FinanceDogma – Finance, loans, creditcard and mortgages

June 16, 2009

Mortgage

Filed under: Mortgage — Tags: , , — admin @ 11:51 am

Everyone’s talking about the housing market these days. I don’t have a mortgage or even own a house yet; I rent. Lots of people are choosing to rent now. It’s cheaper on a lot of people—especially families—and all of a sudden there are better deals to entice more people to rent, the number of sitting tenants has increased dramatically over the last year or so.

On the other hand, a lot more people are losing their houses. I see so many empty houses on the street with for sale signs in front. The houses are cheaper, too, for a fast property sale. The owners are trying to attract buyers that have plenty of money and want to make a cheap investment by renovating it later. Looking at the vacant homes, I can’t help but feel sorry for all the people who were facing property repossession and had to vacate. This has become a real issue for many people lately, displacing many families and disrupting even more lives.

April 7, 2009

Buying a home vs. renting a home

Filed under: Tips — Tags: , , , , , — admin @ 12:20 pm

Many people deal with the big question when it comes to housing… should I buy? Or should I rent? Both have their advantages, and both have their hard points. But either way, the major point is that you are going to have to have a place to live, so you might as well live in the place that offers the most benefits for you, right?

Buying

Buying a home can do a lot of good things for you. You can build up equity, so in a way, your monthly payments are just payments you are making to yourself because you are building up equity in your home. So, you really cannot go wrong with buying. Now, there are some cases in which buying might not be the best for you. For one, you cannot always buy a house if your credit is not good.  Second, you cannot really own a home if you do not have a good job, or some other steady source of income. If you fall behind on house payments, the results are neither good on your credit nor on your housing options. It can lead to foreclosure and a total loss of your credit.

Renting

Renting a home is the obvious alternative to buying. Renting a home though, does not have a lot of the benefits of buying. For one, your monthly payments are spent on your housing. It is money you are not investing in your future, but money you are spending NOW. Your payments do not increase your wealth as they do if you buy a home, they go to make your landlord rich. Also, you can get evicted from a rental home faster than you can when you buy. It is easier to avoid foreclosure than it is to avoid eviction, mostly because in your own home you can have pets or whatever you want, but in a rental you have to abide by certain rules.

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