Manville NJ Homes For Sale by Carol Kronmaier: April 2011

REAL ESTATE 101 - To Buy or Rent?

Since this is a reblog, I have disabled comments, which I always do on reblogs. If you would like to leave a comment, click on the link below and leave your comment with the original author who did all the work on this post and deserves your support with your comments.

Thinking

You've heard it a million times from friends, family, relatives, colleagues and even people you don't know: "When you rent you're throwing your money away!" Very true.  And the longer you rent, the higher the rent rate becomes and you'll throw more and more of your hard-earned dollars away.

Here's an example.  If you're paying $700 a month for rent and you do so for the next 10 years you will have spent $84,000 and have absolutely nothing to show for it.  And if you paid that much for 25 years - a common mortgage period  - you'll have shelled out $200,000 and still have nothing! If rents went up over that time frame you would have paid much more.  Maybe it's time to consider the benefits of having a home of your own.

Money Drain

With today's low interest rates owning your home is more attractive then ever.  It's now possible that your hard earned money could go directly to paying for your own home rather than paying your landlords mortgage.

Buying your home makes sound financial sense and it's almost impossible to find one good reason why it's not a good move. Beyond having your own place, there are other benefits.

 

  • Increase in home prices mean increase equity for you - like putting money in a savings account.
  • Buying a home is a very effective way of saving regularly for 25 years.  We all know saving money isn't easy, but each mortgage payment is, in reality, a little bit of money put away for the future.
  • Mortgage insurance is relatively inexpensive and very easy to obtain.  If the home owner dies before the mortgage is paid the insurance pays off the balance of the principal therefore ensuring that your family will be left with a home - and without debt.
  • If you are 30 now and purchase your first home you will be mortgage free by the time you're 55 (or less!)
  • You'll also have a home worth thousands of dollars that you own free and clear and therefore you'll be more financially independent later in life.
  • The value of homes over the past 25 years have continued to increase, and most likely will for the next 25 years.  The home you buy today for $200,000 could conceivably be worth $400,000 or more when your mortgage is paid.  it's a sound investment.
  • Owning your own home allows you to set down roots and get involved in your community.  if there are children in your life, it allows them to make friends in the neighbourhood.  Remember where you met your oldest and dearest friends?
  • Additionally, there is real sense of security and personal pride that comes with owning your home.  Imagine choosing paint colours, or adding a deck, or remodelling a kitchen the way you want, not the way your landlord decides.
  • With many types of investments you have to pay capital gains tax on any money you make.  However, on your family home there are no taxes payable as its value increases.  You keep the money your investment makes.
Home
Simply stated one of the best investments you can make is in a home of your own.  Home prices have traditionally beaten inflation thereby assuring you are in the money.

And, best of all, you really will have a place to call "HOME."

 

Remember, the more you know about factors affecting real estate transactions, the wiser your purchase or sale will be!

 

Comment balloon 0 commentsCarol Faaland-Kronmaier • April 26 2011 07:38PM
REAL ESTATE 101 - To Buy or Rent?
share
Since this is a reblog, I have disabled comments, which I always do on reblogs. If you would like to leave a comment, click on the link below and leave your comment with the original author who did all the work on this post and deserves your… more
So, Your Parents Are Selling the House You Grew Up In…
share
This is a reblog, and I always disable comments on reblogs. If you would like to leave a comment, click on the link below and leave your comment with Karen who did all the work on this post and deserves your support with your comments. So, your… more
How to Compete with Foreclosures
share
Since this is a reblog, I have disabled comments, which I will always do on reblogs. If you would like to leave a comment, click on the link below and leave your comment with the original author who did all the work on this post and deserves… more
To FSBO Or Not To FSBO In Manville, NJ
share
To FSBO or Not To FSBO in Manville, NJ Homeowners who would rather have the whole proceed of the home sale for themselves are more inclined to sell their property on their own. Also known as FSBO (For Sale By Owner) is not a new-age trend; it… more
Short Sale Investing Guidleines In Manville, NJ for Both a Buyer and…
share
Short Sale Investing Guidelines in Manville, NJ For Both a Buyer and a Homeowner The cost of maintaining a real estate property is indeed treated an expense that must be spread over the asset's useful life even if it depreciates. In real… more
Real Estate Market Recap of Manville, NJ, April 2011
share
This is a Real Estate Market Recap of Manville, NJ Closed Sales Eight new happy homeowners in Manville since January 1st 2011: 321 Boesel Ave: $134000/$121145 (final listed price/sold price) 151 S. 13th Ave: $135000/… more
Buying a Home in Manville, NJ While Avoiding Costly Mistakes
share
Buying a Home in Manville, NJ While Avoiding Costly Mistakes! Don't miss these simple steps when looking for your new home. Take the time to consider the following and you will save yourself thousands. Keeping a clear head will also… more
Sell Your Home Quickly in Manville NJ
share
Sell your home quickly in Manville, NJ If your home has been for sale for more than 100 days you're probably tired of looking at the for-sale sign in your front yard. If you want to sell your property now and get on with your life, pay close… more