You probably have seen a rent-versus-buy calculator here and there online, and you may have even used one. They are supposed to help you decide if buying a house makes financial sense for you, but do they really tell you what you need to know? Let’s take a look at how they work, and how they sometimes don’t.

To Rent Versus Buy

The idea of these calculators is to take into account all the costs of both renting and buying over a given time, to compare them and see which option is better. There are a number of criteria involved, though, and this means there will always be some guessing. How many years will you be in the home? How much will rent be up to in ten years? How high will your property taxes be? These fields will be filled in by default in most calculators, and you’ll change them as needed.

I just went to the U.S. Government’s site, ginniemae.gov to see their rent-versus-buy calculator. Their fields start (mid 2007) with an assumption of ten years in a house, a 7.5% interest rate, and 2% annual appreciation – all very conservative guesses. Here is what all of the criteria were preset at:

Your Current Monthly Rent: $750

The Price of Home: $150,000

The Down Payment: $15,000 (10%)

Term Of Loan (years): 30

Interest Rate On Loan: 7.5%

Estimated Years In The Home: 10

Annual Property Tax Rate: 1%

Annual Home Value Increase: 2%

You can change any of these. For example, property taxes are closer to 2% of property value in some areas. Over 10 years appreciation will probably be more than 2% annually (although it could well be a negative number this year and next). Hitting the “calculate” button, this is what was shown:

Home Value In Ten Years: $182,849

Loan Balance After 10 Years: $117,340

Your Equity: $65,509

Tax Savings (at 28%): $32,549

The Average Monthly Payment Over Time: Rent: $834 – Buy: $550

Total Payments Over Ten Years: Rent: $100,080 – Buy: $66,017

Your Total Savings On: Buying – $34,063

Confusing. My amortization table shows that the payment on a 30-year, 7.5% loan would be $944 per month, not $550 – and this doesn’t include mortgage insurance, property taxes or home owner’s insurance. They may take into account the tax savings, but that still doesn’t explain how they arrive at $550. There is this little note at the bottom:

“The above rent-versus-buy calculator uses the following in its calculations: homeowner’s insurance, loan costs, mortgage insurance, cost to sell the home, property tax, homeowner’s tax savings, and increases in rent. Results are estimates. “

Well, that certainly doesn’t clear things up, but it does point out some other issues, like the fact that there is no calculation at all for repair costs. Having owned several homes, I can tell you that there will be repairs and maintenance. We also don’t know if rising property taxes were taken into account. Also if you are in the 15% tax bracket (likely if you’re renting a $750 apartment), the tax savings would be about $15,000 less than calculated – a little bit of difference.

Now, even at a more reasonable 6.5% interest rate, the monthly cost of owning a $150,000 home (with taxes, insurance, and minor repairs) is a minimum $1,150 – and probably higher than that. Using the above example, this is $400 more per month than renting. My guess is they take into account the “opportunity cost” of not having that $400 per month to invest over 10 years. That might even surpass the equity gain from owning.

Buying is often a good idea, especially since you probably won’t invest that $400 monthly in extra cash flow you get from renting. But do some of your own thinking, understand what criteria are being used, and be skeptical of these rent-versus-buy calculators.



Passive Income

When you are looking for Atlanta apartments for rent, you need to be able to have as many choices as possible. There are most likely certain things that you are looking for when it comes to GA apartments for rent. These can include the number of  bedrooms and  baths in the apartment, whether or not utilities are included with the apartment, internet and cable access and laundry facilities. All of these factors figure in to the GA apartments for rent that you consider. Make sure you find out as much as you can about Atlanta apartments before you make the decision to rent. 

 

One of the first things that you need to consider when looking at Atlanta apartments is the number of  bedrooms. If you are renting the apartment just for you, you can consider how much space you need. If you are just looking for an apartment for yourself, you can rent a one bedroom or a studio apartment. If you want an apartment for a family, you may look at Atlanta apartments with two or more bedrooms. There are plenty of space opportunities when choosing GA apartments for rent. You are better off to have too much space than too little. 

 

Many GA apartments for rent come with utilities right in the lease. When you are renting Atlanta apartments, you need to be sure that you understand if the utilities are separate or if they are part of the lease. If they are part of the lease, the lease may be a bit more in the Atlanta apartments, but you might also end up saving money in the long run. 

 

Most GA apartments for rent come with satellite or cable hookup available.  If satellite TV is important for you, then you will need to look for Atlanta apartments that can offer you this service. If you need an internet connection, as most people do, then you need to find Atlanta apartments that offer access to WiFi, cable or DSL. 

 

Look for Atlanta apartments that will suit your budget and your lifestyle.  Take a look online at a guide to GA apartments for rent and find those that you like and will fit in with what you need. Many of these online guides will even show you photos of the GA apartments for rent. Once you find a few Atlanta apartments that you like, you can then start to look at them. It is best to look at the apartments beforehand before you decide to just rent. 

 

It is important that you find the right amount of space as well as amenities that are important to you when you are looking for Atlanta apartments. There are many GA apartments for rent from which to choose. Look at a guide, find one with the bedrooms and bathrooms that you need as well as extras such as utilities, cable and internet access. Once you narrow down your search, visit the apartments yourself to find the perfect place that you can call your new home. 

 



Rent Back

Sell and rent back is the best solution for people who are under debts. You can sell and then rent it back as long as you wish too. If you don’t want to relocate, you can stay in the same house as tenant. People generally sell and rent back due to job loss, migration etc. Many owners are not able to pay mortgage payments which may lead to repossession. Lenders may take possession of your house and churn out all their dues through auction.

With sell and rent back options you can stay in the same house as long as you want. These schemes bring a huge relief for hopeless property owners. Relocating is not as easy as it seems. It may be difficult for you to leave the house as you are emotionally attached to it. Just a thought about it, may be nerve-racking. And why not, you have really worked hard to buy this house.

But now you can be happy as many real estate dealers are helping those under debts. Now you can sell your house within a month and get cash quickly. Sell and rent back option releases cash quickly and allow you to stay in the same house till you desire. Such companies offer personalized short term and long term schemes to suit individual needs.

Internet has made things simpler. Many reputed companies have their own websites to help those who are in need. They offer sell and rent back, cash property sale etc on acceptable terms and conditions. Some companies also offer buy back schemes wherein they allow you to buy back the house when you are financially stable.

Sell and rent back can raise capital or avoid repossession and also allow staying in your house. You have to unlock your capital from your home to clear any debts you may have or to fund a better retirement. Sell and rent back schemes can also be a way of funding your retirement without having to sell your home.

Sell and rent back solutions can bring you mental peace and financial stability. Your deal ends in a couple of weeks without exhausting your mind in legal rigmaroles.  Such companies also cut down their valuation fees and repay all judicial expenses incurred on the deal. They purchase your house at 70%-80% of the market assessment and then rent it back on an affordable amount. Thus, if you are facing any credit crunch, you don’t have to worry as you can sell and rent back your house. The clouds of debts lift little by little once you regain your financial strength. So, remove all your worries as sell and rent back solutions will allow you to stay in your own adobe.



Sell House Quick

A real estate short sale occurs when a property owner sells their property for less than the mortgage amount owed to their lender(s). On the surface, this may seem like only the borrower benefits from such a transaction. However, that couldn’t be further from the truth. Note:  See our “Are You a Short Sale Candidate” to find out if you or someone you know are short sale candidates.

 

For discussion purposes we are going to assume a homeowner is a short sale candidate.

 

For the homeowner, a short sale makes it possible to sell their home for less than the total amount owed. The sale of the property releases the homeowner from their debts and obligations without having to file bankruptcy or endure foreclosure. The homeowner is able to save their credit, regain their dignity and their peace of mind. Lastly, the homeowner will be closer to rediscovering the American dream of homeownership because they are able to amicably resolve their lender(s)’ concerns.

 

For the lender(s), a short sale can be less costly than foreclosure and can provide an acceptable hedge against future price declines within the market. Also, for lenders that have become insolvent and need to liquidate assets, a short sale is a way to quickly raise capital when compared to the foreclosure option – a process that could take a year or more to accomplish. Lastly, for lender(s), a short sale means a guaranteed loss now as opposed to an uncertain loss in the future. This may be in many instantances a much larger loss.

 

For the investor buyer, a short sale offers them the opportunity to “Buy a property for as much as 40% or more below market value.” This discount means that they are able to make substantial profits.

 

For the home buyer, a short sale offers them the opportunity to buy a more affordable home. For some, this is the only way to experience the American dream and obtain homeownership, as the lower price relates to a lower and more affordable monthly mortgage payment.

 

For the Realtor or consultant, a short sale provides the opportunity to earn a fee or commission for helping a struggling homeowner. In many down markets short sales are the only viable option for continued real estate sales. During difficult economic times and recessions, one or two extra sales per month may be the difference between earning a living or looking for another job. Those extra sales each month can come from negotiating a short sale.

 

If you are a Property Owner and realize the benefit of negotiating a short sale for your property instead of facing foreclosure or bankruptcy, then we encourage you to Become a Property Owner Member today!

 

If you are a Realtor and realize the benefit of being able to negotiate short sales, sell discounted properties, and increase your ability to take future listings, then Become a Realtor Member today!

 

If you are an Investor and realize the benefit of having access to a step-by-step system that teaches you how to successfully negotiate and purchase properties, discounted up to 40% or more below market value, then Become an Investor Member today!

We offer dozens more free articles on our site as well as the Internet’s first step-by-step, “how to” guide that walks everyday people as well as seasoned professionals through successfully negotiating their very own real estate short sales – and at a price you can afford.

 

Visit http://www.StepByStepShortSale.com for additional information.



Repossession

“When it comes to home renovation in Okotoks, there are various ideas on renovation and construction projects that you can actually apply to your own home. However, when making additions to your home for its improvement, it pays a great deal to know the person to trust and rely on in order to make the completion of the task faster and easier. Being specific and certain about what you want to renovate is also a major consideration to guarantee you achieve good results afterwards.

Renovation in Calgary and house construction in Okotoks vary in types. Starting from kitchen and bathroom remodeling, re-roofing, drywall, re-painting, up to other home additions, you have many options to choose from for your home improvement project. But an important factor to remember when doing these renovations in Calgary is getting professional contractors in Okotoks capable of doing and handling all the works for you.

Handling home renovation all by yourself is not easy so it’s advisable to seek guidance and assistance from the experts. Doing so will ensure you the completion of your home renovation according to how you want it plus you don’t risk your safety. This is not just a practical thing to do but also an intelligent choice to make which every homeowner knows for sure.

Now that you realize the importance of having an expert to deliver the delicate task of renovating your home, the next thing to consider is how not to go wrong in choosing the right contractor to perform the job. It’s primarily important that he must be knowledgeable about the work you want him to do.

Inquire and conduct a background check on the rates and services of a contractor. Keep in mind that it is necessary you know whom you are working with. Also, to make certain that you won’t go over-budget with the things you want to accomplish for your home, ask for free estimates. It is not a bad thing to ask, practicality is really a necessity nowadays.

A practical and wise homeowner must know all these beforehand. Proper planning and good budgeting are additional things to remember all the time. Planning what you really want basically lays what your interests are. Through proper planning you’d be able to think of the renovation and home additions you want to do for your home improvement project. Good budgeting, on the other hand, will prevent you from spending more than what you’re supposed to from your savings.

Home renovation and construction are complicated tasks for a homeowner to handle. One can actually go loco if planning of details, good communication with the contractor and proper budgeting are kept undone. Therefore, if you are about to do modifications for your home, better be sure to accomplish all of these first not only to get everything finished but to ensure that you will have satisfying and excellent results in the end.”



Rent Back Fast

For a truly home-away-from-home experience and the ultimate in space and privacy, consider a vacation beach house rental during your next trip to the Caribbean or other beach locale as an alternative to booking a room at a crowded tourist hotel. Many hotels provide great accommodations, but nothing beats the spacious and quiet seclusion of a private villa or rental.

Whether seeking a romantic get-a-way or fun in the sun for the whole family, beach vacation rentals provide many options. Below are some factors to help you decide if a vacation beach house might be right for your next holiday.

Vacation Beach House Rental vs. Booking a Hotel Room

At a hotel… even a small one… you are sharing everything with lots of other people… strangers. More people equals more noise and commotion, which may not be as relaxing as you’d hoped. Often you have to set your alarm to get a palapa on the beach or that perfect pool lounger spot. Private vacation rentals often have their own beach and pool reserved for your use only.

True, hotels offer activities and services that you and your family may like, but many private rentals come with things like bicycles, snorkeling gear and games. Spa service will often come to your rental and certainly, you can still partake of all the local attractions.

Of course, it’s nice to have a restaurant on the premise like most hotels. However, many people like to keep snacks and drinks in their own fridge, be able to cook some meals or even have a private chef cook for them.

Typically the biggest difference concerns personal space. Private rentals almost always offer more space, privacy, peace and quiet both inside the residence and its surrounding outdoor environment.

Types of Vacation Rentals

Once you decide a beach vacation rental is for you, you’ll need to decide what type of property you want. In most tourist locations, you’ll find three options: private homes, apartments or condos, and condotels. That last option refers to condos that have been built at hotels and include use of the hotel facilities.

Private homes will usually provide the most room and will cost the most, but that can vary depending on location and the degree of luxury offered by the property.

Amenities

The amenities offered with your vacation beach house rental will vary depending on the property owners. You can expect all to be fully furnished and most provide things like, plates, utensils, coffee makers, blenders, etc., along with maid service. Some properties have private beaches and pools. Some properties even have private maids and chefs and come with the use of a car.

How To Rent The Perfect Vacation Beach House

Start planning your Caribbean vacation by first searching for that perfect beach house rental. You can either go through a direct management firm, which handles multiple properties or through the individual owner.

Unless the individual has been renting the property for a long time, you’ll have a more secure and professional experience if you work with a direct management company; however, many owners are very attentive and professional and can give you the most accurate details regarding the property.

Because these properties are booked up quickly, you’ll need to schedule your reservations as far in advance as possible. Make sure to ask about the cancellation policy for the property in case something occurs that interferes with your travel plans.

To secure your reservation, you will normally be asked to make a deposit equal to half the rental rate via your credit card with the balance usually due at some point prior to your arrival date. Some properties require a damage deposit in addition to the rental rate that will be returned after you have vacated.

Turks & Caicos: A Great Beach House Destination

Located in the West Indies not far from the Bahamas, the Turks & Caicos Islands as a group are one of the least developed islands in the Caribbean. Providenciales has been discovered with recent growth, yet remains a wonderful vacation destination offering many vacation beach house rentals.

Turks and Caicos villa rentals can even be found on the more secluded sparsely populated islands where you’ll find deserted white sand beaches with views of crystal clear turquoise water. That beautiful water is perfect for fishing, scuba diving, snorkeling, swimming with dolphins.

Of course, the beaches are fabulous. Grace Bay on Provo is consistently rated as one of the ten best in the world and many other equally stunning beaches exist on surrounding islands. Hiking, biking, whale and bird-watching, especially the abundant flamingos, are popular activities.

Seasons/Pricing

If you’re interested in renting a vacation beach house on the Turks & Caicos Islands, then be aware that the most popular season for travelers is between December and April with the Christmas holiday period representing the peak season.

The best time for beach house rental on the islands is from May to November when the costs are much lower. They range from $1,500 to $16,000 per week during the low season compared to $3,500 to $35,000 per week during the peak season.

Other Caribbean islands are similar, but will vary some. Certainly, there’s a wide range of enticing options to choose from, but again… start planning now, book your vacation beach house rental early and get ready for a fun and relaxing get-a-way!



Rent Back

Most of us like to decorate our homes and make it look ever new. Just buying a furnished house is not enough to reflect the personality and style of your home. In order to enhance the look of your house you need appropriate home decoration items to beautify and charm your house. It would make no sense if you have the most expensive and furnished house and no proper home decoration items to enhance the look of your house from within.

Initially people had to move to a land-based destination to buy home décor items for their expensive houses. However today with the development of the Internet you no longer have to spent hours on shopping in the heat of the sun. Today one can find number of home décor store online to enhance the look and feel of your house. These online home décor stores offer wide collection of amazing home decorating items including bed accessories, cushion covers, cushion filling, Curtains, home accent, luxury bedding, Table linen, sofa products and so on.

If you are wondering what to gift your loved ones this festive season then what better way can it be other than by gifting them with a set of home decorating items. Home decorating items are offered under different theme based categories like ocean décor, decorative Décor and bronze Décor.

Are online home décor stores safe?

It would not be right to say this that home décor stores are not safe. However if you still have that insecurity that online dealing can ruin your money then you have to make sure to understand and follow the following points.

Always select a reputable online home décor store that tells you the price of an item upfront.

Compare multiple online stores carrying the same product. Comparison-shopping is easy online. It would be advisable to find out two home décor catalogs that carry the same product to compare the prices. This will help you to save a lot of money.



Real Estate Professionals

In today’s economy, rent-to-own property is becoming a popular alternative. In this type of real estate transaction individuals pay monthly rent to the homeowner with the intention of purchasing the property within a specific period of time. A percentage of the rental income is applied to the purchase of the home.

Rent-to-own real estate transactions typically involve renting the property from the homeowner for a period of three to five years. Oftentimes, potential buyers are required to pay the homeowner a down payment of three to five percent of the purchase price. For instance, if the home is valued at $100,000 and you make a down payment of $5,000, the purchase agreement will reflect a purchase price of $95,000.

Next, a percentage of the rental income will be applied to the purchase price of the home. This can range from 5 to 100 percent and will depend on the arrangement you make with the homeowner. It’s rare to find a homeowner who will apply 100 percent of the rental income, but it’s not impossible. On average, most homeowners apply 25 percent of the rental income to the purchase price.

Let’s say you agree to pay $1,000 a month in rent and 25 percent is applied to the purchase price. Each month you rent, $250 will be applied. If you rent for five years, at the end of the agreement you will have accrued $15,000 toward the purchase of the home. At this time, the final purchase price will be $80,000. What this means for you is that you will have $20,000 of equity in the home you are purchasing, making it easier for you to obtain traditional financing at the end of the five year agreement.

Rent-to-own properties can be found in nearly any neighborhood, but before you sign on the dotted line you will want to take precautionary steps to protect yourself. Working with a real estate agent or investor who is well-versed in rent-to-own property transactions will save you time and money. However, many people choose to draft their own agreements with the assistance of a real estate attorney or on their own.

If you decide to draft the transaction on your own make certain every detail is in writing. Include how much down payment is required, what the monthly rental rate will be, the percentage of rent money applied to the purchase price, who will be responsible for maintenance of the property and a clause that allows you to terminate the agreement if the property owner (or you) does not uphold their end of the bargain.

Rent-to-own property deals are a good option for people with less-than-perfect credit. This type of transaction will provide you time to get your finances in order while building equity in the home you wish to purchase.

It is often very hard to find a rent to own home. There is no central database that has all the rent to own homes listed so that you can search for the right home. You have to visit web sites that are hard to find, read through local newspapers weekend after weekend, and then spend hundreds of miles driving to try and find what you are looking for.

Nine times out of ten lease option homes will not be listed in the Multiple Listing Service. Even if they are, agents are reluctant to show them because they have to defer their commission for twelve months or more until the home sells.

Rent to own home owners may not always have the money to advertise in the newspaper, and will often rely on yard signs or word of mouth advertising. So how do you find them? Instead of spending weeks reading through newspaper ads, driving around looking for yard signs and viewing rent to own homes that you can’t buy or don’t want, you can now have your search done automatically and only the owners that have homes meeting your criteria will contact you. This is especially useful if you are relocating out of state, and don’t know which newspapers to read to find these homes.



Passive Income

It’s every person’s dream to have the ‘perfect home’. But what exactly do you mean by a ‘perfect home’? Surely, each person will have his/her own idea of perfection. But one thing that will be present in each one’s idea of a perfect home would be ‘home décor items’. Yes, it’s home décor items, which really add to the perfection of a home. Whether it’s elegance, beauty or class that you are looking for, we have various home décor items that’ll give you just that. At Home Living Style, we give you any home décor item that interests you. Among the many home décor items available, we have bathroom vanity cabinets, mirrors, wall décor, lighting, vanity tables, fireplace and accessories.

Nowadays, no bathroom can look elegant without an attractive vanity sink chest. And, hence, we offer you designer sinks that make your bathroom look stylish and fresh. There’s a vast range of designs that are available at Home Living Style. We have modern as well as conventional vanity sinks made from glass or wood. Sizes range from round to square to even double sink vanities. And they come in small as also large sizes. This unique home décor is designed especially for your bathroom. So, when you go home décor shopping for your bathroom, Home Living Style is the place to shop at. The vanity sink variety available is made from long lasting material and is attractive and multipurpose.

The wall décor items available consist of the wall tapestry which comes in different varieties. We offer you wall décor for your bathroom. These are under bathroom accessories. We have different pictures that can adorn your walls like different types of faux windows or framed paintings, hand paintings etc. Kitchen plaques are another category that is offered here. Plus, we offer you a variety of wall décor brackets.

Mirrors form an important part of home décor items today. So, you should definitely add it to your home décor shopping list. We make available to you Venetian mirrors, framed table mirrors, framed wall mirrors, faux window mirrors, etc. Within these different types you have further choices available to you. Elegant decorative wall mirrors are considered a unique home décor item and hence, are definitely a must have. These mirrors remind you of the beauty of the glorious days of the past.

Vanity tables are another home décor item that should be a part of your home décor and furniture. They are often considered a luxury home décor. Vanity tables are offered along with stools, chairs, mirrors, etc. They are available in different shapes and sizes.

The lighting is a crucial component of your home décor. You can choose from a host of home décor items to enhance the lighting in your lovely home. This could involve using chandeliers, floor lamps, hall fixtures, night lights, table lamps, wall sconces as well as decorative wall fixtures.

Another good offer we have is the fireplace accessories. The market for fireplaces has been on the upswing in recent years. Keeping this in mind, we present to you a vast range of fireplace accessories like Electric Fireplaces, Fireplace Andirons, Fireplace Mantels, Fireplace screens, Fireplace Tool Sets, etc.

And one of our major offerings is the massive variety of clocks that can enhance the display of any home décor. Among the clocks on sale are cuckoo clocks, grandfather clocks, table clocks, floor clocks, mantel clocks, wall clocks, etc. Within these different types of clocks there are even more varieties available.

So, if you have planned on going for a whole new range of home décor items, then do pay our site a visit. We assure you that each item in your home décor shopping list will be available with us. So, you will never need to look elsewhere, because all you want is right here.



Passive Income

Home renovation is the process of making changes to your home in order to either undertake maintenance work or to make it more beautiful and comfortable. It is also undertaken to upgrade your home from an investment point of view so that its market value goes up. You could either go in for a major overhaul of your home or you could make minor alterations of some areas. Moreover, you could make changes to both the exterior and interior of your home or either of the two.

Budgetary Constraints

Who wouldnt want his home to look more beautiful and be more comfortable? The desire to live in a better home than your neighbour’s or your friends home is part of human nature but you have to check your bank balance before you plan out any home renovation ideas. The first stage of your planning should therefore, be the allocation of a budget for this purpose. You have to decide as to how much money you can spare for home renovation and also make up your mind regarding the type and extent of renovation that you wish to carry out.

You would then need to get quotes for the work and see if the budget allocated by you would suffice for the purpose. You should also keep a suitable margin for unexpected contingencies. You might need to reduce the extent of repairs or compromise on the quality of work in order that the expenses remain within your budgetary limits.

Design Consultants And Contractors

If the home renovation work is of a minor nature, you can plan it out and execute it yourself as any warehouse can supply the required materials and the do-it-yourself instructions. However, if the home renovation involves major overhaul of your home, it would be advisable to take the help of professional design consultants and to assign the execution work to a contractor.

Nowadays, the best place to look for such professionals is the Internet as you can contact them easily from the comfort of your home and get their opinions and quotes in no time at all. Moreover, you can either engage a general contractor who would supervise the entire work on a turnkey basis or you can go in for individual specialized contractors for different types of work such as flooring, roofing, plumbing and painting. The general contractor would take responsibility for the complete scope of the home renovation work from designing to execution and even clearing the debris when the work is over.

Spectrum Of Home Renovation Work

The range of home renovation work is vast as it includes many aspects such as floor improvement, wall makeover, roof replacement, maintenance or improvement of ventilation, heating and air conditioning systems, providing water proofing for basements, providing energy saving devices for reducing utility bills, providing improved safety measures, and decorating the home and its exteriors.

Careful planning and implementation will go a long way in achieving the type of home renovation that you need.



Rent Back Fast