 Big Problem- Income is less than cc debt, utilities, mortgage, car payment; no money left over for anything!? |
| Both my husband and my income is less than our debts, this doesn't even include food and gas! All of this due to our cluelessness when we bought our home with no money down, 100% financed, 3/1 (... |
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 Why can't I get a tenant? |
| I've had my rental house listed for a month. So far, 5 people have eagerly inquired, and 3 have come to see it. I know someone will rent it at some point, but I'm frustrated at the lack of ... |
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 When applying for mortgage? |
| how do banks work out your annual income? i have three payslips. does it matter that it shows basic hours, extra hours and bonus hours separately? my emplyment contract states a minimum of 20 hours ... |
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 Removing someone's name from the Deed to the house? |
| I'm needing information on how to remove my "x"'s name off the deed to the house. She has since moved to another state. I have asked her to quick claim her name off the deed and I ... |
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 Is paying 50% of your take home income to renting an apartment to much? |
| I owe nothing to anyone. No CC or School bills. All I need is the usual: Cell phone, food, personal cares (toothpaste, deodorant) , Cable/modem bills. Or is this amount forecasting trouble?... |
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 Is it a bad idea to buy a 1 bed/1 bath home? |
| I'm moving to the northern Virginia area, and I'm looking to buy a condo or a small home. It's just me, so I figure a 1 bedroom and 1 bathroom condo or house would suffice and it'... |
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| The power company is in the process of installing new- bigger- power lines behind the houses. Due to problems with encroachment, they required the storage shed in the back of my rental property be ... |
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 Nice places to live in the UK? |
| We are a couple in our mid thirties with a toddler and cats. We are temporarily in London, trying to decide where to live in the UK. We used to happily live in Brighton (in a nice 3 bed Victorian ... |
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 Tenancy Agreement? |
| Can a tenant move someone else into the property if that person's name is not on the tenancy agreement?... |
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 Is bigger always better? |
When it comes to houses?
I see so many people bragging about the size of their house but quite frankly I prefer a smaller house; 1-2 bedrooms, 1 level, but with all the amenities. Understandably ... |
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 Too young to live alone? |
| I am 19 years old and considering renting/moving into a house by myself. I currently live between my parents’ house and a share house, but I find it difficult to stay at either house for more than ... |
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 My father passed away recently and made me executor in his will but he didn't sign it? |
My sisters and I don't want to sell his house and I am the only one able to move in. We all agreed on this. How do we split the inheritance of the house 3 ways? Live in PA
Additional D... |
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 How can i know if a rent to own landlord is legit? |
Additional Details
there is no lease agreement im attempting to find a place the is a rent to own and there is a company around here that does that and i want to check them out.... |
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 When making an offer on a house how low should i go? |
| We have just seen a house we like its up for a guide price of ÂŁ209,995 what should we offer? it is a new build not yet finished inside. we are in the uk.... |
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 My landlord gave me 30 days notice can he still evict me 4 non payment even if he's been paid by then I'm n NY |
| I was withholding rent because he failed to make necessary repairs. When he did make repairs, I gave him partial payment of back rent and told him that I would give him the rest next month when the ... |
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 I would like to buy a house by June. How soon should we start looking at houses? |
| We are in an apartment now and signed our lease for 7 months since we are expecting. I am in a masters program and hope to find a job once I'm done school. We already have a realtor we will work ... |
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Teufelhunden361 | What's better for investment purposes? Buying houses/townhouses? Or just buying land? |
I just recently bought my first townhouse, using it as my primary residence. I'm going to rent out the two rooms upstairs, while taking the nearly-finished basement as my own room. After I get my taxes back from my first year's payments, I would like to buy another property so I can take advantage of the tax break on the mortgage interest for two properties. OR I can buy it, fix it up, and sell it again for a quick profit.
Any ideas? I don't want to be naive about these things. |
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trblmkr30
 |
The above answers are all good, just keep in mind one other thing - it sometimes takes as much as 50% down to get financing on bare land, whereas you may be able to get an investment property for nothing, or maybe 10% down.
I really like the idea of moving into a place, fixing it up over 2 years, then selling with no capital gains. Also, you can move out of this property, rent it, and move into the next one - you'll have up to 3 more years to sell the one you moved out of (as a principal residence) before you have to pay taxes on the gains. Remember, though, you can only sell one principal residence every 2 years - meaning you can't sell two at a time to take all the gains tax-free and get a bigger home.
Good luck!
Sean |
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Thrasher
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Land is only a good investment if you plan on renting it or building on it. Trying to flip it wont' work unless you can get at a bare minimum, 10% more than you paid for it.
Also, you can only deduct the mortgage interest on your Schedule A on your primary residence. On any other rental properties it just goes as an expense against your passive income.
Buying rental property is a great way to build wealth. You get someone else to pay the mortgage, just make sure that you get enough in rent to cover all the costs. Don't lose money every month just to gain equity in a property. The tax laws have gotten tighter on passive losses and will likely get more so. |
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Pete
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Buying land is not a good investment unless you plan to build on it. If you do plan to build on it, it's probably the best option, depending on where that land is.
If you're going strictly house vs. townhouse, you're usually going to get the best return on a house, since with a townhouse you're at the mercy of the neighbors and the association that runs the building.
Buy the worst house on the best block. Make some improvements, and you'll never go wrong. |
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fixbackpond
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l would take a coarse at your local, you will end up in a crap shoot otherwise |
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sirdaz_uk
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you can't go far wrong with property, unless you're an idiot! |
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Sunny
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I would say land. But if you can buy another place and fix it up yourself so it would't cost you alot then that's even better. |
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SAND·n·SUN
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You could try house flipping. Thats when you buy a very cheap, run down house and fix it up and sell it for profit. (There's a show on TLC about it). A guy bought a house for $450,000 and sold it for $674,000...not bad for 4 months of work! |
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Funchy
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If you buy & resell the home in just a few years time, be careful. With closing costs on this house & your new home, realtor commissions, and other expenses you may not make much. Talk to a realtor to get a good idea of what your property is worth.
I'd take it slow when you do the rental. Renting can bring in money but it's a PITA. People who rent don't take care of things the way they would if they owned it. Expect to spend more in maintenance, painting, cleaning, etc than you would otherwise. Also don't be suprised if one trashes the place, bounces their rent check, or vanishes without warning. Not that all renters are bad, but do be prepared.
To buy the 2nd house you'll also need something for downpayment money if you expect to qualify for competitive financing.
Why not get the rooms rented and see how that goes? You may find you HATE renting to others, or you may love it. And in a year you can also reevaluate based on current market value of this home, mortgage rates, and the economy. |
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SPOILEDROTTEN516
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buy some land and you know you wont have to worry about anything or anyone |
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Info_Junkie
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The other answers are all good. I come froma mortgage background. One thing you may want to consider is that IF you live in a home for 2 years, then any profit from the sale of that home is tax-free (i.e. not gain from sale).
Thus you can do the "slow" flip. Each house you buy (MUCH better than townhouses) you live in for 2 years, fix it up to increase value, sell, and invest the profits in a NEW property. |
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