Investment Strategies: Should You Buy or Rent?

Renting vs buying Investment Strategies

Real estate is a big investment and as a result it’s not for everyone. For those looking to invest or who need a new home, you have the option to buy a property or rent from a landlord. From an investment perspective in today’s real estate market, is it better to rent or buy? This question gets asked a lot because the market changes and it’s confusing to keep up. Interest rates are low, and the value of real estate continues to rise. The answers people provide you will be different depending on whom you consult with.

A real estate consultant will explain when a person or family is renting a property they are paying someone else’s mortgage. When they are buying, they’re investing equity into the home.

No point is wrong, however, the decision largely depends on a lot of factors. There are three big costs associated with home ownership, which are not always considered before signing on the dotted line. As a result, home ownership is often out of reach. Millennials are specifically opting to rent a property as opposed to invest in a home.e

  1. Land Transfer Tax

The land transfer tax is a huge expense that you need to consider when purchasing a property. You can expect it to be about one and a half percent of the total cost of the home. In some areas, it can be as high as four percent, which is a very large chunk of change. It is also important to realize that you have to pay this after tax.

When it comes time to sell, you will owe about five percent of your home’s sale price in commission. You will also have to pay a lawyer for closing costs, and there are costs associated with the moving process as well. When all is said and done, you will have spent about 10 per cent of the purchase price of your home just in the buying and selling process.

  1. Ownership Expenses

When you own a home, there are operating costs associated with keeping the property in good condition. However, the biggest cost is one that you can’t see. Buying a home means putting a large majority of your money into one single property. Had it been invested elsewhere, you might see a better return on your investment.

Other costs associated with home ownership include regular maintenance. Should a water pipe burst, it will be your responsibility to fix, as well as any damage that occurs as a result. There is interest on the mortgage paid every week or month, as well as taxes on the property itself. Roof repairs are quite costly as well. Not everyone realizes it, but owning a home comes with very large expenses. One benefit to home ownership is you don’t have to pay rent. However, these large-scale maintenance costs do outweigh the cost of rent depending on the type of property you are renting.

  1. Mortgage

When you purchase a home, you’ll be required to take out a mortgage on the new property. When interest rates are low, it’s easier for property owners to meet their regular payments. Mortgages essentially allow people to purchase homes that they couldn’t afford otherwise. They set up a payment plan, and fifteen or thirty years later, they pay off their home. At this point, the house becomes their most valuable asset.

This process has changed over time. Buyers are trying to leverage their hard-earned dollars and pay back the mortgage long-term.

Most homeowners believe the price of their home will increase overtime. While that is true, the price is in line with inflation.

If you put fifteen percent down on a home, that means you are responsible for 85 per cent of the mortgage. Should the value of the home go down, the equity in your home that formed the down payment is lost. Selling your home after only a few years means you’ve paid off more interest than the mortgage itself.

The decision to buy or rent a property is not an easy decision to make, which is why it’s important to do your research and compare numbers. An online calculator can assist you in the process.

The best way to determine what is right for you to is to assess your finances and identify what your goals are; if your goals are to build equity in a home long-term, then consider purchasing a home as an investment. If you have other goals, renting will make it easier to leverage your hard-earned money on a long-term basis.

You May also Like this

Everything You Need to ...

Moving into a new house can be an overwhelming process. It can...

Decluttering
How To Declutter Before ...

Are you planning to move to a new home soon? Packing and...

Real Estate Investing
Trends of Real Estate ...

For a real estate investor, it’s essential to research what the real...

Things to Get Rid ...

Introduction. When it comes to business, there are a couple of things...

How Professional Cleaning Can ...

If you are entertaining the idea of selling your property, then it...

Usage of Virtual Data ...

Technology has indeed developed a lot and has come a long way....

How Much Time Do ...

The experience of foreclosure can send anyone into a tailspin. You worked...

Five important factors to consider before buying commercial property
Five important factors to ...

Buying real estate has always been and will continue to be a...

8 Reasons Mobile Apps are a Good Investment for Real Estate Companies
8 Reasons Mobile Apps ...

Long time back, buying/selling a property was nothing less than a battle....

5 Things Potential Home Buyers Notice When Touring A Home
5 Things Potential Home ...

When you’re selling your home, have your home staged, and begin showing...

A Guide to sell your Property: Making the Decision
A Guide to sell ...

Are you tired of looking for an answer, “Can you ?” and...

If we see from business’s perspective, those long decision-making days are totally killing. Real estate brokers and firms put of much efforts to close a deal that each day wait is nothing less than torture. However, they can actually speed up the closing process by automating the sales process. Automation of few tasks like lead generation and lead management, reply the buyers’ queries promptly and timely and track the progress of each lead will help them to leverage the sales process and close a deal far earlier than ever before. To know more how to achieve this, keep on reading. Easy lead management means faster deal closing Lead is what you need to witness success. Real estate is one such industry where lead conversation ratio is very low. The reason being is a lot of people inquire but only a handful of buys. With such a low conversion ratio, no real estate business can afford to lose a single lead. Plus, managing so many leads is also very tough. Your representatives will find it difficult to sort them out based on their interests and needs. Once you automate the lead management process, you can easily save all the data over a single place. You can quickly create a new lead, keep them posted about your deals and offers, and add customized activities with respective leads. One more thing here to notice is that there is a need to go a lot of regress follow-up in the real estate industry. You need to contact your leads again and again. With automation of sales process using CRM software, you will be able to update the follow-up details, set next follow-up date, import and export any other details related to the leads and add custom fields to them. When you are able to get all the details related to a particular lead, chances are high that you will do the right pitching and convert them into business. So, easy lead management simply indicates that you will speed up deal closing process. Simplified operations Real estate is one such industry where operations are pretty complex. Regress follow-up, huge negotiation, long client face-time, and various paperwork are some of the operations that are highly labor intensive and complex in nature. With such complex operations, it is often found that real estate agents stay engaged in all these tasks most of the time and loss focus from lead conversion. Henceforth, they witness slow, or no closing of deals. However, automation of all these tasks helps the real estate industry to set their representatives free from all these customary and tedious tasks and allow them to focus their primary function i.e. to close a deal. Better communication Though communication is one of the most important components of every business, its importance increases by manifolds in the real estate industry. You need to be in constant touch with your prospective clients regarding their concerns, requirements, and needs. If there is a loophole in your real estate business communication then chances are bleak that you will enjoy a high number of a closed deal. Email is one of the most prominent ways to do business communication. Businesses prefer to comminute via email rather than phone as it is easy, quick and act as a proof communication has happened. Email automation helps a real estate industry to send bulk emails, set reminders to send a particular email to a particle client, sync all the contacts with the email and send automatic follow-up reminders to the agents. When you have such an advanced level of communication, your agents are going to close a deal easily, promptly and profitability than ever before. Great sale support system to the clients and the team If you want to witness a surge in your deal closing number then it is very important that you provide a great support sales support system for your sales team as well as to the customers. In the wake of technology, the AI has taken a new name and it is “Sales Bots”. A product of high-end integration, sales-bots are there to nurture your leads, remind the clients and the sales team about the pending deal, alerts the salespeople about every new lead, automatically create the follow-up task sequence and notify the prospective clients about the on-going discounts on their pending deals. Even sales-bots are so efficient that they create automatic deal of existing customers and notify them in prior. When your sales team and customer get such an extensive support system, closing a deal is easy as hassle-free. There is no second opinion that the real estate industry requires some extra efforts to generate revenue. However, a simple step of automation of the sales process makes a huge difference in all aspects. So, automate the sales process and take your real-estate business at new heights.
How can you close ...

Real estate is a tough business. It takes a lot to close...

Land Contract
Contract for Deed: Land ...

What is it? A contract for a deed, also called land contract...

new home
5 Mistakes to Avoid ...

Not many people were buying homes after 2008 Economic crisis, but three...

home with pathway
Can I sell a ...

Selling a house is not an easy task especially if you want...

Pros and Cons of Increasing the Size of Your Real Estate Deals with Outside Equity Investors
Pros and Cons of ...

It is the nature of capital markets to have capital demand outstrip...

Real Estate Investing Course for Rental Property: How to Get the Most Profits
Real Estate Investing Course ...

Whatever rental property you have right now, for sure, it required years’...

How Technology Can Help Improve Your Rental Property Business
How Technology Can Help ...

Have you ever wished you could clone yourself, so you could be...

Property In Sebastopol
10 Things To Consider ...

Property investment should never be approached without proper knowledge and some research....

Are You Considering Investing In A California Ranch
Are You Considering Investing ...

If you've got the money to buy one, investing in a  ranch...

real estate buildings
Real Estate – The ...

What is the first thing that comes to your mind when it...

private villa for your stay in the peaceful land of Sosua
Why should you choose ...

Taking a gander at tourism in Sosua travel insights, we see that numerous...

Windows in Your Investment Property
4 Reasons You Need ...

Over the last 10 years, the purchase of investment properties has grown very...

Top 5 Best Real Estate Investment Ideas
Top 5 Best Real Estate Investment Ideas

Investing in real estate can be an extremely rewarding venture that can...

When is the right time to sell your luxury property
When is the right ...

The best period to seal the most profitable deal The process that...

USING CURRENT DEMOGRAPHIC AND ECONOMIC DATA
USING CURRENT DEMOGRAPHIC AND ...

Demographic data is one kind of statistical data which describes population, income,...

7 Ways to Prepare your Home for Appraisal
7 Ways to Prepare ...

So you’re selling your home or looking to re-mortgage? You’ll be looking...

Garden Decorating Tips For Spring
Garden Decorating Tips For ...

Spring is here! The sun is out and shining, and it is...

Attracting more tenants to rental property
5 Smart Strategies To ...

You’re not making money unless your rental property is occupied. If you...

7 Tips For Getting Your Mortgage Application Approved
7 Tips For Getting ...

A mortgage requires work - though the end result of owning your...

8 tips for first time property buyers
First Time Property Buyer? ...

When you’re a first time property buyer, there’s lots to learn about...

Closing Tips For First-Time Home buyers
7 Closing Tips for ...

Buying home can seem rather overwhelming than exciting and can be especially...

Things to Look For In a Home before Signing the Deed
10 Things to Look ...

Home ownership is a big deal and an equally big investment plan...

7 Tips For A Solid Rental Agreement
 7 Tips For a ...

Owning a home to use as a rental property has the potential...

Sell A House From The Outside With These Curb Appeal Tricks
Sell a House from ...

A home’s first impression is the exterior; there’s no way to avoid...

How Much Should you Charge for Your Rental Property
How Much Should you ...

Investing is always a risky opportunity, but there are different types of...

tips for home sellers
Tips for Home Sellers ...

Here’s continuously the busiest time of the yr. for precise estate sales....

4 comments

  • furtdso linopv

    Thank you, I have just been looking for info approximately this topic for a while and yours is the best I have discovered till now. But, what about the bottom line? Are you sure about the supply?

  • Google

  • hQpcyMwF3m

    Thanks for the details provided! I was locating for this details for a long time, but I wasnt able to locate a reliable source.

  • faq php script

    i prefer wall clocks with hanging pendulums because they look nice at home.,

Post your Comments

logged inYou must be to post a comment.