that stop working, or leaking roofs.
On the other hand, if you rent, chances are there will be a Property Management Company who will look after these maintenance and repairs.
- Tax breaks may not be as considerable as expected.
Depending on the interest rate received on a loan, and the applicant's tax bracket, the write ooff they receive on their taxes may not be important enough to make it a real factor when determining whether to rent or buy.
Of course, it's best to consult a tax specialist to determine this or any other tax break.
- For the last 15 years, homes have appreciated annually at about 1% when figuring in inflation.
If your applicant is looking at homeownership as a good investment, they may want to consider this fact.
- While the kind of housing crash that happened in the last several years is less likely to happen again, it's vital to educate applicants considering home ownership to consider these and other facts.
Renting offers a liberty that home ownership does not, and while owning a home is a great asset and venture, not everyone is suited for home ownership.
Millions of people are now in homes with mortgages much higher than what the house is appraised for in essence trapped, whether they wish to move or not.
But for some, renting makes much more sense reasonably, particularly for the short term, which is generally less than five years.
It's been a rough economy particularly for housing these last few years.
Only in recent months have there been any actual signs of revival.
So how do you persuade someone that it's in their best interest to rent? Reflect on the following and analyze if you really want to buy or rent a property.
- If there is a possibility of relocation, it's almost always better to rent.
It's not easy to sell a home swiftly in this market, and applicants would be better off renting until they have a steadier job where the risk of being relocated is eliminated.
- Mortgage companies have tightened lending restrictions dramatically, usually requiring 20 to 30% down, as well as a credit score above 620.
Anything below means a higher interest rate as well as a higher down payment.
If an applicant's credit score is lower than 620, it would be much more costly for them to purchase a home.
For these applicants, renting is much more inexpensive.
- Many people enjoy a pretty view, but don't really want to be the one out in the hot sun cutting the grass and planting the flowers.
Home maintenance and repairs can also be costly for those owning a home.
Remind them that YOU take care of things like refrigerators that stop working, or leaking roofs.
On the other hand, if you rent, chances are there will be a Property Management Company who will look after these maintenance and repairs.
- Tax breaks may not be as considerable as expected.
Depending on the interest rate received on a loan, and the applicant's tax bracket, the write ooff they receive on their taxes may not be important enough to make it a real factor when determining whether to rent or buy.
Of course, it's best to consult a tax specialist to determine this or any other tax break.
- For the last 15 years, homes have appreciated annually at about 1% when figuring in inflation.
If your applicant is looking at homeownership as a good investment, they may want to consider this fact.
- While the kind of housing crash that happened in the last several years is less likely to happen again, it's vital to educate applicants considering home ownership to consider these and other facts.
Renting offers a liberty that home ownership does not, and while owning a home is a great asset and venture, not everyone is suited for home ownership.
Millions of people are now in homes with mortgages much higher than what the house is appraised for in essence trapped, whether they wish to move or not.
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