Rich After Fifty

Most of the time I would suggest that you try to buy a home rather than rent.   However there are always situations where renting appears to be a better option for some people.    Check out this article below.

Words you will hear few real estate agents mutter: Not everybody should own a home! Some people aren’t cut out for home ownership, for a variety of reasons. Are you one of those who should rent and not buy? Here are some ways to tell.

Bad Credit Report

Does your credit report tank? If your FICO score is below 620, you’re not going to receive a good interest rate for a loan and, in fact, that kind of score could dump you into the hands of a predatory lender. Not a good sign.

If you want to buy with bad credit, you should work on fixing it before applying for a loan.

Four late payments is enough to disqualify you from obtaining a loan.

You can order your credit report free online.

High Debt Ratios

Lenders consider two ratios: front-end and back-end. The front-end is your mortgage payment, plus taxes and insurance divided by your monthly salary. The back-end adds your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for the loan. If you should find an unscrupulous lender that is willing to fund such a loan, you may not be able to afford to feed yourself, even if you eat dirt.

Job Instability or Relocation

How secure is your job? A high-rolling Sacramento buyer purchased a home in Midtown. His mortgage payments were $3,500 a month, which was a lot for a 25-year-old. However, that payment was affordable while this guy was earning an annual $120,000 salary. But when he lost his job, he also lost his home to foreclosure.

Is Your Job in Jeopardy?

Is your company laying off? Could you be fired and, if so, how hard would it be to get another job right away? Unemployment compensation is rarely enough to cover mortgage payments.

Relocation.

Are you likely to be transferred to another city within the next two to three years? If you had to sell due to a job transfer, your property would need to appreciate at least 10% to cover the cost of selling; otherwise, you would lose money on the sale. When you buy a home, you should plan to stay put for a while.

Maintenance Issues

All homes require upkeep and maintenance. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers can not afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home.

When Renting Costs Considerably Less

If your mortgage payment would be triple the amount (or more) you would pay for rent, it might not make financial sense for you to buy. For example, if it would cost you $2,000 a month to rent what would cost you $6,000 per month to own, does it make sense to pay $48,000 a year more to own a home?

If you are in a 30% tax bracket, you might not come close to recouping the difference you paid. Say your deductible expenses are $5,000 a month; 30% of that is only $1,500, which would be your true tax savings per month. Would you spend $6,000 to save $1,500? For more information, please consult a tax accountant or CPA.

At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Leave a comment below of what your thoughts are on the article.

If you get to the end of this video without chuckling, cracking a smile or having to stifle a laugh… maybe you are very depressed & maybe you need some support… If you had a bad day this video will defiantly give you something to laugh about.  This guy is hilarious as he makes a sales pitch for you to rent storage space from him to store …your precious stuff..,

I found this video funny but also interesting because I found it amazing to see how many views he had on his site… & it was outlandish to see what he had in his storage space….I can see storage spaces are the next great real estate investment it just goes to show that there is a need for all kinds of rentals.  If you found this video funny drop me a line below…if you think it wasn’t funny, drop me a line below… I love the feedback.

Is RENT TO OWN for you?

1. Do you have an outstanding Tax account?

2. Have you recently separated but are not yet divorced? Or maybe you are recently divorced?

3. Have you started a new business and it has not been in business for 3 yrs or more?

4. Did you loose your Job & get behind in your bills and you are now back to work full time?

5. Were you young when you messed up your credit & now you are older & more responsible, you are now trying to fix it?

6. Have you just not saved enough money for a down payment to satisfy the banks and you are working full time with a good income?

7. You have never had a credit card or loan or not had credit for several years & your credit history says you don’t exist?

8. You are new to Canada & have never had credit in Canada and you are working full time?

9. Have you ever gone bankrupt and are working full time now or have started another business?

10. Has your identity ever been stolen?

Have you taken control of your debt and are you working to raise your credit score? Have you started the divorce proceedings? Is your business making money?

Are the banks still unwilling to give you a mortgage? Are you 1 – 5 years away from getting a mortgage? Do you want to OWN & move into YOUR OWN HOME NOW?

We can help. Yes you do have to fill out an application to qualify for our Rent to Own Program.

Yes you do have to have a deposit up front. Usually 3 to 5%

Yes the deposit will be applied towards your future down payment provided all prior rent is paid up to date at the time of purchase.

Yes you do need to be working full time.

Yes you do need to submit a credit score & credit history.

Yes we will help you get your credit score & credit history.

Yes part of your rent will be credited towards your future down payment provided all prior rent is paid up to date at the time of purchase.

We have over 20 families in our Rent to Own Program in New Brunswick and would love to help you and your family become home owners. Our Rent to Own Program has been active in New Brunswick for 3 years. If you are tired of seeing all your rent money disappear into the landlord’s pocket and you are ready to be homeowners CALL NOW! CALL NOW! Or Visit us on KIJIJI Canada Theode Kasper 506 -999-3514 or Jeanette 1-877-238-6865