To own or rent

To own or rent

Introduction

Advantage of RentingLow move-in costs

Fixed monthly expenses

Easy to move

Location choices (may be close to work or school)

Less maintenance and repair work

Fewer responsibilities

May offer extra amenities such as a tennis court or pool

Typically less expensive than home ownership

May be able to save for other wants or needs if renting a less expensive apartment

Other expenses may be included in rent payment such as electricity, water, sewer, and/or garbage

Disadvantage of RentingSubject to terms of a lease

Rent may change with little notice

Less privacy and transient neighbors.

Restrictions on noise level, pets, etc.

Fewer opportunities to upgrade apartment such as new carpet, paint, or wallpaper.

Subject to terms of a lease

Rent may change with little notice

Less privacy and transient neighbors.

Restrictions on noise level, pets, etc.

Fewer opportunities to upgrade apartment such as new carpet, paint, or wallpaper.

How can I look for rental propertiesBulletin Boards

Classifieds

Family and Friends

Rental Guides

Rental listing websites

Rental locators

Signs

What should I look for in an apartment/rental home?What are you needs

Make a checklist

Get in touch with landlords/ADS

Make an appointment

Inspect

A man who does not think and plan long ahead will find trouble right at his door. - Confucius

COSTS OF RENTING

COSTS OF RENTING

Monthly rent

Security deposit

Utilizes: electricity, water, garbage

Renters insurance

DON’T FORGET ABOUT

Costs of renting

Utility deposit

Moving costs

Hiring movers

Advantages of owning a home

Build equity which can be borrowed against if necessary

Pride of ownership

Feel more comfortable and have more privacy

Stable mortgage payments

More room and storage

Improvement of buyer’s credit rating

Income tax deductions for property taxes and mortgage interest

Potential for property to increase in value

Free to make home improvements and have pets (items typically not allowed in rentals)

Owning a homeBENEFITS

1. A place of your own

2. An investment in your future

3. Managing your housing payment

4. Tax benefit

5. A financial stepping stone

REALITY

Ongoing costs

mobility gone

Up keeping of the home

Increased value not guaranteed

Possibility of foreclosure

Costs when buying a homeMonthly mortgage payments

Down payment (one time cost)

Closing costs (one time cost)

Utilities – electricity, water, garbage, etc.

Homeowner’s insurance/taxes

Real estate property taxes

Maintenance

Plan ahead: Saving for the downpayment

Keep in mind…..People are always paying

for a home. It’s just a

matter of whether it is

for themselves or

their landlord.

Buying a property for investment

Tips for Buying a Second HomeKnow How to Compare the Cost of Location

Even Sellers Might Need More Cash Than Expected

Plan to Have Extra Cash in Reserve

Your Credit Score Matters — a Lot

Be Prepared With a Large Down Payment

Don’t Rely on Online Valuation Tools

Work With an Agent Who Fully Understands the Area

Be Aware of Taxes

Buying Rental vs Second Home, What’s the Difference?

Investing in rental propertyADVANTAGES

You pay less tax

You may be able to deduct losses for tax purposes

You get a regular monthly income

DISADANTAGES

You take on the responsibilities and challenges of a landlord

It may be difficult and costly to sell the property later

t may be difficult to finance the purchase

Getting a renter1. First Contact

2. The Showing

3. The Application

4. Approval Process

5. Lease Signing

Maya Wariyar : mwariyar@gmail.com