Posts tagged "rent"

Renting as a Way of Life?

Dave Ramsey’s thoughts on renting long-term and not buying a home. Dave thinks it’s financially unwise in most cases and explains why.

The problem is throughout the scope of your life, you’re going to pay more every single year to be a renter. By becoming an owner, you can lock in the vast majority of your expenses and the home goes up in value.

I would not say that renting is a way of life. I will tell you a lot of people get in too big a hurry to buy, and I think renting for a period of time—longer than some people think—is a good thing. 

Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long you stay in your home.

cashcounts:

The math of renting vs. buying a home. Challenging the notion that it is always better to buy.

Great point here, BUT as with everything in MONEY & REAL ESTATE it comes down to making good principled money decisions on a case by case basis.

Don’t Take This Deal

Roman in Alaska and his wife live in half of a duplex. They pay $900 a month in rent plus $300 for utilities and services. His landlord proposed the idea of buying the duplex. As part of the deal, Roman would take on responsibility for managing it as well for two years. In return, his rent would go toward a down payment. Dave doesn’t like this plan.

Raising the Rent

Teresa in Idaho has rental property and wants to know if or when she should raise the rent. She has great renters right now. Dave advises raising the rent every year.

Created by Mortgage Refinance

A recent national survey indicates that “one in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job.” Even higher-income households would find themselves in trouble quickly: “Ten percent of survey respondents earning $100K or more a year say they would immediately miss a payment.”

bankrate:

Renters wanted: Foreclosed owners welcome

Investors are buying foreclosures and renting them out … often to families who have lost homes to foreclosure.

Given the tough economic climate, the arrangement seems to be working out pretty well for both parties involved.

Investors, both individuals and large-scale funds, are able to rent the houses because selling at a quick profit isn’t likely.

Many families, not just those who have been through foreclosure,  find that renting is the only financially viable option for them — either because they can’t sell a former home, have poor credit or fear further home price declines. And families tend to prefer a backyard to an apartment courtyard.

Investors understand that families recovering from foreclosure are a significant force in the market, and many have adjusted their requirements for eligible tenants.  A potential tenant’s credit history can help landlords determine the difference between someone caught upside down on a home or who had a temporary job loss versus someone who has a long history of late or nonpayments.

Renters should prepare a letter explaining the circumstances that led to foreclosure and how they have recovered financially.

Neighborhoods hit hard by foreclosure or big price drops are most likely to have single-family homes for rent.

When house prices stabilize, investors and investing firms may even offer plans for renters to buy the houses they occupy. That could be through “lease with option to buy” or “contract purchase” methods.

Locating an apartment can be a chore. If you know exactly what you want you’ll have to ask questions to ensure you get it. Here are 75 questions/tips to get you moving in the right direction.