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What do people buy house and then pay mortgages if they can just rent a house?
What do people buy house and then pay mortgages if they can just rent a house?
great answers guys, thanx
When you buy a house and have a mortgage you can deduct the interest from your taxes and a part of your payment goes to ownership which can be sold when you want to move to make you richer. In the old days you could almost count on your property value going up all by itself so merely owning the house would increase your wealth. When you pay rent all of the money is never seen again. Plus when you own you make all the decisions!
When Is It A Good Time To Buy A House?
Properties prices have crashed and possibly at lowest point in last 10 years and therefore, experts believe now is a good time to buy. Because the saving you will make on a bigger property will be higher than loss you make on selling your house cheaper. Experts reckon now is a good time to buy your ideal home. Experts will tell you a few years later that I predicted the right time to buy properties in 2010.
Property investors are snapping up cheaper properties. Prices over next 5 to 7 years will be increasing and no doubt so will rents of their property. This makes the returns even better.
Investors are able to fix mortgages for long term. This gives them greater security knowing that their mortgage payment will be a fixed amount and rents will be increase over the term.
Residential buyers are forced to rent because of tough lending conditions. Naturally this high demand pushes up rental prices as a result of high demand and fewer supply. Landlord can charge a higher rent. The landlord has final say on which tenant to choose but, naturally if all checks are cleared he would pick the tenant who has offered to pay most amount of rent. Hopefully this explains how rents can go up in a falling market however; the rents can also rise in a bullish market. Let us explain.
In a rising market the rents are charge based on a percentage of property valuation. Majority of landlords want to sell their properties in a rising market. Tenants who can not buy want to rent the property and make high rent offers.
In a recession there are many opportuities. Depending on whether you wish to benefit from these opportunities is up to you.
If you are thinking about retiring then rising rent is not a good news for you because pensions are going down and cost of living is rising.
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