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RENTING VERSUS BUYING
[Who qualifies for discount from HUD homes]   [Tips for buying HUD Homes]

The decision to be a home owner is a major undertaking. It demands a huge amount of money and insurances. There are real differences as to the location of the home when it comes to paying city maintenance and repairs for street and sewer services, not to mention roads, curbs and sidewalks near your home. Another important fact is; when your home is located on the corner of the block these expenses are almost doubled.

But there are advantages that help us overlook these annual or ‘sometime’ expenses when they occur. Notice the topics above to see the differences in owning and renting.

You may have a desire to buy and you may even have the cash or credit to establish a permanent home in a good location, but you need a good understanding of how to work with the government policies that keep it a real investment.

If you look at it as a business with the city and state financial departments, you may be a reasonable candidate for owning and making a decent investment.
It is always a good idea to be well educated about every aspect of being a home owner because it is a maze of paperwork and agency services which are all separate one from another and it can get very confusing as to ‘who’ is required to do ‘what’. This is why you need good help and a deep knowledge of real estate and financial strategies.

Remember, you are an investor in a private business of owning and maintaining a private dwelling and you do not have full knowledge of every aspect and the requirements to ensure its annual increase of value.

The first thing to do to ensure the success of all the aforementioned, is to have a team of honest people you can trust who are well informed in this kind of business venture, who can keep you on a schedule of calendar events when certain actions must be taken to maintain timely payments, tax assessments, insurance, maintenance,( H.O.A. requirements, when applicable), upgrades and proper maintenance. These principles of homeownership are to be taken very seriously, if you are to be successful as a home owner. The alternative is to rent.

Get control of your financial intentions
Renting is always a sure way to help the owner be successful in his business of leasing you his home. It also is the surest way to keep you from saving that much money per month and no tax deduction, (even though some homes which are used for businesses, some things are deductable, but you must consult an accountant to know what they are).

So how much money do you make? And how much do you pay for rent?.How much do you budget and how much do you invest? What is your credit rating? How well do you manage your money?

All these questions are important to those who really desire to get away from renting.

Another thing to consider is the economy. How well can you foresee the current trend changes and do you understand the politics of government regulation. Can you make the decision to change course in a financial matter before the stock markets wipes you out?

Of course, these are serious questions and you should be aware of how a citizen needs to be informed of these matters in order to be successful in owning a home, a business or any other business venture no matter what it is.

What is evident here, is that, one must have a good education of finances, real estate, taxes, government policies and regulation, city building codes and restrictions and be in good standing with the credit bureau and/or have mega-bucks to invest through an agency, before he is a success in buying a home and keeping it in “appreciation status” for as long as he owns it. Then it truly is an investment in which he can make tax free money on, and finance other projects for family financial growth.

That’s The Power Of Leverage
After a while, the value of your home increases. This is where you begin to be successful as a financial wizard who knows how to take advantage of the government tax system and policies because you can borrow against it and use the money for whatever. That money is tax-free, and the interest on that money is tax deductible. Now you can deduct the interest on your auto payment because you own your own home.

People have used this method to pay for their children’s college, or make a down payment on a second home or, investment. Future aspects allow you to borrow against the house for tax-free retirement income.

If you sell that same home for $1,000,000 that you paid $600,000 for, you can have the gain tax-free, up to $500,000 for a married couple. With this personal real estate transaction, the gains have become a no tax income and this kind of investment is the only one that has these types of advantages. You may want to look into these principles of tax free gains for your retirement fund.

It’s always the same slogan it seems, but the best time to consider buying is now. That is, after you get a team of professionals who can get you into the stream of good financial standing and then help you find a desirable property.

Always take first things first and you’ll be able to have a better understanding of how the real estate system is really an agency that directs you to the best property investment for your needs and teach you how to turn it into a tax free money maker; after all, that’s what we do!

Renting versus buying
Buying Renting

Tax write-off Not a tax deduction
Housing expense can never go up Rent can increase at any time
Can make physical change to your house Need permission to make changes
Builds equity as home increases in value Can get evicted
Not temporary, actually a home Always temporary

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