Some of the pros, which do not involve the dollars and cents arguments. You own it, you can make it your own, express yourself in the decor and landscaping, which you cannot do in a rental. You have a home to will to your children or charity. The money you spend each month actual goes to something you own, not something someone else owns. There is a sense of satisfaction that comes from owning your home.
Some of the cons. You have to fix the toilet yourself when it breaks. You have to pay to maintain the property, in general. Depending on how much house you buy, your actual monthly expenditures may increase. If the value of the property goes down, well we are seeing that right now, you might not be able to sell when you want to sell, assuming you want to sell.
As you can see, owning a home is not just about money. And if your parents have dreamed of buying a home and now want to fulfill that dream, this is a good time to buy. Prices are low, finance costs are low, and there is quite a bit of inventory on the market.
If you think they have not thought this through, feel free to have them call me. I have a short list of questions that will help them determine if this is the right decision for them at this time. Then you just have to trust that they are making an informed decision and support them in their final decision. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
I cannot make the decision if your parent to continue to rent or buy. They should consult with their financial adviser what is financially to their advantage. What is their motivation for purchasing a home now? They may want pride of home ownership. Homes are pricey in Los Angeles, CA. Would the monthly home purchase expenses equal or far out weigh the benefits of renting. There are a lot of things to consider. As a family pencil out:
- Financial advisers recommendations.
- Rental expenses compared to home ownership expenses.
- The amount of the down payment
- Motivation for homeowners
- Tax benefits of homeowner
- Will life quality and financial rewards of home ownership increase of diminish lifestyle.
Things your parents should consider Good Luck.
Gail Mercedes Cole
Of, course before they buy be sure to really evaluate the risks and benefits. A professional financial planner or a CPA would be a great start to get advice.
Have you consider as their family member purchase a home on their behalf allow them rent from you than making a stranger richer ? You receive annual tax benefits ?
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I applaud your parentâ€™s adventurous spirit!
In my opinion, this is a decision between want and need that should be arrived at via consultation with both a financial and tax advisor to review all the pros & cons of such a financial decision. While it's the "American Dream" for one to own their own home, the harsh reality is Medical, Disability, and/or Life insurance may be a more prudent financial move in the long-run based on current financial position (depth/type of income sources) and personal health history.
You can search in the MLS just like I do at the link below, see what's available in the neighborhood they might like, see pictures too. Email me directly if you have any questions or concerns.
Realtor Since 1996
If they can swing the payments then having a home vs. renting will allow them to not worry if rents go up. It will give them a home that they can pay off and not worry (provided their mortgage is fixed) about the worries of increasing rents.
The Carrabba Group
Keller Wiliams Hollywood Hills