Is it better to buy a foreclosed house or rent?

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(0) | asked by: CC Robinson | share | 31 months ago | Report

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answer by Edward Urbaniak   |   Visit My Website   |   Contact Me
Another consideration, is what interest rates will do in the future. I purchased my first home in 1996 with double digit interest rates! If you don't buy while interest rates are low, a future purchase at a higher interest rate WILL cost you more (maybe double or more!)
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26 months ago  |   Report   |   share
Joseph Gendron
answer by Joseph Gendron   |   Visit My Website   |   Contact Me
Renting right now has been a great choice for me. Even foreclosures are a nightmare.
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26 months ago  |   Report   |   share
answer by Vivianne Rutkowski   |   Visit My Website   |   Contact Me
It is almost always better to own than to rent, as long as you plan to stay in the house at least long enough to recoup the closing costs expenses. The best part of purchasing in 2012 are the historically low interest rates, which means your rate will stay THE SAME for the entire term of the loan!!! The rental prices do increase every year, but your mortgage interest rate is locked for the next 30 years (or 15, 20 years if you choose 15 yr fixed or 20 yr fixed). Even in the worst market, at the end of the 30-20-15 years you'll own your home free and clear with EQUITY saved in the house. As for purchasing a foreclosure, it depends on your financing as FHA and VA loans require the property to be in "livable" move-in condition and may refuse to finance some properties, unless you also qualify for FHA 203k rehab loan. As for tax deductions, contact a tax accountant as you can take only standard deduction or itemized deduction (not both). To benefit from tax deduction, your interest expense must be considerably higher than standard deduction to benefit from itemized deduction. In addition to the above, you should make sure you have an Emergency Fund for the unexpected in life to cover at least 24 months of living expenses. Let me know if you have any additional questions.
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26 months ago  |   Report   |   share
answer by Jaclyn Heatherman   |   Visit My Website   |   Contact Me
It depends on the house, in my opinion. Prices have dropped and interest rates are low, but depending on the price of the home you would buy, you may be in the situation where sellers are asking ridiculous amounts for their home because they are trying to recoup as much as they can. I think that NOVA is a pretty safe place to buy as long as you can find renters who will cover your mortgage if you decide to hang on to it.
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29 months ago  |   Report   |   share
answer by Edward Urbaniak   |   Visit My Website   |   Contact Me
It depends upon your situation. It isn't always best to buy or always best to rent. Google on these words buy rent nifty calculator reston It will take you to a great calculator to help you make a personal decision.
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29 months ago  |   Report   |   share
answer by Nancy Alert   |   Visit My Website   |   Contact Me
The answer to this question depends on several factors. First how much work does the property need or is it in move in condition? Do you have the budget to take care of the repairs? Can you qualify for an FHA rehab loan? Is the property in an area where it will appreciate within the next 3-5 years? Will the mortgage payment be the same or just litte more than your current rent? If you can answer yes to these questions then buying is definately the right move. Nancy Alert, Realtor
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31 months ago  |   Report   |   share
answer by Amy Stanley   |   Visit My Website   |   Contact Me
It is always in your best interest to buy especially if you are stable and able to stay in the same location for at least 3 years. Currently, prices and interest rates are low so your mortgage payment could be less than or equal to rent so buying would be better than renting.
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31 months ago  |   Report   |   share
answer by Janine Kirchnavy   |   Visit My Website   |   Contact Me
Let's start with the Tax Benefits of Home Ownership. The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of home ownership. Here’s how it works. Assume: $9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value) ______ $12,577 = Total deduction Then, multiply your total deduction by your tax rate. For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56 $3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate) Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.  -Richard and Janine Kirchnavy
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31 months ago  |   Report   |   share
answer by Adrian Provost   |   Visit My Website   |   Contact Me
To answer this question appropriately, I would require some additional information.
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31 months ago  |   Report   |   share
answer by Greg Ford   |   Visit My Website   |   Contact Me
There a lot of questions involving foreclosures. I think many people assume foreclosure = good deal. But, as some of the answers have already indicated, you shouldn't focus only on foreclosures. A good deal can come from anywhere. So this really is the basic "buy or rent" question. A lot of factors depend on your local area and that particular real estate market. But the short simplistic answer is that if you planning on staying there for more than a couple of years... then buying is almost always better than renting. Financially speaking. Of course there are other things to consider like the fact that there will be no landlord, or rental office, to call when something needs to be taken care of.
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31 months ago  |   Report   |   share
answer by Nancy Alert   |   Visit My Website   |   Contact Me
Buy vs Rent really depends on your market. If you are planning on buying to hold for at least 3 years then buying now could make a very good investment. Currently prices and interest rates are low so your mortgage payment could be less than or equal to rent so buying would be better than renting. Contact a realtor in your area for guidance.
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31 months ago  |   Report   |   share
answer by Kevin Monette   |   Visit My Website   |   Contact Me
Because of the down housing market and all the repossed homes, the old owners have become renters and the rental market has increased their prices, due to this. The same home you would rent for lets say 1,800 your mortgage payment would be like 1,700, if you bought at fair market value. If you can buy, do it. Interest rates are the lowest they have ever been and prices are down, so pull the trigger and become a home owner. Good luck.
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31 months ago  |   Report   |   share
answer by Susan Gibson   |   Visit My Website   |   Contact Me
I would suggest asking a realtor if the market is still declining in your area. In our area it seems like we have hit the bottom and are actually on the incline. With prices and interest rates as low as they are, it is a wonderful time to buy.
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31 months ago  |   Report   |   share
answer by Cheryl Talbot   |   Visit My Website   |   Contact Me
Buy only if you plan to stay in the home for at least 5 years. The longer you stay in a home, the more chances you have for making money when you go to sell it. Buyers should invest. The market has loads of options and the rates are great. That being said, buyers need to stay put. Buying and moving is a thing of the past. When you buy, stay in the home. That's the best advise I can give you here. Thanks and much luck!
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31 months ago  |   Report   |   share
answer by Ray Gernhart   |   Visit My Website   |   Contact Me
If you qualify to rent you would probably qualify to purchase. Interest rates are very low and there are programs I have access to that will allow you to purchase with only $500 down payment. Actually I have 1 program with no money down. Obviously this is less then a security deposit. Please don't hesitate to call me if you want details or have any other questions about real estate. Thanks, Ray
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31 months ago  |   Report   |   share
answer by Troy Sponaugle   |   Visit My Website   |   Contact Me
That is a big question with lots of variables. However, the big answer is that with today's interest rates, it is generally better to buy than rent if at all possible especially if you are going to be stable for more than two years.
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31 months ago  |   Report   |   share
answer by James Li   |   Contact Me
If you planning to stay in the area more than two years should buy rather than rent. Right now it is cheaper to own than to rent. The interest and real estate taxes are deductable in most cases.
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31 months ago  |   Report   |   share
answer by Eric Pearson   |   Visit My Website   |   Contact Me
If you have the ability to buy (meet lending qualifications, down payments amounts, etc.) and you plan on being in the property for an extended period of time, it probably makes financial sense to buy - regardless if it is a foreclosure, short sale or traditional sale. With interest rates historically low and home affordability high, your mortgage could very well be less than you rent payments would be - not to mention the tax benefits, etc. that go along with being a homeowner. Every situation is different though...happy to discuss more in detail to find the best option for you. Thanks!
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31 months ago  |   Report   |   share
answer by Ken Isaacman   |   Visit My Website   |   Contact Me
I would say in today's current financial climate that if you can afford to buy, buy! With interest rates where they are, you may not be able to borrow money as cheaply as you can now, for a long time. Coupled with the fact that you can deduct your interest paid on your taxes, it makes sense to buy if you can. If you qualify for a VA loan, you can purchase a home with 0 downpayment! If you were to rent, you'd have to put up 1 mo rent as security deposit, then an additional month's rent to move in. When you weigh all the factors, buying is almost always better than renting, except in a moving down market, which most experts agree we are not currently in. Of course this will also depend on what sort of foreclosure you're looking at. Contact me if you want more specific information.
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31 months ago  |   Report   |   share
David Mason
answer by David Mason   |   Visit My Website   |   Contact Me
With mortgage rates being at an all time low, coupled with property values being at a multi year low and just starting to increase, it makes no sense to rent unless you plan to stay in the area a very short time. Mortgage payments are lower than rent payments in most communities right now and you still need good credit and income to rent. Also, a large percentage of your mortgage payment is tax deductable. So, unless you like paying for someone else to profit from the upswing in real estate prices, you should rent.
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31 months ago  |   Report   |   share
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