• Buying a Home,  Renting

    The Truth Behind Renting vs. Buying a Home

      Are you doing the math these days around renting versus buying a home? Trying to decide if you can afford to buy? If so, you’ve probably Googled one of the many “rent versus buy” calculators out there to help you get a handle on your budget. True, they’re helpful, and they can also help clue you in to things like insurance expenses and property taxes, but they overlook a number of key factors in the decision. A mortgage is a surefire way to build wealth. Provided you don’t buy more home than you can truly afford, your mortgage is like a mandatory savings account. A portion of your payment…

  • Renting

    Renters Face More Cost Increases

    Rents continue to push upwards, as landlords take advantage of the hot rental market. Average effective rents climbed 3.6 percent during the second quarter compared to a year earlier, according to REIS Inc., a real estate research data firm. Rent growth has bloomed at a fast pace since 2012, hovering around a 4 percent annual growth since then. Strong technology markets like San Jose, Calif.; San Francisco; and Denver are seeing some of the largest increases in rental costs. In San Jose, rents rose 7.2 percent from the second quarter of 2014 to $1,951 a month. In San Francisco, rents rose 6.8 percent to $2,316. In the country’s most expensive…

  • Buying a Home,  Renting

    Why Renters May Be Losing Out

    Americans are better off buying than renting in the majority of places across the U.S., but the number of renters continues to be at record highs. Realtor.com® finds that it’s cheaper to buy rather than rent in 80 percent of the counties in the U.S. That’s because renters continue to face sharp price increases. A record number of renting households are leading to fewer apartment vacancies, which in turn is continuing to push rents upward, notes Jonathan Smoke, realtor.com®’s chief economist, in recent commentary at realtor.com®. But many renters – with home ownership aspirations – are struggling to break into the housing market. Indeed, 81 percent of renters indicate they…

  • Buying a Home,  Renting

    Why It Pays to Be a Home Owner

    Home owners are building net worth at a pace that is up to quadruple that of a renter. In the past 15 years, the net worth of the typical home owner has ranged between 31 and 46 times that of the net worth of the typical renter, according to the Federal Reserve’s Survey of Consumer Finances, which is based on 2013 data. On average, home owners had nearly $200,000 in net worth compared to the average $5,000 net worth of renters, according to the survey. “Home owner equity is a substantial component of home owner wealth,” Danielle Hale, research economist at the National Association of REALTORS®, writes on the association’s…

  • Credit,  Renting

    Study: Rental Payment History Can Help Boosts Credit Scores

    The addition of rental payment data to credit files may help more potential renters become home owners. Experian became the first credit reporting agency to add on-time rental payments to its database. It recently conducted an analysis to determine how the added rental information has aided consumers’ credit files.   From Renters to Home Owners: What Do Millennial Renters Want? Mining the Margins Getting to ‘Yes’ The study found that subprime and nonprime residents saw the greatest positive score impact by the addition of rental histories. Nineteen percent of the study participants that were considered subprime moved to at least one higher – or less risky – risk segment by the addition,…

  • Renting

    Renters take note: patch and repair to reclaim your full deposit

    (ARA) – Whether you’re renting a truck or paying for movers, costs can add up quickly when you’re changing residences. If you’ve been renting, the full return of your security deposit may come as sweet relief as you move from one place to the next. Because you’ve been without that healthy chunk of change since moving in to the place you’re now leaving, anything less than a full refund would be a disappointment. It would be a shame if a spot on the carpet, a broken blind or knick gave your landlord a reason to withhold a large portion, or all, of your security deposit. With a careful eye and…

  • Renting

    Renting Versus Buying: A Guide to Help You Decide

    (ARA) – Buying a home is one of the most important decisions a person can make. After years of living with parents, with college classmates in dorms, or alone in an apartment, the time may come that buying a house or condominium will improve one’s financial stability and sense of personal security. “There are advantages and disadvantages to both purchasing a home for a primary residence and renting temporary living quarters,“ says Peter Palko, adjunct instructor at Brown Mackie College — Findlay. “I recommend that buyers take a broader, more flexible approach to buying property by maintaining alignment with their short and long term personal and financial goals. Spend as…

  • Renting

    Rent vs. Buy

    Q: How do I choose between renting or buying? A: Owning a home offers tax benefits, as well as the freedom to make decisions about where you live. Homeowners, unlike renters, can secure a fixed-rate loan and lock in their monthly payments, so they can make investment plans knowing their expenses won’t change substantially. Renters are at the whim of their landlord, who can raise the rent each year without a renter’s input. Homeowners, on the other hand, are in control of their property and decide whether they allow pets, decorating, or permanent improvements.