Tuesday, November 3, 2009
If It’s Options You Want…..
A word from your REALTOR/Bartender/Writer/Mom/Head of Household.
I’ll just say it. This housing market is a total drag.
I have some friends who bought at the top of their price range, anticipating raises and employment to continue on it’s upward trend. I mean we all did. Our job market was too promising for too long. We all but forgot that there could be a slump in the economy.
The more I walk into abandoned homes and trudge through over grown front yards, the more I think how some of this could be avoided. That’s right, I said avoided!
Look here, if you don’t like your house, you’re not trapped in it, even though the market sucks. You have options. First, ask yourself, can you renovate to make it the beautiful home you’ve always wanted? No? It’s not beauty that stops you from loving your home? It’s the sheer expense of it? Then consider renting it out.
Stay with me now.
If you rent your home out, and you can cover your expenses or at least come close, you can then rent, for yourself, a place that better suits your needs (whether you are trading up or down.) Renting may not sound like a “good” idea to you, but if you can’t stay in your home and you can’t sell without shorting the bank then RENT IT!
Who cares if they spill on your lovely carpet or if they break a tile, or get the walls dirty. That’s all fixable (and comes right out of the security deposit, by the way). Don’t get hung up on the fact that your precious home won’t be kept up, cause you can fix that later (with their money.)
Just because you are a home owner, doesn’t mean you can’t be a renter. So once you get your home rented out, you go find a place that fits your needs and rent it for yourself. If you are able to rent for less than you are paying now, then you can lower your expenses.
Here’s an example, if you currently pay $2000 a month for your 5 bedroom home, but you are willing to go down to a 3 bed room rental that costs $1100 per month. You rent your place for say $1800, then your expenses go from $2000 per month to $1300 per month ($200 your not getting to cover your mortgage plus the $1100 in new rent expenses.)
You lower your cost of living exponentially (including lowering your utilities) and you still keep your investment. If you rent in the town where you own, then if worse comes to worse, and you can’t find a renter the following year, you can leave your rental and reoccupy your home. But come in close, because I’m about to tell you a secret: The rental market is doing great. There are more renters looking for homes than there are buyers. Just be prepared to prove to your new tenant that you are up to date on all your house payments and be prepared to have their security deposit in a separate escrow account for their protection in case you default.
Don’t be a victim to a downward financial spiral. Pilot yourself out of it! We need to quit jumping ship!
And now back to your regularly scheduled programming.
Cheap Renovations - See My Home:
Update Your Stairs
Decorating for Children and Adults