Is Buying a Home a Better Way to Produce Wealth than Renting?

Buying A Home Is Better Way to Produce Wealth Than Renting

by The KCM Crew on September 22, 2015 

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Indexhomeownership is a better way to produce greater wealth, on average, than renting.

The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines that entire US housing market and then isolates 23 major markets for comparison. The researchers at use a “’horse race’ comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.”

Ken Johnson, Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:

"The U.S. as a whole is still in clear buy territory. The cities of Cincinnati, Chicago, Cleveland, and New York City are deep into buy territory."

Miami and Portland had been inching closer toward renting being the better option but have"pulled back from the edge." Johnson goes on to say, “that's a good sign for home pricing as it suggests prices are going to level off in these metro areas."

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Money Saving Maintenance Tips for Rental Properties

By Silvia Englert, General Manager at Houserie.com

RISMEDIA, Wednesday, August 05, 2015— One of your responsibilities as a landlord is to take care of maintenance and repair issues in your rental. Regular maintenance can help you catch small problems before they turn into big expansive problems and will in the long run save you lots of money, time and reduce the number of tenant complaints!         Buying A Home VS Renting: Weigh All the Factors   consider options when looking at beach resort real estate.  Ask Long & Foster Real Estate - Ocean City for advice on the local market.   Visit:   http://www.susanantigone.com/ Here are some maintenance tips that can save you money: 1. Test all smoke and carbon monoxide detectors regularly.  Set a regular schedule to test all detectors. Also be aware that the average lifespan of a carbon monoxide detector is five years, and of most smoke alarms 10 years. Replace according to manufacturer recommendations. These devices save lives and can help minimizing damage by alerting people when there is a fire! Be aware that if these devices are not in working order, you can face legal action.  2. Have a thorough electrical inspection done by a qualified technician at least once every 10 years. This inspection will reveal any problems with unsafe wiring and circuits that could cause an electrical fire. In addition, if your rental unit comes with appliances, make sure that these are in good working order before new tenants move into the property. 3. Check for water damage and leaks. Check for leaks and soft spots after heavy rain storms. Also look for signs of water around windows, showers, and toilets and check under sinks, boilers, and water heaters. Identifying water leaks early can prevent major damage to walls, ceilings, and a tenant’s possessions. It also prevents dangerous mold! 4. Inspect shower caulking and grout between tiles. Wear and tear on bathroom and kitchen surfaces can result in mold and even cracking of tiles. Prevent any moisture or mold from getting below the surface by making sure the areas around tiles, tubs and sinks are sealed. 5. Inspect and treat for pests on a regular basis. Even if you do not currently have a pest problem, you should exterminate on a regular basis to prevent such problems from occurring. Tenants hate seeing bugs in their home and keeping up with pest control will prevent a larger pest problem later on. In addition, regular termite inspections should be performed as well. Pest control is usually best left to a professional. 6. Inspect heating and air conditioning systems regularly and replace air filters more often. Heating or air-conditioning systems should be inspected at least once a year. This will help to ensure that such systems are able to run safely, as well as efficiently. Filters should be replaced regularly at least a couple of times a year. A simple $15 filter for a furnace or air conditioner can potentially save a landlord thousands of dollars in repairs. Dirty filters can increase your utility bill by causing the system to work harder or can lead to malfunctions in the systems. Replacing the filter will help prevent the air duct from becoming contaminated. If clogged, the ducts will need to be professionally cleaned, and that is an expense you do not want to incur. 7. Paint your property before damage occurs. Painting inside and out does not only make your property look better but it can actually help to prevent water damage, mold and rot. If you have noticed that the paint on your property has started to peel, paint immediately! 8. Flush your water heater. Once or twice a year, you should drain and flush your property’s water heater. This needs to be done to remove the sediment that can build up in your unit which can reduce the efficiency of your water heater and clog the drain valve. Replacing a water heater is expensive!  By spending a little time and money now to perform property maintenance, you can save yourself a lot of time and money in the future. Another way to save money in the long run as a landlord is to perform a comprehensive tenant background screening on every prospective tenant. For more Information, please visit www.houserie.com, follow and like us onFacebook or visit our Landlord Blogs. RISMedia welcomes your questions and co

Summer Beach Vacation Home: 5 Things to Know Before Renting Out Your Home

TRULIA'S BLOG \ REAL ESTATE 101

5 Things to Know Before You Rent Out Your Home

By Becky Frost | July 1, 2015

A credit check can offer insights into your applicant’s payment history and gives you a good idea if they’ll likely be a good or bad credit risk.

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Owning a rental property requires hard work, patience, and planning.

Ocean City MD real estate.  Renting or owning a vacation home. 

If you’ve entertained thoughts about renting out your home, you may be asking yourself a few questions: “Is it worth hanging on to this property?” “How will I feel about strangers moving into my home?” “Will my tenants be responsible?”

Owning a rental property can require hard work, patience, and planning. There’s the good to consider, like the potential to increase your income and build a steady cash flow. On the other hand, being a landlord may test your ability to deal with the unexpected, like emergency home repairs or unreliable renters.

Before you hand over the keys, here’s what you can do to make the rental process go smoother.

1. Research the market

Research the market in the neighborhood of your rental home to choose a rent amount that matches local rates while still helping you earn a profit. Consider the square footage and number of bedrooms and bathrooms.

You might also take into consideration any additions to the property and the age of the home. Don’t forget to factor in costs like pest control, lawn maintenance, andoccasional home repairs.

2. Grace your home with curb appeal

The first impression of your home’s curb appeal can mean everything, and depending on where you live and the time of year, your home may have taken a beating from the sun, wind, rain, or snow.

To give your home a fresh look, rent a power washer, clean out the flower beds, and trim shrubs and low-hanging tree branches. Give your lawn a clean trim, your panels a new coat of paint, and your shutters a good cleaning.

3. Check to see if your prospective tenant is financially responsible 

A credit check can offer insights into your applicant’s payment history and gives you a good idea if they’ll likely be a good or bad credit risk.

You may also want to consider hiring a reputable company that can perform a tenant screening on your potential occupants to find out if they’ve damaged previous rental properties or have a criminal record. You can also ask for referrals from past residences since this information won’t be included in a credit report.

4. Plan for financial emergencies

Renting comes with its own set of unexpected emergencies, from tenants suddenly vacating a property to their calling you on a Sunday about a broken water heater. These can be tough expenses to bear, and as a landlord, it will behoove you to set aside funds for such situations.

5. Get appropriate insurance coverage

There’s always the possibility that your tenants or one of their guests might have an accident or damage your property. You could also experience a loss of rental income due to an unforeseeable disaster. The proper insurance may cover these things along with legal fees if you end up taking your tenant to court.

For some, becoming a landlord is all about on-the-job training. It can be a challenge, but in the end, renting out your extra space can help you reap financial benefits.

- See more at: http://www.trulia.com/blog/5-things-to-know-before-you-rent-out-your-home/#sthash.kjis2DGg.dpuf