by Dan Faires
www.danfaires.com
Ahhhh, the age old decision; "Should I rent or should I buy?" We have all asked ourselves this question at one point or another in our lives. There are many advantages to doing both. For the past several years the housing market has been fantastic, and many homeowners have profited from the increase in value. I am currently 28 years old and I was fortunate enough to have purchased my home at 26. When I tell all of my renter friends what I purchased the home for and what it's worth now; the are astonished.
However.......it has been a tremendous challenge. The costs are far higher than what most real estate agents will tell you. They don't care, they want to sell you a home, only a truly great agent will tell you what is will be like. Luckily my wife and worked with an agent who was very honest and full of integrity. (Hard to find these days I know). We pay an estimate of $2600.00 a month for our home mortgage of $254,000. Let me break it down;
$1500.00 - 1st Mortgage (includes taxes)
$500.00 - 2nd Mortgage
$200.00 - Homeowners Dues (only covers Sewer and water)
$50.00 - Homeowners insurance
$350.00 - for gas, electricity, and garbage.
You can see that the cost rise quickly and especially since that does not include cable TV, home phone, or any of the other luxuries we "need."
But home ownership is about sacrifice. My wife and I don't eat out anymore and I sold the truck that I loved to drive, it was my "big kid toy." Three years after purchasing our home we have 2 children and are in need of a bigger house. We first purchased the home for $254,000 it is now worth $350.000 and we once sell this home and roll our profit in the next home as a down payment. We will be able to purchase what's called an "upgrade home" Think of your first home as a stepping stone. Most individuals or couples can not afford their dream house right out of the gate. You need to start smaller and work your way up. That's the advantage to buying. It's an investment in your future. It's the biggest purchase most of us will undertake and done correctly, it will be the most lucrative.
If you are ready to buy a home and you are willing to make the sacrifice, you will benefit from purchasing a home and under going all of the stress that comes with it. However if you aren't ready, then renting is a very viable solution. The is nothing wrong with renting. I know several people who will be life long renters and there is absolutely nothing wrong with that. It's all about personal preference and what you are willing do. Whatever decision you choose, if you are comfortable and honest about it; then it's the right choice.
Thursday, June 21, 2007
Renting vs. Buying
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4 comments:
Oi, achei teu blog pelo google tá bem interessante gostei desse post. Quando der dá uma passada pelo meu blog, é sobre camisetas personalizadas, mostra passo a passo como criar uma camiseta personalizada bem maneira. Até mais.
Gostei muito desse post e seu blog é muito interessante, vou passar por aqui sempre =) Depois dá uma passada lá no meu site, que é sobre o CresceNet, espero que goste. O endereço dele é http://www.provedorcrescenet.com . Um abraço.
When buying a home, use term life insurance to insure the mortgage. Term life is usually cheaper than the coverage offered by the lending institution; it also gives you the power of naming the beneficiary. Bank mortgage insurance only covers the balance owing, so in time it's value goes down while charging the same original premium. Your term life policy never changes in it's value. It also offers the option of choosing a policy that converts into whole life insurance once the term has ended, usually without having to submit a new medical questionnaire. Before deciding, consult with a licensed insurance professional as well as comparing term life insurance quotes online. It's important to remember that bank mortgage insurance protects the bank's interests; term life insurance protects yours.
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