Is Renting Better Than Buying, In This Economy?

Copyright © 2006-2009 Vasrue.com, All Rights Reserved
Written by: Mark Felder

With the real estate market changing dramatically in the past few years and some regional markets more than doubling in property value, is it a good time to buy property? Consider the factors: real estate has increased in value while interest rates have dropped to record lows.

But real estate is like any other investment. If you look at the long-term picture, you can still expect to earn a substantial profit. Historically, real estate has been a strong, relatively safe long-term investment. Are you planning to relocate soon, or can you commit to living in the property for the next decade? Owning is ideal for those individuals or families who plan to stay in the same location for at least ten years. After all, you're paying a large sum upfront, which includes your down payment, points, appraisal and application fees. These fees are typically recovered three or more years after purchase.

Your next consideration is asset appreciation. While payments are steep at the outset, topped with homeowners' insurance, maintenance, repairs and any renovations you're planning to make, you should still earn an average annual return of three percent. In ten years, your home could be worth 30 percent more than you paid today. While rental rates increase each year, your home will remain the same.

Next, understand the tax ramifications of ownership. These vary based on your unique situation. Yet most homeowners gain substantial savings as a result of mortgage interest and property tax write-offs. These savings move their payment closer to the rental rates.

Finally, research your area. Are you in an over-inflated region? Do real estate professionals feel prices are set to drop in the next few months? Get a few opinions and balance your options.

Net-net, how long will you live in the house? Property investing is not for the day trader. It's a long-term investment that can still pay off quite well.

About The Author:

Copyright (c) 2008 http://www.Vasrue.com, All Rights Reserved.

Mark Felder writes about Real-Estate for the Vasrue website. Articles are published weekly on Travel, Personal Finance, E-business, Credit and a host of other great topics. All Vasrue articles are available to other webmasters through RSS feeds. Visit the Vasrue.com website often, to learn something new.

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Is Renting Better Than Buying, In This Economy? 
Copyright © 2006-2009 Vasrue.com, All Rights Reserved 
Written by: Mark Felder

With the real estate market changing dramatically in the past few years and some regional markets more than doubling in property value, is it a good time to buy property? Consider the factors: real estate has increased in value while interest rates have dropped to record lows.

But real estate is like any other investment. If you look at the long-term picture, you can still expect to earn a substantial profit. Historically, real estate has been a strong, relatively safe long-term investment. Are you planning to relocate soon, or can you commit to living in the property for the next decade? Owning is ideal for those individuals or families who plan to stay in the same location for at least ten years. After all, you're paying a large sum upfront, which includes your down payment, points, appraisal and application fees. These fees are typically recovered three or more years after purchase.

Your next consideration is asset appreciation. While payments are steep at the outset, topped with homeowners' insurance, maintenance, repairs and any renovations you're planning to make, you should still earn an average annual return of three percent. In ten years, your home could be worth 30 percent more than you paid today. While rental rates increase each year, your home will remain the same.

Next, understand the tax ramifications of ownership. These vary based on your unique situation. Yet most homeowners gain substantial savings as a result of mortgage interest and property tax write-offs. These savings move their payment closer to the rental rates.

Finally, research your area. Are you in an over-inflated region? Do real estate professionals feel prices are set to drop in the next few months? Get a few opinions and balance your options.

Net-net, how long will you live in the house? Property investing is not for the day trader. It's a long-term investment that can still pay off quite well.

About The Author:

Mark Felder writes about <a href=http://articles.vasrue.com/realestate.php target=_blank>Real-Estate</a> for the Vasrue website. Articles are published weekly on Travel, <a href=http://articles.vasrue.com/finance.php target=_blank>Personal Finance</a>, E-business, Credit and a host of other great topics. All Vasrue articles are available to other webmasters through RSS feeds. Visit the Vasrue.com website often, to learn something new.

Read more articles written by: <a href="http://www.thephantomwriters.com/recent/author/mark-felder.html" target="_blank">Mark Felder</a>

TEXT Article Copy-And-Paste

Is Renting Better Than Buying, In This Economy?
Copyright © 2006-2009 Vasrue.com, All Rights Reserved
Written by: Mark Felder

With the real estate market changing dramatically in the past few
years and some regional markets more than doubling in property
value, is it a good time to buy property? Consider the factors:
real estate has increased in value while interest rates have
dropped to record lows.

But real estate is like any other investment. If you look at the
long-term picture, you can still expect to earn a substantial
profit. Historically, real estate has been a strong, relatively
safe long-term investment. Are you planning to relocate soon, or
can you commit to living in the property for the next decade?
Owning is ideal for those individuals or families who plan to
stay in the same location for at least ten years. After all,
you're paying a large sum upfront, which includes your down
payment, points, appraisal and application fees. These fees are
typically recovered three or more years after purchase.

Your next consideration is asset appreciation. While payments are
steep at the outset, topped with homeowners' insurance,
maintenance, repairs and any renovations you're planning to
make, you should still earn an average annual return of three
percent. In ten years, your home could be worth 30 percent more
than you paid today. While rental rates increase each year, your
home will remain the same.

Next, understand the tax ramifications of ownership. These vary
based on your unique situation. Yet most homeowners gain
substantial savings as a result of mortgage interest and property
tax write-offs. These savings move their payment closer to the
rental rates.

Finally, research your area. Are you in an over-inflated region?
Do real estate professionals feel prices are set to drop in the
next few months? Get a few opinions and balance your options.

Net-net, how long will you live in the house? Property investing
is not for the day trader. It's a long-term investment that can
still pay off quite well.

============================================================
Copyright (c) 2008 http://www.Vasrue.com, All Rights Reserved.

Mark Felder writes about Real-Estate for the Vasrue website.
Articles are published weekly on Travel, Personal Finance, 
E-business, Credit and a host of other great topics. All 
Vasrue articles are available to other webmasters through 
RSS feeds. Visit the Vasrue.com website often, to learn 
something new at: http://articles.vasrue.com/ ============================================================

Read More Articles From Mark Felder:
http://www.thephantomwriters.com/recent/author/mark-felder.html

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