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What is a Contingency?

  In my last blog I discussed what Pending means in Real Estate and I stated:   Anytime I say Pending, it means the house is under contract. Either with a contingency or not, the house is more than likely going to another buyer. It's just a matter of time until it closes and the new homeowner will be moving in. So what is a contingency?  Well a contingency in a contract is anything that must be first met to allow the sale to continue in the manner in which the contract was written. Most contracts have standard contingencies to include a home inspection, a financial contingency and an appraisal contingency. Other contingencies could include a home sale.  Home Inspection Contingency: This contingency allows the buyer to preform a home inspection (all home inspectors in the state of Virginia must have a license) and the buyer has the opportunity to ask for repairs in order for the contract to move forward. Sellers at this time can a couple of things. Repair all items Repair some it

5 Reasons Buying a Home is Better Than Renting!


Purchasing a home offers amazing financial benefits. Renting a home offers amazing financial benefits for the owner of the property you are renting from. Keep that in mind the next time you think about staying in your rental.

1. You Are Paying For A Home Regardless if You Rent or Buy
   
Some will argue renting eliminates the costs of property taxes and home repairs. All renters should realize that all the expenses your landlord must incur (property taxes, repairs, insurance and etc.) are rolled into your rent anyway along with profit margin.

2.  Home Ownership Is a Form of Forced Savings

Studies have shown homeowners have a net worth 44X times higher than a renter. It was recently estimated that a family buying a average home this past January could build more than $40,000 in family wealth in the next five years.

3. Owning Is a Hedge Against Inflation

Home values and rents tend to go up at or higher than the rate of inflation. When you own, your home's value will protect you against inflation.

4. There Are Still Substantial Tax Benefits in Owning

The new tax reform bill puts limits on some deductions on certain homes but the mortgage interest deduction is not the main source of these gains.

5. Housing Is Typically the One Leveraged Investment Available

Homeownership allows homeowners to amplify any appreciation on the value of their homes by a leverage factor. A 20% downpayment results in a leverage factor of 5, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you put down 10% , your leverage factor is a 10.

Bottom Line:

From a financial standpoint, owning a home is and will always be better than renting.





Comments

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  3. Wonderful Blog!
    I really appreciate your efforts of writing and sharing such a commendable blog. It is true that renting cost you much and sometimes paying home rent can be a big problem. Having your own home can offer great financial benefits. So, avoid renting and buy your own small home. If you are looking to buy a home in Winnipeg, Manitoba then contact Element Realty Inc. and avail the best deals.

    ReplyDelete

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