Category Archives: Home Buying

homebuying renting

Is Renting Better than Buying a Home?

Owning a home is almost twice as affordable as renting in terms of monthly payments. Both have their own perks, but renters can have better financial deals when the economy is poor. Many people have made a sizable amount of money just by switching from owning to renting.

Check out the reasons why renting is better than buying a home:

The Changed Perspective of Modern People

People belonged to the earlier generations such as Baby Boomers and Generation X used to purchase a home actually to live in it. They took out a 30-year mortgage and lived in that home for the rest of their life, gaining enough equity in the process to make the purchase profitable.

However, modern people don’t spend their whole life in just one home. They move, refinance, and use the home-sale profits on luxury goods, new cars, or vacations. So, renting makes more sense for them, at least financially.

Home Buying is Risky for Low-income People

Buying a home is a gamble where you have to make monthly mortgage installments, paying utility bills and many fees related to homeownership for years to come. It’s a great risk if you don’t have a steady income and handsome savings to sustain a financial hit without downsizing.

So, renting is safer as you don’t have to deal with a volatile market or revised mortgage rates.

Renters Don’t Need to Pay Maintenance or Repair Costs

Renting an apartment means you will only have to pay the rental, utility bills, and service charge (if there’s any). You landlord will have to pay all the maintenance, repair, and renovation costs. For example, if the shower stops working, the faucet drips water, or the roof leaks, the apartment owner is responsible for fixing these things.

Taxes & Insurance Costs

Renters don’t have to pay real estate taxes, which makes renting lucrative than homeownership. The fees vary by county, but it commonly accounts a lump sum of money. Besides, the amount of property taxes increases with upsizing the houses.

Homeowners also need to maintain an insurance policy. While renters can also take an insurance coverage, it’s much cheaper than the one available for the owners.

The Down Payment

The homebuyers have to pay a sizable amount in down payment, which is usually 20%. On the other hand, renters only have to make a deposit equivalent to one month’s rent, which is significantly less than the initial costs of buying a home.

In addition, a bigger down payment means homebuyers have to pay a lower interest rate throughout the mortgage period. So, many people opt for it even if it’s financially stressful.

The main benefit of renting is that it gives your freedom and flexibility in your financial life. You can downsize, upsize, refinance, or whatever you want at the convenient time.

home buying

How Renters and Home Buyers will Fare in 2017?

The rise of mortgage rate at the end of 2016 and its volatile nature since the beginning of 2017 have changed many equations for the buyers and renters in the real estate market. The real estate database company Zillow has recently published an article predicting five factors for the people who are going to rent or have made the big decision of buying a home this year. Read More →

home buying

4 Tactics to Follow When the Inventory Is Low

Buyers and real estate agents need to raise their game when trying to find a suitable house in a tight market. When there’s an inventory shortage, it’s hard to find starter homes for sale. These situations are frustrating because you scour through neighborhoods only to realize there’s not much to look at and see yourself losing out to other buyers despite making good offers. Read More →

security deposit

Home Inspection: The Ultimate Do’s and Don’ts

It’s standard procedure for every home buyers to inspect the property they are going to purchase. But, it is difficult for an inexperienced person to figure out what aspects of the property should be considered as standard what should be ticked off as warning signs. Even if you hire a home inspector, you have to know what questions you should ask him. Let’s take a look what to expect when you’re preparing for a home inspection. Read More →

home buying

Mistakes Buyers Can’t Afford to Make in a Hot Market

It’s tough to predict a real estate market. The prices of properties and inventory often fluctuate. So, you can’t tell whether it is a buyer’s or seller’s market when you’ve finally decided to buy a new home. Read More →

new construction

Things to Consider Before Purchasing a New Construction Home

Buying a newly constructed house or a condo is a bit different from purchasing a previously-owned home. It has its perks as you can choose the exact flooring or kitchen cabinets you want, which is not possible in case of buying an existing home. However, it has some challenges too that you must handle skillfully. Read More →

new construction

The Questions You Should Ask Before Buying a New Construction

Building your home is a tremendous responsibility that also comes with a high amount of stress. Buying a new construction home is a good alternative that offers a fresh start without so much stress or responsibility.

However, it does not mean that you’ll just move into a readymade home after the builder hands you over the keys. In fact, there are many things that you need to take care of before signing the contract paper. Read More →

negotiation home buying

3 Effective Ways to Negotiate after a Home Inspection

Many would-be buyers and sellers think that the negotiation part is over after the acceptance of the offer. Wrong! In fact, it still takes place when the fund is in escrow. The home inspection may uncover many issues, which are likely to draw another round of bargains for repairs or credits. Read More →

checklist

The Essential Checklist that Every Homebuyer Needs

Many people buy homes at the beginning of the year. The rate might be even higher in 2017 given that both the interest rates and home prices may rise later in the year. Read More →

home buying

4 Tips for Buying a Second Home in Your Neighborhood

It’s not rare to fall in love with a neighborhood. Maybe you love the proximity to the farmer’s market where you regularly visit for fresh produce, the walking distance to the public transport, or the good school where your kids are studying. Either way, you just don’t want to live anywhere else. Read More →