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When it Make More Sense To Rent

13 Feb 2018

Posted by Joseph Coupal

HHHunt Apartments

How to know when it makes more sense to rent?

For most people, buying a home is the largest financial decision they will ever make.

Whether you pay with cash or take out a mortgage, you'll probably spend hundreds of thousands of dollars on your living situation over the course of your lifetime.

When it comes to buying a home, the key is knowing when it's actually the right time to buy one. Sometimes you'll be better off renting for a few years to prepare yourself for the financial reality of a mortgage.

With that in mind, let's take a look at when it might make more sense to rent.

  • When you're fresh out of college. It's simply not smart to buy a house when you're right out of school. You have too many unknowns to think about — like where you'll work, whether or not you're in a relationship, and if you even have enough money for a mortgage in the first place. You have so many transitions and changes right out of college that the last thing you need is to be tied down to a house.
  • When you're moving to a new city. I can't tell you how many times I've heard of people who move to a new city and buy a house right away, only to realize later that they would rather live in another part of town. By renting for a year after you move, you can learn about all the different areas of town and decide which one best fits your needs and budget.
  • When you're a newlywed. I always recommend waiting a minimum of one year after you're married to buy a house. Just like the other situations, newlyweds have a lot of transitions in their lives. Job and income situations change from year to year at that point in life, so locking into a mortgage probably isn't a smart idea.

Now, are there exceptions to these situations? Of course!

If you're an older newlywed who has owned a house for a while, then it makes perfect sense for your spouse to move in after you're married.

If you're already familiar with the town you are moving to, and if you've already saved up a down payment, then there's nothing wrong with buying a house after your move.

There are always exceptions. The key is to make smart long-term decisions with your hard-earned money.

Is Renting OK?

Don't buy into the perception that renting is somehow a bad idea. You're not wasting money you could use on a mortgage. Instead, you're showing patience, discipline and good stewardship of your income.

Remember, your goal is not just to buy a house — it's also to make a good investment. You should never buy a house simply because you can. You want to find the situation that works best for you.

If you jump into a mortgage before you're ready, you could make a major financial mistake that could set you back years.

What about the market? If it's a buyer's market, shouldn't you jump right in and buy a house? Only if you're financially prepared.

To learn more about renting an apartment, contact HHHunt Apartments.

Source: Boundless.org

Downsizing (or Rightsizing) May Be the Best Fit For Your Life

06 Feb 2018

Posted by Joseph Coupal

HHHunt Apartment

If you are starting to feel like you have too much stuff and too much space, ask yourself what is holding you back from making a change. Is it some outdated notion that cutting back on the quantity of your possessions or the size of your home will change how others perceive you? Could you be living with an outdated notion of what success or happiness looks like? Maybe you are ready to enjoy time visiting family and friends, traveling to new places with different experiences or spending time on a freshly discovered hobby — anything other than spending your time and money on home upkeep and maintenance.

In today’s world, what used to be called “downsizing” is rapidly being replaced with the word “rightsizing,” and for good reason. Rightsizing implies that this is a healthy and highly personalized process — one that each couple or individual may decide to undertake and then accomplish at their own pace and in their own way. That being said, no one can tell you exactly how to decide you are ready to downsize or give you a concise plan on how to make this process fit you and your needs.

As you begin to consider this idea of rightsizing, pay attention to the daily things that are most meaningful and useful to you, and ask yourself, “Does my current lifestyle and home support the things that are most meaningful to me? What fits the current ‘me’ and what no longer works for me?” If more of your daily lifestyle and environment comes out not fitting, then maybe it is truly time to rightsize your life.

Here are some lifestyle and environment questions to ask yourself:

Are you living in a home with more rooms that aren’t being used than ones that are?

Do you find yourself avoiding the thought and expense of making your old home fit your new lifestyle?

Do you have a two-story home and find yourself spending most of your time on one of the two floors?

Are you wishing the kitchen you remodeled 20 years ago had all the newest conveniences and amenities?

How many times in the last year have you avoided completing routine house maintenance or chose to call an outside handyman, or maybe even just let it go, when you used to always be on top of it all?

Has your neighborhood grown so that you can no longer easily jump in the car to grab groceries or go out to dinner?

Are their new hobbies or activities you would like to try but can’t find someone to go with or a place to get started?

Do you have children and grandchildren growing up further away than is easy for you to reach by car or easy for them to visit you?

Do you think about wanting more control over how your next move unfolds?

As you share in the usual end-of- year holiday festivities, be mindful of how your current situation fits your evolving needs. Make your 2018 New Year’s resolution to find the right fit and size for you.

For more information on apartments, contact HHHunt Apartments.

#HowYouLive

brentwoodhomepage.com

You are Better Off Renting If…

23 Jan 2018

Posted by Joseph Coupal

HHHunt Apartments

1. You are indecisive. Buying a home is a big decision. It will likely be the biggest purchase you ever make. And before you spend that kind of money, it's good to know what you want. But if you find yourself singing the praises of hardwood floors one week and then talking up the benefits of wall-to-wall carpet the next, you might not be ready. Is a dishwasher a must? What about a second bathroom? Before you hand over a large down payment, you should be able to prioritize and have a good idea of what will make you happy.

2. You want to phone it in. Repairs and maintenance of any kind. Sometimes it's nice to be able to phone a landlord. Of course, when you own a home, you can phone an expert to fix a problem, but you have to pay them. When you rent, the majority of that responsibility falls to your landlord.

3. You like to keep your options open. Whether you want to be able to move down the block or across the country, it's nice to know you can. Living through the recent recession, I saw many people who weren't able to find buyers for their homes when they were transferred to new locations or when they simply couldn't afford to pay the mortgage after being downsized. If you want the flexibility to switch careers and/or coasts, renting may be the better option for you.

4. You want your cash elsewhere. Maybe you want to invest in the stock market, start a business or have some cash on hand for an emergency. You may not feel like tying up your money in a home. Buying a home usually requires a large sum upfront and then a percentage of your money for the life of your mortgage. If you want the flexibility to choose where your money goes, buying a home might not be right for you.

5. You don't understand (or you don't want to). Owning a home can feel like it has its own language. Between mortgages and taxes, there's lots to learn. There are resources to help it all make sense. But if you want to remain blissfully ignorant, you can keep renting. You might even be a renter for life.tion on apartments, contact HHHunt.

Source: AOL Real Estate

3 Reasons Why You Should Not Buy a Home

16 Jan 2018

Posted by Joseph Coupal

HHHunt ApartmentsThe Fairy Tale

We are constantly told throughout our youth that we are to follow a certain path. Grow up, go to college, graduate, get a job, get married, buy a house, have kids, live happily ever after. But we all know this isn’t a linear path and life has a funny way of throwing you curve balls when you least expect it.

Buying a home can be a good thing, but it can also be another shackle that holds you back from pursuing your dreams. Here are three reasons why you should hold off on the largest purchase of your life.

Lack of Mobility

You’re in your 20’s. Not only is this a time for excitement, it’s a time for decision-making. Do you stay in your college city? Do you move back home? Do you follow your dream of chasing the endless summer? Buying a house at this point in your life certainly does one thing - it plants your butt firmly in one location and gives you a heck of a lot of responsibility.

You may think, “But I can sell the house at any time if I choose to move.”

Well, yes. But then you have to deal with closing costs, paying a broker, etc. If you move shortly after buying your home you’ll take it on the chin with fees and expenses.

You also have to deal with maintenance, property taxes, insurance, your roof developing a leak and the kid down the street that keeps egging your house. Do yourself a favor. Keep yourself mobile and your options open.

Increased Debt Burden

You will be taking on one of the largest purchases of your life and a mountain of debt.

Debt is a shackle that will hold you back from taking flight and can impair your ability to make decisions. When you have 30 years of debt payments (i.e., a mortgage), you can’t pack up and leave for that trip-of-a-lifetime. There is also your debt-to-income ratio that is important to consider. When this ratio gets too far out of whack, it will get more difficult to obtain loans for things like a car, credit cards, etc.

The Buy Versus Rent Debate

Whether you knew it or not, there has been a long-standing debate on the financial benefits of buying a home versus renting. The recession in 2008 that sent the real estate market swooning was painful for those that owned property. But even over the long term, the benefits of owning property can be argued against.

Just to be clear, owning real estate is not a bad thing. But, the numbers don’t lie. Buying a single-family home is not as great an investment as some would have you believe.

For more information on apartments, contact HHHunt.

#HowYouLive

investopedia.com

3 Reasons Renting is Better than Buying

09 Jan 2018

Posted by Joseph Coupal

HHHunt ApartmentsThe housing crash permanently altered the perception of homeownership. Renting is now, if not vogue, a socially acceptable alternative to homeownership. And here are a few reasons why renting can be even better than owning a home.

Liquidity

First of all, renters have a greater liquidity than homeowners, a financial flexibility that cannot be understated in today’s economy. Homes are a highly illiquid form of investment, given that they cannot be sold quickly. That’s not to say buyers don’t exist, but they’re not necessarily easy to come by either. A house cannot be quickly converted into cash without the possibility of losing a large percentage of its value. Renters avoid this problem entirely.

And unlike homeowners, renters invest no equity in their property, so they’re able to put that money elsewhere. This is important to note because homes are not appreciating like they used to. Homes are not the safe bet that people have always relied on. If people are interested in seeing large investment returns, they’re better off putting their money elsewhere.

Flexibility

Renting also affords a mobility that homeownership cannot. Instead of being bogged down by the process of selling a home, renters can move as soon as the lease expires. Then they’re free to move wherever they like, trying out new neighborhoods or sticking around what they know. And they don’t have to rehab their unit prior to moving. They don’t have to engage in costly updates to make their unit more desirable. Escrow might as well be a word in a foreign language.

Additionally, renters don’t have to take the time to fix anything — that’s the landlord’s job. Instead of replacing a busted washer and dryer, many renters can just request a fix from the property manager. It’s incredibly easy, saving both time and money.

Lifestyle

Many rental properties offer numerous facilities and benefits that homes do not. Apartment communities offer amenities that cater to life’s essentials — and then some. Some of these amenities are in-unit, like upgraded kitchens, energy efficient appliances, smart control HVAC systems and designated storage spaces. Plus, there are community amenities that homeowners lack. These include gyms, swimming pool and internet cafe. Renters save an incredible sum by avoiding membership fees.

The data doesn’t lie: According to The State of the Nation’s Housing 2017, the number of renter households rose by 600,000 from 2015 to 2016, marking 12 consecutive years of growth. Conversely, during the same 12-year period, the national homeownership rate fell. And not only did this figure fall, it decreased every single year. The stigma behind renting has all but vanished, demonstrating clear advantages with which homeownership cannot compete.

For more information on apartments, contact HHHunt.

#HowYouLive

forbes.com

High Earners Moving Toward Renting Instead of Buying

02 Jan 2018

Posted by Joseph Coupal

HHHunt Apartments

The Fastest Growing Group of Renters: It May Surprise You

So you think you have the average American renter all figured out—that they're a group of young, unsettled, commitmentphobic folks, just starting out and scraping by? Well, you might want to widen out that picture a bit. The reality: The fastest-growing group of new renters includes those aged 50 or older, or younger folks raking in six-figure salaries, according to a new report.

This is a tale of the haves—who could afford to buy a home, but choose not to—and the have-nots, who don't make enough money to become homeowners. And although overall rental prices are starting to level off, and in some cases even dip a little, there still aren't nearly enough affordable rentals to meet the overwhelming demand from lower-income renters.

The new renter: Older and wealthier than you'd expect

Overall, renters had a median age of 40 in 2016—up from 38 in 2016. (In comparison, homeowners are a median 56.) That's because more baby boomers, whose kids have flown the coop, are downsizing out of their large, suburban homes and opting for maintenance-free rentals instead. No more mowing the lawn and shoveling snow for them! That's pushing up the median age of all renters.

More folks earning some serious dough are also choosing to rent rather than buy. About 13.3% of renter households made more than $100,000 in 2016. That's up from 9% in 2006.

That's partly because some high earners are saddled with high student debt loads, making it difficult to cobble together a down payment. In addition, more-walkable cities, many of which have undergone attractive revitalizations, have also become desirable places to live. So those with means are willing to lease a unit in a newly constructed community with luxe amenities.

For more information, contact HHHunt.

Source: realtor.com

Reasons It Can Be Better to Rent a Home

27 Dec 2017

Posted by Joseph Coupal

HHHunt ApartmentsTo some, answering the classic question “is it better to rent or buy?” is easy.

But owning a home isn’t the best move for everyone. For those weighing renting vs. buying, here are a few reasons why renting can be the better choice.

1. You want maximum flexibility

With renting comes the flexibility to stay put for a few months or years without paying much more than a monthly payment. If your job requires you to move every few years or if you’re unsure how long you’ll be in one place, it can make much more sense to rent. The upfront costs of a home purchase can set you back financially if you move too soon after buying.

You might also consider renting if the neighborhood isn’t one you’re set on.

2. Buying is out of reach financially

The price tag on a home can be discouraging, especially if space is important. Some families with kids can’t afford to buy a home in the area they want that’s of similar size and space as the house they rent.

3. You want to avoid maintenance and other added costs

When you rent, your landlord typically has to fix structural defects or other problems such as plumbing or wiring, but once you’re an owner, maintenance and repairs are your responsibility. Shukla in San Jose says upkeep is one of the more surprising things he’s had to invest time and money into since becoming a homeowner.

Many do not factor in the costs of maintaining a home. Maintenance, upgrades, property tax, insurance all add up to additional costs per month beyond the mortgage.

4. Other priorities top homeownership

Location, particularly in relation to work or family, might play a large role in whether you choose to rent instead of buy. Mandel and her husband, for instance, knew they wanted to be close to their extended family in the area.

About 42% of renters believe their housing situation lets them live in a more convenient location, according to a 2012 Fannie Mae survey. Among millennials, most prefer city living, and two-thirds of these young adults are renters, according to a 2014 Nielsen report.

Buying a home is not a rational financial decision. It’s an emotional lifestyle decision that has financial ramifications.

If buying doesn’t fit into your lifestyle and financial situation, renting might be the better choice.

For more information on apartments, contact HHHunt.

#HowYouLive

Nerdwallet.com

Renting Might Be More Profitable Than Owning a Home

19 Dec 2017

Posted by Joseph Coupal

HHHunt ApartmentsIt’s a debate that has been going on for a while now between two possibilities: renting or owning a home. Which one would prove to be more profitable in the long run? A new study called “A Revision of the American Dream of Home Owning” brings forward an interesting approach.

When trying to accumulate wealth, one essential element is the homeowner’s commitment to save money for the down payment of the home. Although you might think that owning a home would make you more money, this research states otherwise. It seems that those who turn to investment in stocks and bonds may actually gain more in the long run. Taking a potential down-payment and making smart investments will probably leave you with more money than if you sank every penny into a house that may or may not be worth what you originally paid for it.

In terms of stability, the new research also makes the case that investing in a more controllable market such as the stock market is better than investing in a more unpredictable market like housing.

Not being tied in to a mortgage is definitely preferred by more and more people nowadays, Millennials and Baby Boomers alike. Renting is simpler and eliminates the constant worry of home maintenance and other unknown costs that might come with owning a home. Plus, renters have more flexibility if in need of a change.

However, the study’s authors don’t necessarily discard the fact that buying a property might also prove to be a clever idea for long-term wealth accumulation in the sense that it forces saving. “Society appears to have been telling people the right thing to do (own a home) but for the wrong reason, […] it appears that homeownership forces saving and when combined with the tendency of households to remain homeowners once they initially switch to ownership explains why owners have more wealth”,.

Everybody would agree that owning a home is a big part of the American Dream and although this might still be a valid option, it needs reinterpreting. Buying a home paves the path towards wealth accumulation as long as it’s used as a strategy to create risk-adjusted returns.

All things considered, if posed with the two options, the study proves that renting a home and investing your savings in the stock market is certainly worth some serious consideration.

For more information on apartments, contact HHHunt.

#HowYouLive

rentcafe.com

Signs It's Time to Downsize Your Home

12 Dec 2017

Posted by Joseph Coupal

The Gardens at Twin Hickory Apartments, Glen Allen, VAOwning a home has long been the American Dream, but these days, far too many people are pushing themselves too hard to attain it. It's estimated that 39 million Americans can't actually afford their homes, while more than half the population has been forced to make major financial sacrifices to keep up with housing payments.

No matter what sort of property you're sitting on, there comes a point when you need to take a step back and decide if the cost of ownership is worth it. If you're thinking of downsizing, here are a few signs that it's the right move for you.

1. Your mortgage, insurance, and property taxes exceed 30% of your take-home pay

Taking on too much house is one of the easiest ways to set yourself up for disaster. When you overspend on housing, you make it harder on yourself to save money, and you give yourself limited wiggle room when unplanned expenses arise.

So what's considered too much house? Generally speaking, your mortgage, insurance, and property taxes combined shouldn't exceed 30% of your take-home pay. If you find that they do, then it's time to consider downsizing and freeing up some much-needed room in your budget.

Keep in mind that it could be the case that your housing costs weren't always excessive, but have now reached that point because your circumstances changed. It pays to be realistic about your situation. Consider getting out before you find yourself headed for financial ruin.

2. Your maintenance and repair costs keep climbing

The average U.S. homeowner spends anywhere from 1% to 4% of his or her property's value on annual upkeep. But if you find that your costs are exceeding the upper end of that range, it may be time to move to a smaller home that's less costly to keep standing. Review your bank and credit card statements for the past two years, see how much your home costs you to maintain, and decide if that figure is reasonable. If it isn't, then you'll want to consider a move.

3. Your housing costs leave no room for savings

Maybe your housing costs don't exceed 30% of your take-home pay, and your maintenance costs are minimal. But be that as it may, if you find that you're not saving money month after month, and housing constitutes your greatest monthly expense (which is the case for most people), then you may need to work on trimming that figure.

If you move to a smaller home, it's cheaper to heat and cool.

4. You're tired of not having options

Another reason to consider downsizing is if you come to realize that your housing costs are preventing you from enjoying too many of life's luxuries. Maybe you're swinging your mortgage payment just fine, and are managing to save responsibly all the while. That's all fine and good, but if you find that you're mostly unable to dine out or take vacations because your home monopolizes too much of your income, then it's time to consider a smaller -- and cheaper -- place to live.

5. You're no longer using all that space

One final argument in favor of downsizing boils down to whether or not you really need all the space you have. If you're older, and your adult children have moved out, then it may not pay to spend all that money on maintenance and the like when you don't actually need the room. Though letting go of a beloved home can be difficult, you can focus on building memories in your new home -- and one that's more affordable.

Housing can be a huge expense, so be honest with yourself about whether the cost of your home is really worth it. You may come to realize that downsizing offers you the best of both worlds -- a comfortable place to live, and a lot more money in your pocket.

For more information on apartments contact HHHunt.

#HowYouLive

Madison.com

Should You Rent or Buy a Home?

07 Dec 2017

Posted by Joseph Coupal

HHHunt Apartments

Most of us grew up hearing adults tell us what a great investment owning a home is.

But is it really always a good choice to buy a home? Are there any conditions when it is better to rent instead of purchasing a home? The answer is yes, owning your own home can be a solid investment, but it is also true that purchasing a home is not always the best plan. When deciding whether to buy or rent, you should consider multiple factors, because there are pros and cons to both buying and renting.

There are several financial benefits to renting temporarily or even long-term. If you rent, you will never have to pay property taxes. You should purchase renter’s insurance, but you won’t have to buy homeowner’s insurance, which is more expensive. Also, while owning a home can be financially beneficial, it isn’t necessarily the best way to invest your money. You could choose to invest in stocks, and you might end up with more money than you would by simply owning a home for a long time.

If you do buy a home, you will have to take care of it if you want to keep your investment. You would also most likely have to hire someone to fix issues like the roof, plumbing, or other repairs. If you consider yourself handy at fixing things, then you also could choose to make the necessary changes yourself. However, if you already have a busy life or simply prefer not to tinker with household issues on your time off, then you will have to pay someone.

These are things that potential homebuyers often don’t consider: All of these issues cost money if you own your own home. If you prefer to have someone else handle most problems, escape yard care, and also avoid additional costs, you may consider long-term renting.

For more information contact HHHunt.

Source: wallstcheatsheet.com


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