Renting doesn’t mean “throwing money away” when you are faced with a mortgage payment which is double the rent all calculation goes in vain. The financial reality depends on factors like the locality where you want a house and also on how long you are intended to stay.
Rent comparison
If you’re comparing the rent of a 2-bedroom apartment and the mortgage of a 4-bedroom detached house, what is that you really want? You can always buy a 2-bedroom condo or rent a 4-bedroom house.
The resale value
A real estate blog says We generally assume a margin of 5 to 6 % but looking at events of 2007 real estate failure. its important to dogwatch the stock markets. As the economy is in recovery stag, investment possibilities are looking greener.
Especially with increasing cross border investment commercial real estate is in news now.Rising home prices are causing some investors to pull back on their home purchases, while others are exploring new markets in search of better bargains. In order for a property to be worth the investment, it has to offer not just solid appreciation potential, but lucrative rental returns for the long term.
Renting over Purchase
The national vacancy rate for apartments decreased from 8 percent to 4.1 percent from 2009 to 2013, At the same time, the average price of an existing U.S. House has risen about 14 percent, according to real estate blog provided by Reis Inc. to a newspaper report. People are discouraged to invest in Houses as a effect of housing market disaster of 2007. A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn’t get loans during the credit crisis.In certain places, this led to lease and a rise in rents. This was seen as opportunity for the landlords to increase rents in many markets.
A house forever
There are people who are adventurous and like to try shifting and exploring new places in every 3 to 4 years. this leads to added pressure on price high, so if you don’t have a pocket and you are not ready to comprise, suggestion is to live in our old locality which is familiar to you and close to your family.
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