Many renters feel buying a home is an impossible dream. But consider this: A landlord expects to make a profit after paying the mortgage, taxes, insurance, repairs and other expenses. His only “income” for the rental property is the rent paid by the occupants. As time goes on, and the value of the property increases, rents rise and his profit margin grows. Rents in Columbus, Ohio are expected to increase by 4 percent this year and will continue to grow in the future.
If you want more control over your housing, and more importantly a share in the profits, buying is the choice for you. If you’d prefer to continue putting money in your landlords pocket and adding to his net worth, don’t make any changes and continue renting. But before you choose, please consider the following.
The basic premise of renting: Someone buys a property whether it be a single family home or a 300 unit apartment complex. They find people to pay their mortgage for them and in return they allow those people to live there. You are always buying a house, but when you are renting you are just buying it for someone else.
Lets say that you are renting an apartment with two of your friends. All three of you pay the same amount each month for the right to live there. But when you move out, what do you have to show for your time and money spent at the apartment? I will help you with the easy ones…NOTHING! Now, lets say that you owned the house and rented 2 rooms to those friends of yours. Your roommates are paying at least 2/3 of the mortgage for you (it’s quite possible that they will actually be paying more) and YOU get to deduct all of the mortgage interest from your taxes each year! So, by keeping those same roommates you were living with before and simply having them live in YOUR home, you can reduce your tax burden and save thousands of dollars each year! No to mention you’re also building equity in that home and are on the fast track to owning it!
Inventory levels are at their highest levels ever and as a result of this prices have been easing downward. Today’s buyers not only have access to a great variety of homes for sale then any other year in history but Interest Rates are still hovering around 40-year lows. There has not been a better time to buy a home in our country’s history!
Think home prices are too high? You can buy an 2-bedroom condo in Dublin for under $100,000! As mentioned supply currently far exceeds demand, which is forcing those who need to sell to make drastic price reductions! This is exacerbated by the increased number of foreclosed and short sale homes (a short sale is a sale in which the lender agrees to accept a price below what the current owner actually owes on the home and is an effort to avoid foreclosure) currently on the market. There are many options available to buyers offering payments right around, or perhaps even less than what you are currently paying in rent.
In this current market it’s not uncommon to find a $150,000 home priced $15-$20K below market value. For those holding a winning lotto ticket or looking to buy their $1,000,000 dream home, there are motivated sellers in this price point willing to sell well below market value, some as much as $200,000 or more!
So again, if you’re thinking of buying a home there has never been a better time to do so! Rates are low, inventory levels are high, sellers are anxious and prices are down but will rebound as inventory levels begin to stabilize and the market returns to a level of equilibrium.
Think before you rent. Begin the path to financial freedom now and call us!
