is it a good time to rent?

Asked by Mercedes, 92649 Thu Nov 11, 2010

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Tammy Hayes, Agent, Port Charlotte, FL
Thu Nov 11, 2010
I saw that you indicated you are a landlord so I am assuming that you mean is it a good time for you to rent out property that you already own and are not looking to rent a home instead of buying a home.

If you decide to rent the property, you want to rent it for at least 1.5 to 3 percent of the purchase price. It is necessary to make sure your rental income will cover your out of pocket expenses such as the mortgage payment, taxes, insurance, maintenance, repairs and vacancy rate. Right now, demand is higher than supply. Check with local real estate agents or call rental ads to see what the going rental rate is within the areas you are looking to purchase a property.

Try an investment calculator such as the one at goodmortage.com. Go to their web site: http://www.goodmortgage.com/Calculators/Investment_Property.html. This will give you a good idea of the financial situation if you decide to rent an investment property.

There are tax benefits in any real estate investment whether it be rental homes, apartments, vacant land, commercial buildings, industrial, shopping centers, or warehouses. Check with your local tax advisor before entering into a purchase agreement for any investment property to make sure you qualify and follow the strict requirements.

Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL tammyhayesre@gmail.com
0 votes
Stephen Day, , Vestal, NY
Thu Nov 11, 2010
Generally it is always better to buy in any area. Renting does not allow you to leverage your income dollar to the fullest, and you end up sending money down the drain. With interest rates so low, and property value low, it is the best time to buy. I was recently at the National Assoications of realtors conference in New Orleans, and the overriding opinion is that it is a great time to buy. There will be a concerted effort this year to work with banks to loosen up on the available money for buying homes. The banks have stockpiled dollars, and buyers are looking to buy. Once these two movements surface, the market will get very active.
Web Reference:  http://www.stevedayhomes.com
0 votes
Teddy Sonner, Agent, Washington, DC
Thu Nov 11, 2010
To rent instead of buying would be a good option for someone if they are uncertain of their situation.

If there is a good chance that you won't be in the home or will sell it in less than 3 years, it's probably not a good idea to buy. Please be sure you know all of the transfer costs in the buying and selling of a home. The closing costs for each can be pretty high. Please check with your realtor to get an idea of what these will be.

That being said, if you will be in the home for a longer period of time, there are things that you can take advantage of to make it worth your while in terms of being the best for your bottom line. There is the interest on your mortgage and taxes that can be deducted from your taxes. Plus as the period of your loan goes on you will likely be paying off your principle every month which building up equity or like paying yourself.

Take a good look at your situation and what you think you will do in the next few years, look at the numbers and do what's best for you.

Best regards,

Teddy
0 votes
Ruth McMaste…, Agent, NC,
Thu Nov 11, 2010
It is a good to rent or buy. My personal opinion is it is a better time to buy. If you have good credit and a little down payment, With interest rates so low, You could purchase a home, condo or townhome and let your money work for you. When you rent you are basically throwing that money away. When you buy you can at least deduct the interest from your taxes. And in this market with the values down, a lot of homes are being purchased for under tax value. Therefore, if you live in the home for any significant time, you should build some equity.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Thu Nov 11, 2010
Mercedes;
It's a great time to rent, to lease, to buy, and to sell.
Tomorrow's not a given.....so make a decision and enjoy life :).
Web Reference:  http://www.321property.com
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Thu Nov 11, 2010
I'm out of your area, but I will comment about my own experience here in NJ - I am finding that attractive rentals that are properly priced are moving quite well right now. Perhaps it is the economic uncertainty - when buyers are hesitant, particularly first time buyers, rentals tend to do pretty well.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
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