Rent Or Buy – Either Way You’re Paying A Mortgage

Courtesy of Keeping Current MattersDSC_0001

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As a recent paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

Whether you are looking for a primary residence for the first time or are considering a vacation home near the beach, owning might make more sense than renting since prices and interest rates are still at bargain prices.DSCN1664

Rental prices in Naples are rising very quickly as our supply dwindles.  Both annual and seasonal rental rates are increasing each year.  If you are thinking of an investment, Naples is the place to consider.  You can purchase a property, derive seasonal income from it during January, February and March and enjoy it yourself in the off season.  Plus you have an investment that is increasing in value.  Sounds like a win win to me!  Call me today so I can help you pick the perfect seasonal rental property for you and then rent it for you during season 2015.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a good investment!

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