Why Should I buy now instead of Rent for the next 3 years?
Buying is always a better situation especially if you are just starting out getting a 1 or 2 bedroom condominium or small house. Rental prices have increase 5% to as high as 15% in the Detroit Metropolitan area depending on the area.
If you buy you can acutally save money over renting, as well as start with a small investment that you later can rent out yourself and increase the earnings. There are always pitfalls as well as benefits. Speak to your local Realtor or Accountant for furthure information.
For example $50,000 condominium (2 Bedroom 1 Bath ) apartment style - Monthy Payment Mortgage: $260.62- Taxes: $125.00- Association Dues $264.00 (Gas & Water included) Monthly payment of $650.00 versus $950 monthly rental payment $300 a month savings plus interest write off on taxes.......
Which would you want?
Why can’t you find a home or condominium to rent?
Here are some of the reasons:
· Spring and fall are the busiest times of the year for rental movement
· Medical & Dental Residency programs are starting to bring in new residents for their annual turn over of residents finishing their programs.
· University and College students are looking now for homes for the start of College in late July & August.
· Corporations are increasing the number of relocations for the new technologies and the bettering economy.
· Those who have sold there homes as a short sales are unable to purchase a new home for a minimum of three years, so they have to rent.
· Foreclosed home owners cannot purchase another home for up to seven years so they have to rent also.
· Longer processing of foreclosed homes by banks before they are released back into the market.
· Those selling their homes are renting to make sure their homes sell first before jumping into another mortgage or waiting for their new home to be built or renovated.
What can you do to make sure you can get that condominium or home that just came up for rent.
· Make sure you have your rental application ready.
· Have a current copy of your credit report with detailed information such as you credit score. (Credit Scores have become even more important to rental properties then ever before)
· Have proof of income, at least one month’s paystubs or bank statement showing at least 6 month reserve of rental payments
· Current landlord contact information
· Employment letter from your company.
What will you need monetarily for the rental?
· Application fee (Non Refundable –price will depend on the service homeowner or Real Estate Agent utilizes)
· Security Deposit (Legally can be up to 1 ½ months of rental price)
· First months rent
· Cleaning fee (Non refundable - some do charge this)
· Pet Fee ( Non refundable fee for pets)
It can be a very confusing time especially for Students or Medical Residents, always read the lease. Many leases can have fees or restrictions that you may not be aware of.
Remember using a Realtor as a buyer's represenative does not cost you anything and helps protect your rights as a tenant.