The Right Way To Rent

With the economy struggling, every one is trying

their best to stay abreast of what the unknown future

holds. Most people our rethinking their once secure

futures. Many tenants are opting to downgrade their

apartments size, location, etc.. For landlords the tough

part is keeping tenants to live up to their contracts,

and keep units from becoming vacant for any extended

period. A new useful tool which may help with current

estimated comparable rental values is  www.rentometer.com

 

This site will let you know if your current rents are

competitive to the surrounding market. On the downside

these estimates do not give the ability to compare amenities.

To compare amenities, call the listed rentals and ask what

amenities are included with the rent. By being competitive

 in this tough market you will lessen your exposure to losses.

Hector Gutierrez,  Real Estate Broker, Investor, Contractor C-10 Licensed

www.wespeakrealestate.com

You can paint it any color you want.

OWING vs RENTING 

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Own:   Mortgage interest is tax deductible.   

Rent:   Rent is not tax-deductible.                                                          

–                                                                                                                                                                                                                     

Own:  Each Mortgage goes into building a nest egg for your family.

Rent:  Every rent payment disappears forever.                             

                                                                                                                       

Own: Equity in your home can be used to pay for your kids to go to college.      

Rent:  Rent check pays for your landlord’s kids for your kids to go to college.   

                                                                              

Own:  Your payments stay the same with a fix rate loan.

Rent:  Your rent increases each year.

–

Own: Your children gets to play in your yard.    

Rent: Your children play in a parking lot.     

                                     

Own: You do laundry whenever you fee like it.

Rent: You have to pay to do your laundry each week.    

                                                                                  

Own: You enjoy greater privacy.

Rent: You know your neighbor’s musical taste better than you know your neighbors.   

                                 

Own:  Pride of ownership.

Rent: Pay less monthly for housing.

For Rent

Is it wise to rent my home?  -Many millionaires have been born through the use of buying holding and eventually cashing out on their real estate holdings. In this down market, where prices and loan products have become volatile, it may pay off to rent that home rather than let it stay vacant. Renting the home insures you do not have to take in a depreciated offer at this time. Real estate traditionally does appreciate with time.  This market is where investors are looking to swallow the losers, sit and sell them when they become winners again. If you are unable to care for the property hire a professional management company that will look after your property. Keep in mind that the rental may be subject to regular maintenance and cleaning when it is time for a new tenant or is sold. 

– Moving or trading up may have  you in need of a cash down payment.  You may refinance your current home and take the necessary funds  needed for a down payment making sure that the rental house does  not leave a great negative position on your finances.

 – If you just want it out of your life than selling for a less than expected price may be the answer for you. It would bring closure and you could  move on with cash in hand.

Buying vs. Renting

HOME OWNERSHIP Should you buy or should you rent? This has become a complicated question for thousands of consumers. Not only is this question loaded with personal and lifestyle considerations but financial issues as well. For some, buying is the only sensible thing to do and for others, renting is much more convenient. Most homeowners enjoy the pride of owning such a large investment, and others enjoy having a place to call “home”. There are several advantages that go along with homeownership. Here are a few: 

Tax Breaks Federal tax laws strongly favor homeowners. Mortgage interest and property taxes are generally tax deductible on your federal return. This can in turn provide you with an enormous tax benefit.  Capital gains benefits allow the homeowner to profit without paying taxes when selling their main residence. Please consult your legal or tax expert for restrictions and application of this popular tax benefit

Ability to Borrow Against Equity As a homeowner, you can borrow against the equity in your home using either a second mortgage or a home equity line of credit. The interest of such loans may be tax deductible, regardless of how you use the money. Many homeowners use home equity loans to consolidate other high-interest loans, to make repairs and improvements, and even to fund a child’s education.

RenovationsAs a homeowner, you have almost unlimited ability to adapt your living space to suit your individual tastes and needs. You can paint, wallpaper, decorate, landscape, and even have the potential to add more rooms. The possibilities are virtually endless.

Leverage  When buying a home, you will probably use some of your own money ( your down payment) and a large amount of someone else’s (borrowed funds from your bank or other mortgage lender). If you are buying your second home, you can leverage the appreciated equity or profit into the purchase of your next home. Buying a house is a huge decision for a large investment. Your neighborhood real estate professional is a good place to start when considering a purchase of a home.