Every real estate investor dream is to buy a house, give it out for rent
and make profit out of it. On the verge of retirement, the mindset changes
where they would like to sell off the house and live in a rental apartment.
DC Fawcett, real estate mentor
gives his reviews on buying and
renting a house, it pros and cons.
Buying a house:
At the time of
purchase, the buyer has to mention down payment amount which makes the offer
valid. The amount varies depends on credit points and mortgage loans.
To make sure
that the offer and actual price are equal, home appraisal is suggested by the
lender. Home inspection is must, if there are any defects has to be checked
before buying. Charges are levied almost equal to that of a home appraisal. Maintenance
fees, property and utility taxes are to be paid along with insurance and
closing cost. Moving cost depends on number of goods and distance.
In case, you
are purchasing home for the first time, it is great if you choose second hand
furniture. Repairs are mandatory, so it is the purchaser duty to shell out the
money from his pocket and replace with the new one or repair the same.
Pros:
Tax benefits
Can selling it out for rent
Interior decoration
Cons:
Renting a house
Renting a house is comparatively
smarter choice, because it is cost effective than buying a house. But there are
several costs that you may need to bear.
· Deposit:
Owners request
the tenants to pay the security deposit which can be used if any damage or
repair occurs. It is known as security deposit which is returned to the renters
at time of vacating the house.
· Rental payment and insurance:
Prior to moving
in, you need to pay the monthly rent, it may vary if you move in between the
month. The moving cost depends on number of goods and distance you travel to
shift which is similar to moving cost of buying a house. Renter insurance is
not mandatory but it is safe to apply in order to protect the house from
burglary and fire.
· Utilities:
Owners may provide
basic amenities at the time of moving in, if so they are charged along with the
monthly rent.
Pros
Credit profiles and points are not strict
Few utilities to be carried while moving
Cons
No equity and housing security
Rental scams take place quite often.
They are in form of telephonic conversations
pretending to be the owner or real estate agent asking you to transfer money.
Fraudulent scammers copy the content from sites which are on sale to rental site. So investors must be safe.
Showing the properties which are belonging to government or corporate to renters which have no landlord.
Fraudulent scammers copy the content from sites which are on sale to rental site. So investors must be safe.
Showing the properties which are belonging to government or corporate to renters which have no landlord.
To stay secure and safe, join virtual real estate investing club founded
by DC Fawcett where his blogs speak
about rental and short scale scams.
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