5 Reasons to Buy Instead of Renting

At some point in your adult life you will be faced with the decision as to whether you should buy or rent a home.  You have to pay to live either way but buying a home is a big commitment so you need to be mentally and financially ready to take on that burden.  This is a very serious commitment so if you are still sitting on the fence, here are 5 reasons to buy instead of renting.

  1. Stop paying someone else’s mortgage

When you pay rent every month you are you’re paying money towards your landlord’s mortgage as opposed to your own.  Renting comes with far fewer hassles or responsibilities but it is just another bill.  When you pay your own mortgage you’re building an asset and building equity in your own home instead of someone else’s real estate portfolio.

  1. Mortgage Interest is tax deductible

While there are constantly changes in the tax code where the state and local tax deductions are capped or even eliminated, the tax code still permits deductions when it comes to your mortgage.  It will allow deductions up to a certain amount.  In most cases you will end up paying less taxes when you own rather than renting.

  1. State and local tax deductions

If you live in a state that carries a higher tax burden, New York for example, where you are paying state income taxes, real estate taxes and other taxes.  You need to take into consideration the $10,000 limit and how it shouldn’t deter you from buying property.

  1. Pride in owning something that is yours

When you rent you are just a tenant, you have no responsibilities as far as maintenance goes but by the same token you have no ability to make any changes either.  You may be able to paint the walls but you won’t be able to do basic maintenance either.  You can’t fix a broken boiler or do any other maintenance tasks, you have no choice but to wait for the landlord to make repairs.  If your own home you can take pride in the work you do around your home and it being in immaculate condition.

  1. Customize it to how you want

This goes hand in hand with pride of ownership, as a tenant you have no say about any of the rooms in your apartment.  Often times you aren’t even allowed to paint the walls a different color.  You can do very little to make the home your own.  As a home owner you have carte blanche in how you want your home to look.  You can gut your kitchen and completely renovate, want to change your old tub for a spa tub, that’s no problem either.

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5 Rules for Making Money in Real Estate

Making your fortune in real estate is not as hard as you might think, and it can be extremely lucrative.  Whether you want to sell real estate or become a real estate investor the potential to earn a substantial amount of money is there for you.  However most people give up on real estate way too early, they find it too hard to find leads or the high numbers in real estate scare them off.  But if you want to make it in real estate there are some qualities that you are going to need, let’s look at the 5 rules for making money in real estate.

Mindset

You need to have your head on straight, be clear thinking and focused when it comes to real estate.  You need to believe that you can succeed in this field that you won’t be so easily discouraged and that you can totally do this.  Believing in yourself is harder than most people think, we all suffer from self-doubt but you need to get around that and become determined.   Here is some help getting in the right mindset.

Put in the Work

No matter how you decide to tackle real estate as an agent or investor, nothing is going to get handed to you. You need to put in the work. This isn’t an easy career otherwise everyone would be doing it. You are going to be the one hustling for clients or looking for that perfect property. You are solely responsible for r your own income, so get out there and put in the work.

Get out and Network

Real estate is about making connections.  You will need to start building a rolodex full of realtors, investors, mortgage brokers and contractors.  Making money in real estate is about solving problems and having a network of people who can help you get that done is priceless, whether you need repairs done on an investment property or financing, you need to know the right people.

Learn Everything You Can

Improvement is essential and when you’re first starting in real estate you are going to have a lot to learn.  Find a mentor, read books, tap into experts that you know.  The more you learn the faster you will be able to grow your business.  But…at some point you’re going to have to stop learning and start taking action.

You’re Going to Need Money

The old adage “you need money to make money” is true, the good thing is, it doesn’t have to be your money.  Money can come from many different sources, your own bank account, banks or other financial institutions, partners, private lenders and even hard money loans.  You may even need a combination of one or more to get the deal done.

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