Upload
maya-wariyar
View
95
Download
1
Embed Size (px)
Citation preview
To own or rent
Introduction
Advantage of RentingLow move-in costs
Fixed monthly expenses
Easy to move
Location choices (may be close to work or school)
Less maintenance and repair work
Fewer responsibilities
May offer extra amenities such as a tennis court or pool
Typically less expensive than home ownership
May be able to save for other wants or needs if renting a less expensive apartment
Other expenses may be included in rent payment such as electricity, water, sewer, and/or garbage
Disadvantage of RentingSubject to terms of a lease
Rent may change with little notice
Less privacy and transient neighbors.
Restrictions on noise level, pets, etc.
Fewer opportunities to upgrade apartment such as new carpet, paint, or wallpaper.
Subject to terms of a lease
Rent may change with little notice
Less privacy and transient neighbors.
Restrictions on noise level, pets, etc.
Fewer opportunities to upgrade apartment such as new carpet, paint, or wallpaper.
How can I look for rental propertiesBulletin Boards
Classifieds
Family and Friends
Rental Guides
Rental listing websites
Rental locators
Signs
What should I look for in an apartment/rental home?What are you needs
Make a checklist
Get in touch with landlords/ADS
Make an appointment
Inspect
A man who does not think and plan long ahead will find trouble right at his door. - Confucius
COSTS OF RENTING
COSTS OF RENTING
Monthly rent
Security deposit
Utilizes: electricity, water, garbage
Renters insurance
DON’T FORGET ABOUT
Costs of renting
Utility deposit
Moving costs
Hiring movers
Advantages of owning a home
Build equity which can be borrowed against if necessary
Pride of ownership
Feel more comfortable and have more privacy
Stable mortgage payments
More room and storage
Improvement of buyer’s credit rating
Income tax deductions for property taxes and mortgage interest
Potential for property to increase in value
Free to make home improvements and have pets (items typically not allowed in rentals)
Owning a homeBENEFITS
1. A place of your own
2. An investment in your future
3. Managing your housing payment
4. Tax benefit
5. A financial stepping stone
REALITY
Ongoing costs
mobility gone
Up keeping of the home
Increased value not guaranteed
Possibility of foreclosure
Costs when buying a homeMonthly mortgage payments
Down payment (one time cost)
Closing costs (one time cost)
Utilities – electricity, water, garbage, etc.
Homeowner’s insurance/taxes
Real estate property taxes
Maintenance
Plan ahead: Saving for the downpayment
Keep in mind…..People are always paying
for a home. It’s just a
matter of whether it is
for themselves or
their landlord.
Buying a property for investment
Tips for Buying a Second HomeKnow How to Compare the Cost of Location
Even Sellers Might Need More Cash Than Expected
Plan to Have Extra Cash in Reserve
Your Credit Score Matters — a Lot
Be Prepared With a Large Down Payment
Don’t Rely on Online Valuation Tools
Work With an Agent Who Fully Understands the Area
Be Aware of Taxes
Buying Rental vs Second Home, What’s the Difference?
Investing in rental propertyADVANTAGES
You pay less tax
You may be able to deduct losses for tax purposes
You get a regular monthly income
DISADANTAGES
You take on the responsibilities and challenges of a landlord
It may be difficult and costly to sell the property later
t may be difficult to finance the purchase
Getting a renter1. First Contact
2. The Showing
3. The Application
4. Approval Process
5. Lease Signing
Maya Wariyar : [email protected]