Renting Can Mean Freedom
by Michelle Carr-Crowe and the Get REsults Team, Top 5% Silicon Valley real estate agent & San Jose home selling specialist
As a real estate consultant, my job is to help people clarify their values, explore their options and make educated choices in line with those values.
Sometimes the right choice is to rent instead of own.
I'm probably one of the only real estate agents who will actively explore this option with a potential buyer. I consider it part of my service. How can a buyer truly know if ownership is better for them than tenancy if they don't look at both options?
For example, a Cupertino, Calif. home with a new monthly $3,000 mortgage is primarily comprised of interest, which is still tax-deductible. Assuming about 90% of it is interest in the first year, twelve months at $2700 is $32,400 in deductible interest. If the same property is rentable at $2000 per month, the monthly amount is less but there is no big tax deduction at the end of the year.
Sometimes the freedom of renting, knowing you can give a 30 to 60-day notice and move on if relocated can give a person peace of mind that offsets the financial benefit of the tax deduction.
Also, almost any home purchased in these times will require significant down payments (with the exception of low-down FHA and VA loans).
When you or someone you can about wants to explore ALL of the options, just call 408-252-8900.
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