If you are paying $2000 or more in rent at this time why would you pass up the opportunity for a permanent investment and pay less for a mortgage?

Asked by Mary Gutierrez, Chicago, IL Wed Sep 25, 2013

I have several rental clients who can't seem to believe that they will save money if they purchase the right home at the right price ie within there budget.

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9
Howie Andron, Agent, Chicago, IL
Thu Sep 26, 2013
Perhaps they do not want to commit to a "permanent investment"
1 vote
Matt Hoyt, Agent, Highland Park, IL
Wed Sep 25, 2013
In this recovering market, many people have poor credit, trouble getting financing, no down payment or not enough down payment. But they do have the cash to pay high rent. Anybody with the credit score and down payment is buying now as they are in position to capture an appreciating market.
1 vote
Daniel Mirea, Agent, Chicago, IL
Wed Sep 25, 2013
Maybe they don't qualify for a loan!
1 vote
Bill J Delig…, Agent, Naperville, IL
Wed Sep 25, 2013
Educate your clients and have them prequalified by a Lender. Feel free to contact me should you need any assistance.
Web Reference:  http://www.BJDLOANS.com
1 vote
Matt Laricy, Agent, Chicago, IL
Wed Sep 25, 2013
Probably because they dont have down payment money.
1 vote
Sari Levy, Agent, Addison, IL
Wed Sep 25, 2013
Because they plan on moving in 5 years or less or they don't have the down payment or they can't get a mortgage or they don't want the headache of owning a home.
Web Reference:  http://lucidrealty.com
1 vote
Steve Burgess, , San Juan Capistrano, CA
Fri Oct 24, 2014
Yes it is true that investing in a purchasing property, can be a smart idea. Where it not only helps in saving money from future of view, but also works well in saving excess expenditure.
0 votes
Noel Christo…, Agent, Chicago, IL
Thu Oct 23, 2014
It also depends on where you live, how much down payment you can put down, and what the real estate taxes are on the home you want to buy. If you want to live closer to the city there is no way you can get a $2000 mortgage payment. If you are not putting down 20%, it will be very likely you are going to be paying a few hundred dollars a month in mortgage insurance. Add all of this plus the maintenance of the home, some times renting is a better option. As well, if you are not planning owning the home for at least 7 years, many would advise that it is not a great financial decision. How different is it to from renting when you pay interest, taxes, and mortgage insurance and don't build much equity for the first 7 years.

With the rise of the professional landlord, many are able to find a home to rent without all the headaches and risks of owning. They find the freedom to move for a job or family much easier.

It is all a matter of ones situation financially and with their job.
0 votes
Kevin Bigone…, Agent, Chicago, IL
Mon Jan 20, 2014
Depends on how solid your job is. If you dont think you will be in the city or are thinking about moving you would not want such a commitment
0 votes
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