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Why Rent when you can own?

By
Real Estate Agent with ReMax

real estate prices do not always go up, you need to follow a better guideline in your decision making than answering the age-old question of "Why Rent when you can own? and "renting is throwing money away!"

Here are the questions to ask yourself if home buying is right for you

  • Do you need the flexibility of renting? or can you afford to stay in your home for at least 5 years or longer?
  • Can you afford a 20% down payment?
  • Can you afford a monthly payment on a 30-year fixed mortgage?
  • ask your CPA ... Does the tax benefit of home ownership offset a potential decline in home value?
  • Have you reduced other real estate debt before you add more on this home purchase?
  • Does a fixed monthly mortgage payment for the next 15 years outweigh the likely inflation of rents during that same time (called an inflation hedge)

These are broad questions that can have many variations for each individual situation. However, it is a good foundation from which to start your home buying process.

You do not need the Real Estate boom to enjoy the many benefits of owning a home.

However, you do need to the answer the right questions of whether or not real estate ownership is right for you and your family.

Comments(1)

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Bernard King
King Associates - Lockeford, CA

Hello?  This is 2008.  Where have you been?  I am a proud renter and can buy any house I want--with the cash I saved by not sending it to a bank to make BANKERS wealthy. 

Check out these facts.  I live in a ten year old house, the largest house on the block.  My rent has gone up to $800/month.  If i bought this house TODAY, not two years ago, I would be paying about $3800/month.  Since I have lived here, I have saved the difference between my rent and projected PITI.  Two years ago at the BUBBLE peak, it would have been $5,000/month.

So here I am, my landlord is kissing my A** hoping I stay and rent while he is swimmng UNDERWATER.  Do you know many middle class people buyers or mortgage holders (not homeowners)  who can save cash $3-5,000/ month??  Do I need a Realtor?  NO! THEY ONLY represent themselves.  Realtors ONLY get paid when a deal is closed.  So they MUST represent the seller!  The ONLY person with cash at the closing table is the buyer.  The buyer has either money from a banker or cash.  So its OPM or their money.  6% goes to the talkers  who can add nothing to of VALUE TO THE HOUSE.  I have owned many houses and I believed the lie by Realtors and bankers.  UNTIL I started renting.  The owner of this house CAN NOT SELL for at least ten years.  So he MUST consider keeping ME HAPPY.  Will a mortgage company do the same?  My landlord---promptly fixes everything---he writes it off.  I don't have to write off anything, but look what I save!  A house is NOTHING more than shelter.  Its value is based on a big  lie.  If I bought any time in the past fifteen years, I would be behind where I am now financially.  The amount of property taxes  I DO NOT PAY---and the HUGE interest I DO NOT PAY--could buy TWO more similar houses.

I am GLAD I AM NOT YOU!  We can and do travel all over the world with the money we would have thrown at a banker.  Well one of the BIG FIVE D's ---the engine of Realtors just happened.

Go to the Realtor blogs--they all BRAG about "Divorce Death Destition Demise Disaster" as reasons people MUST SELL.  Guess what---"big daddy" landlord JUST DIED.  HEART ATTACK---  Too BAD SOOO SAD!  He owned dozens of houses---BUT HE CAN'T SELL ANY.  Yippee TIYO .

His spoiled brat kids just hope that someday they won't die before they have to start selling their inherited properties that are depreciating DAILY.  I know they are stealing like wolves---they are the children of Realtors.  Thats what they saw and learned from BIG DADDY LIAR

We have MORE pleasure.  OUR LAST wannabe late night TV millionaire landlord---was NASTY.  WE got even.  How?  We waited.  Mr Millionaire lost six huge custom houses.  He acted like a typical Realtor jerk - No class no upbringing,  So WE HELPED HIM.  By reporting his secret rental income to the IRS---he forgot to tell them he was a flipper.   As tenants  and taxpayers its our DUTY  to turn in tax cheats.

So he lost EVERYTHING---sports cars, nice clothes, spoiled wife, BIG CUSTOM HOUSES, and his dignity.  After six months in the county jail and hundreds of thousands of dollars in IRS liens and fines and attorney bills ---WE ARE THE WINNERS--  He is now a worker at a fast food joint--he gets all the fries he wants.  I hope he eats enough cholesterol to choke a pig.

AND Mr Millionaire Realtor ALSO lost his license to cheat and lie.  Now you knowm why Realtors are hated.  They have never worked a day in their lives as a Realtor. 

 

I promise you, I will show respect to REALTORS--- The next time I hear that a Realtor commits suicide---they are dropping like flies.  I will go to the funeral--and carry his/or her casket FOR FREE .  BURY them deep at least six feet under. 

Cremation will only pollute the fresh air.  Aw I love the smell of FRESH AIR. 

 

RS 

Dec 05, 2008 03:12 PM