Are you still living in a rental property for yourself or your family?
In that case, you are losing money. Consider the following three ways renting can cost you money:
1. You're paying for another person's home loan installment. You are missing out on the landlord's appreciation for the property. Accounting uses the term "appreciation" to describe an asset's rise in value—or, in real estate terms, "added value" to a property. Numerous new real estate investors have become multimillionaires as a result of significant house appreciation over the past five years.
2. As opposed to homebuyers, renters cannot freeze their monthly housing costs. Naturally, a lot of people who buy homes get mortgages with interest rates that can be adjusted, so their payments go up over time. However, unlike rising rents, these payments will not increase in the long run. Consider how much more expensive an apartment is now than it was ten years ago. Today, a lease for a two-bedroom apartment in Lake Elsinore, California, costs $1,000. In 1996, when it was brand-new, the same apartment rented for $325. In 1996, homebuyers who did not refinance their mortgage enjoyed low monthly payments and no longer have to worry about rising rents.
3. Tax benefits do not apply to renters. Homeowners can deduct their property taxes. Charge allowances for revenue costs, for example, save citizens large number of dollars.
Emotional Satisfaction of Owning a Home In addition to missing out on the opportunity to earn money through real estate, renters do not enjoy the same level of contentment from owning a home as home buyers do. You won't be able to paint your walls in the colors you want from many landlords. Additionally, you won't feel like customizing the property's window treatments, and you won't have much control over the flooring. You won't feel like you're HOME as much as home owners who feel emotionally connected to their property because you can't make your personal statement.
How to Buy Your First Home The most common obstacle to homeownership is saving money for a down payment. People believe that a down payment of thousands of dollars is required. On the other hand, you can get a mortgage for a home with no down payment if you have good credit and a good job. Additionally, you can finance a portion of your closing costs and request assistance from the seller for a significant portion of your purchase costs. With the present home loan finance plans, you might be shocked to figure out the amount of a home you can manage with installments like what you right now pay in lease.
To purchase a home, you may need to travel outside of the major metropolitan areas. In Southern California, many people commute because of this. In outlying areas, affordable housing costs much less. Be that as it may, so do the rents. You could purchase a Wildomar home for $500,000 if you rent an apartment in Los Angeles for $2,300 per month. Our daughter just bought a house in December 2005; her mortgage payment for the brand-new home, which has 3,000 square feet, is less than $2,300. She will pay even less than if she rented a small apartment closer to downtown Los Angeles because of her tax savings. If these amounts sound too high to you, check your neighborhood. It's possible that your rent is just $1,000 per month, and houses cost less than $200,000. Find out how much you can afford by speaking with a mortgage loan officer.
If you're renting, buying your own home should be one of your top priorities.