Wednesday, February 17, 2010

BUYING vs BORROWING

Lately there has been a lot of talk in the media about buying versus renting. Here is my two cents on the subject.

I look at it as buying or borrowing. When you rent a home you are borrowing it for a set period of time and then you return it. Borrowing can make sense for some.

When buying, you are actually paying for something that you will keep or sell. With the current
economic conditions some people are paying for a home that has lost value–like when you buy a car. Of course you have to have transportation and a place to live. So even if the value is no longer as high as the purchase price–does it make sense to walk away and go borrow a home? When you borrow, you get no deductions and you are not paying toward owning. Remember– you have to live somewhere.

Historically property values have always gone up. And if you know someone in trouble with their home, give them the resources below and/or have
them call us. If we can help–we will.

Borrowing or Renting:
  • More fixed costs for the term of the lease
  • Not gaining equity, but not losing it either
  • When the lease is up, you can just move
  • Less work in maintaining a rental
  • Limited ability to personalize your living space
  • No tax advantage to renting... only for your landlord!
Buying:
  • Tax advantages attached to home ownership
  • Variable costs
  • If you want to move, home generally must be sold
  • Over time, the mortgage balance decreases and equity builds
  • The ability to remodel and redecorate the home to match your needs and tastes
  • Pride of Home Ownership!

Helpful Resources:

OPEN DOOR COUNSELING CENTER
34420 SW Tualatin Valley Hwy
Hillsboro, OR 97123-5470
503-640-6689
866-640-6689
www.opendoorcc.net

ACORN HOUSING
5102 SE Powell Blvd.
Portland, OR 97206
503-788-9989
www.acornhousing.org

AFRICAN AMERICAN ALLIANCE
FOR HOMEOWNERSHIP
415 N. Killingsworth
Portland, OR 97217
503-595-3517
www.aaah.org

COMMUNITY HOUSING RESOURCE CENTER
2700 NE Andresen Rd. Suite D3
Vancouver, WA 98661
360-690-4496
www.homecen.org

If you need help locating health and human services in the greater Northwest Oregon and Southwest Washington region, 2-1-1 is an easy-to-remember telephone number that helps connect people in need with the community resources available to help meet those needs.

Realty Solutions
503-7020393
www.allaboutportland.com



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