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Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Yes, even in the current hot real estate market.

Consolidate Student Loans Renting - Advantages

Build versus Buy Checklist by Jacques du Toit Jacques du Toit of the Absa Group, looks at what factors you should consider when deciding whether to build a new house or buy an existing home. This is the last of a series of three articles on building versus buying a house. Previously we looked at the historical trends in new and existing housing in South Africa, and at an overview of the advantages and disadvantages of building as opposed to buying a home.

Home Equity Loans Renting can have a few advantages depending on the part of the country you live in. The primary advantage is your monthly rent payment may be less than an equivalent mortgage. A secondary advantage is the fact that maintenance and improvements to the property are the responsibility of the landlord. Still, these advantages pale in comparison to the disadvantages of renting.

Moving out of home is expensive. There are upfront fees, as well as the ongoing bills and living expenses. Upfront costs This will depend on how much your rent is and what you need to buy. You will have to pay a deposit, which is normally four weeksa rent. Then you have to pay rent in advance, which again is normally four weeks. Thata s eight weeksa rent you have to fork out before you can start thinking about replacing the curtains!

Home Equity Loan Rates Renting - Disadvantages

Can you buy your dream home Find out just how much you can afford! Refinance Breakeven Should you refinance your mortgage Use this calculator to determine when you will breakeven! Rent vs. Buy Are you better off buying your home, or should you continue to rent Refinance Interest Savings Use this calculator to see how much interest you can save by refinancing your mortgage!

Homeowner Loans The disadvantages of renting are significant. If you have any opportunity to purchase a home or condominium, it almost always makes sense to do so.

buy something if you are better off renting or borrowing it. For instance, use the library instead of buying books and rent DVDs instead of buying your own copies

Equity Loan Rates The biggest disadvantage of renting is the loss of value. Assume you rent a residence for $1,000 a month and you live in the residence for two years. You will have paid a total of $24,000 in rent, a pure expenditure. The $24,000 is simply gone and you will have nothing to show for it other than the time you spent in the home. Compare this to what your landlord has gained.

Home buying tips for the first time home buyers and advice on what questions to ask when buying a home Credit.PrivacyMatters.com

Student Consolidation Loans Rent payments are closely aligned with a landlord's mortgage payment. Using the above example, lets assume your $1,000 rent exactly equals the mortgage payment. For two years, you have indirectly paid the landlord's mortgage, helping them build equity in the house by paying down the loan. In addition, the landlord has benefited from the appreciation of the property.

Second Mortgages By appreciation, I simply mean the amount of increase in the value of the house. If the rental appreciated $20,000 in two years, the landlord has received a windfall. They may have seen a gain of $24,000 in appreciation and payments lowering the mortgage. As a renter, you have made this all possible. The landlord no doubt would like to thank you.

Federal Consolidation Loan Now, what would have happened if you had purchased a similar home with similar financial figures? You would have seen an increase in YOUR wealth of $24,000, not the landlord's wealth. If you renting, these figures should make your teeth grind.

Equity Loan If you are renting, you should be out shopping for your own property. After all, isn't it time to make your money work for you, not a landlord?

Refinancing With Bad Credit Raynor James is with FSBOAmerica.org - sell your home online. Sellers list your home for free the first month.

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