What's the use in buying a house at a premium and saving taxes when you can rent for far cheaper save money?
Answers: Congratulations. You're one of the few people who realizes that buying a house is not always the right solution. It often is, but not always.
The key word here is "premium". If homes in your area are overvalued and you're going to have to overextend yourself to buy one, then you shouldn't do it. Wait until prices become more reasonable and/or you have the cash flow to comfortably afford it. Until, then, renting is the smart thing to do.
There are a lot of people out there who are currently losing their homes in foreclosure because they should have rented. Instead, they bought homes that they couldn't afford at the peak of the bubble and they now owe more than their homes are worth.
Rent always goes up over time. A 30 year fixed mortgage payment stays the same.
My parents paid their last payment about 10 years ago. The payment amount for their entire 30 years was about 135/month.
It costs more to buy a house, initially, but the benifits far exceed renting. Fixed payment, appreciation, equity, tax breaks, and NO LANDLORD!
If you move around a lot, you should rent. Let someone pay the taxes, repairs, etc...
If however you are going to be where you are for awhile, then you should buy. Eventually, that home will be paid for and you will be living virtually "rent-free". You'll just have taxes and upkeep. Over time, the home should (emphasis on should) rise in value...sort of a built in retirement savings.
I would suggest you buy a "fixer-upper" and fix it to the way you like it. You will earn so much more with sweat equity than you will buying something brand new & already remodeled.
In the area I live, housing prices have increased 7% a year from 1973. A house that sold for 50,000 in 1973 would be worth $435,000 today.
Here is were your augrement is faulted. If you had PAID cash (50,000) for the property in '73, you would have earned 7%. However, you would have only put down $5,000 in '73 and if you sold the house today, you would have earned 430,000 profit on your 5000 investment.
Plus your payment would never have been more then $270 pm a month vs 2,100 a month today for the same place.
When you save via a CD, you have to use 100% of your money to earn the income. With real estate you have leverage. In this case, you invest $5,000, but earn income on the full $50,000 value of the property.
Plus any income from CD are taxable. With real estate the first 250,000 to 500,000 profit is TAX FREE.
Owning is not the answer everytime. But real estate is a good investment.
'Inside Track' property nouns company...?
Does anyone know or have any experience beside this company or one similar to it? We were going to shift to London for a seminar for it but not sure if its legit. Many thanks!Answers: I don't enjoy any personal knowledge of inside track but be enormously careful if you desire to go.
A lot of these investment companies read aloud that they are just narrowly legal making you feel that they have something the others don't. See if they hold records of
how oodles people attend?
How tons sign up?
How many drop out inwardly 3 months?
How many nation really make money?
What is the typical amount of money made? They might voice that there is no "typical" if they do ask why their ad show "not typical" on them.
If it were really so flowing to make money, why aren't in attendance more millionaires?pp
Be careful, if they own to run seminars afterwards they are not making the fortune out of property just out of seminar.
Do not part next to any money or sign anything at the seminar. If there is any glorious pressure walk out!
I live surrounded by San Antonio, Tx and am currently looking to buy a home.?
What is a good solid estate company to go through? What are some companies to stay away from and why? Thanks.Answers: Start next to the better business bearau (BBB) and the chamber of commerce. They can get you started to companies minus complaints. After that you should sit down and intervies the potential realtor, if for some reason you don't close to that one, ask for another, even if they are from the same organization. You should also try to pick a realtor who does a lot of business contained by the area where on earth you are planning to live. They seem more probable to give better service.pp
Here is a document of Real Estate offices within San Antonio
http://sanantonio.cityzero.net/real-esta...