Buying versus renting is an age old debate. Proponents on both sides of the spectrum will argue till their blue in the face (and you’re red in the face!) to convince you. But right or wrong, this is an issue that everyone needs to face at some point in their lives.
So what’s at stake and what should you be looking for as a homeowner/potential homeowner/perpetual renter? Here are some tips to help make your decision a little easier (though also harder):
1) If there are savings to be had from buying, they’re shrinking. Over seven years it’s about 6% more expensive to buy than it was last year.
2) Buying means broker’s commissions, legal fees, closing costs, etc. Renting usually involves insurance and agent commissions.
3) Buying usually means staying put for a while, though that’s mainly true in more rural areas than high traffic areas like New York.
4) Mortgage rates are pretty good right now so buying seems promising, though that could change in the coming years.
5) Rising home prices can mean a nice payoff for buying . . . or encourage renting if you’re pushing off your purchase right now.
These tips are just the “tip” of the iceberg when it comes to this debate. In the end you need to be happy where you are and let the money come in second. So find your slice of happiness and make it your own . . . at least for now.
If you aren’t a millionaire (yet) but you’d like to at least live near some, I’m happy to tell you that there’s a thoroughly useless report that may help you. It’s the “Where do all the millionaires live?” report. So if you want to pick up stake and get close to money, here’s the list for you.
Some of the top ones are Maryland with 7.7% millionaires. I’m assuming that’s from all the politicians and lobbyists. Not that there’s anything wrong with that.
Another top spot is New Hampshire at 6.48% of the general population. With all those sprawling estates in the mountains it might be hard to get anywhere near them.
Moving out West we’ve got California with 6.04%. It’s a large state so I think you’ll find the concentration higher in one really specific spot, if you catch my drift.
Gracing the North you can see 5.74% in Washington and 5.56% in Minnesota. I guess they can afford to stay out of the cold.
Here’s where I think you can learn a good lesson. No one thinks living “close” to a millionaire does any good. Quite the opposite. You need to look for opportunity wherever you can, on fresh ground. Look around you can you’ll see it. Don’t go chasing the people who have money – chase the money!
If you want to know where the money goes in this kind of real estate market, you need to look in two places: the best and the worst. It’s that simple … and that complicated.
Basically, you can find great deals in a sure market. Find the most popular areas and make a sure fire offer. The hottest neighborhoods in terms of popularity were just released so you’ll know where to start looking. Cities like San Francisco, Phoenix, Atlanta, Las Vegas, and Seattle all show signs of being very promising.
Or you can find the cities with the worst luck. You’ll also find deals there too. You might have trouble of a different kind than in the popular places but the payout can be huge.
Really it’s a question of your perspective. Glass half full or glass half empty? Do you see challenges or do you see opportunities? Look around you and try to figure out what it is you see. And how you see it. I never stop looking at what I’m doing. Wherever I am I’m always trying to spot the best deal, find the best future for investors and homeowners, and do my part to pull this economy up.
I trust you can do the same too.
The Consumer Financial Protection Bureau – CFPB.
Waste of money? Possibly.
Keeping busy? Definitely.
For instance, they’ve written a whole guide book for the “Qualified Mortgage” that’s supposed to keep folks like you and me from being taken advantage of. It’s meant to make sure the banks play by fair rules and stick to safe lending practices.
Some of the biggest things they want prevent are loans with high fee levels (more than 3%) and APRs.
If you look at what they’re targeting and then take a quick look at the loans available on the market today, you’ll see that almost one fifth of today’s loans will be disqualified next year.
So what’s going to mean for the typical homeowner? Banks are cashing in now on tough lending practices and are hoping they can get a bunch in before they’re shut down.
Is this really the kind of economy we want to see? And is the CFPB going to show up like the gun-slinging sheriff and make it all better? Hard to believe.
But I’ll give them some time to prove themselves. If you run into any of their rules impacting your loans please leave your story here.
Hello everyone…we hope you all had a great weekend!
Today, Phoenix Wealth Builders launched a fresh new website for our Home Buyers, Sellers and Investors. Our new website gives you the opportunity to work more closely with us in the Phoenix Real Estate market.
If you are looking to buy a property in Phoenix, please feel free to fill out the form on the “Buy a Home” page. If you are looking to sell your home, then you can fill out the form on the “Sell Your Home” page.
Phoenix Wealth Builders also work with real estate investors across the United States. If you are a first time or experienced investor, there is a form for you as well on the “Investors” page. Once forms are submitted, we will do our best to get in touch with you at our earliest convenience.
Our new website is comprised of other great features, such as our PWB Blog, which provides current and relevant information about the Phoenix Real Estate Market along with general market trends across the country. You can also view our current listings!
Lastly, to show our gratitude and appreciation, our website features a FREE gift! Providing your name and email on the right side of the page enables you to claim our #1 Real Estate eBook, “15 Most Costly Mistakes in Real Estate Investing”.
This is your opportunity to work with the #1 Real Estate Solutions Company in Phoenix!
Hello Everyone, this blog is for all those people out there, who are looking to learn about real estate investing!!
Yes! I said it… REAL ESTATE INVESTING.
Justin Colby has started an all new website that provides tons of information on real estate investing – What to DO.. and What NOT to.. The website showcases weekly podcast series that will help you learn a lot about the Rehab Process, Marketing, Property Investment and the list goes on.
Here is the link to the website: THE SCIENCE OF FLIPPING
So, please comment below and tell us what do you think. See you in our next blog!
In this digital age computers sometimes have us by the … hard drive. We know what we want the thing to do but for some reason it just doesn’t want to give us the right answer. Computers are dumb that way, and smart too. Pretty frustrating.
But being a technophile I like to give my gadgets the benefit of the doubt. But lately we got pretty annoyed at a computer glitch that through the short sale industry out of whack for a little while.
Basically consumer credit reports were showing short sales as foreclosures!
Imagine that – the two things couldn’t be farther apart from each other but some dumb computer glitch (which is only now being fixed) thought they were the same.
We are sorry but the fact that short sales and foreclosures can even be said in the same breathe makes my blood boil. We don’t care how dumb the computer is there’s just no excuse for it.
We run an honest trade here people. We help banks and homeowners walk away from a bad relationship with dignity and we’re fixing the housing market in a big way. Foreclosures are for the bottom of the barrel when all means have been exhausted.
We think you should go home today and pull up your own credit report and check yourself out. If this happens again you need to bring the roof down. Let us know if you’ve suffered from this “computer error” and what you did about it.
Here we are at the end of summer and it has been a hot one. Both market and temperatures! Everyone has finished their vacations and school has started for most of the Valley.
The market continues its climb and is making a healthy recovery. It is not quite back to the height of the market but if definitely on its way.
We are now seeing fewer bank owned and short sale listings. A healthy market now exists and inventory levels are around a 3 month supply. Much better than last year as it was down to only a 1.1 month supply! Buyers were being pushed out of the market by cash laden investors. Today’s market is more balance with about the same number of sales as new listings hitting the market.
Buyers need to take advantage of the current prices and interest rates. We know prices should be higher next year and interest rates have, according to the Federal Reserve, should be much higher. There is only so much debt the Fed can buy.
Many sellers are realizing they cannot rely on a Zillow or Trulia estimate for value. Most of the evaluations are off by as much as 40%! Having a BPO(broker price opinion) completed is the best way to truly determine where your home should be priced. Let me provide you one as a courtesy. You’ll be glad you did and it will be great seeing you again!
Eddie Rosefield and I will be giving away our top secrets that helped us flip 96 deals last year in the Phoenix market. These same systems can be used accross the nation. You dont want to miss this. Register with the link that was in your email.