Rent Or Buy: Either Way You’re Paying A Mortgage!
There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”
With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:
“Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015.
Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates that homeownership is still within reach for renters.”
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.
Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.51% last week.
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.
Source: Keeping Matters Current
ORLANDO, Fla. – Aug. 6, 2018 – When a tenant moved out of the College Park home Ruth Zimmermann grew up in, the Los Angeles woman decided it was time to hire a Property Management Professional.
“You don’t know what you’re going to get,” Zimmermann said.
Technology is making it easier for owners to keep tabs on their properties as little or as much as they want, whether working with a management company that’s written its own app or a traditional company using common software.
Zimmermann uses Great Jones, a Fort Myers company that manages about 80 homes in Central Florida – and, like competitor Realty Medics, created its own software.
“They’re good at details and communicate with you frequently,” said Zimmermann, who also found the company to be the most plain-spoken of the ones she looked into.
Self-managing a property can work, said David Ritland of Orlando, who does that with a home he owns close to where he lives. But he turned to Realty Medics to manage a property in Deltona.
‘Farther out, when it’s going to cost me two hours round-trip to go to a site, that’s very much so worth the monthly fee to get the property managed,” said Ritland, an engineer at Siemens. Ritland said using a property manager also enables him to consider buying profitable properties that might otherwise be too distant to manage.
“The tenant has a portal they can log into, they can say, ‘Oh, something’s wrong with the microwave,’ ” Ritland said. “The next day I’m getting an email from property management and they’re saying, ‘Hey, we’ve got this idea, can we send somebody out to take a look?'”
Software such as Appfolio can be purchased by traditional property managers looking to eliminate pen-and-paper ledgers or handwritten tenant applications on clipboards.
“It takes a tenant 15 to 20 minutes to fill out an application, and it takes us less than a minute for the initial screening,” said Raul Veitia of Belmont Management Group in Winter Park and a former officer with the local chapter of National Association of Residential Property Managers.
It also enables tenants who want to pay in cash to go to a convenience store and show a code in their cellphone that can be scanned by a cashier and enable the payment to post immediately.
David Diaz, head of operations at Florida-based property management company Great Jones, talks about some useful tips for people who are thinking about being a landlord of a rental property for the first time.
“Appfolio basically can act as your accounting software, marketing software, inspections for the property have templates, and it generates reports for owners,” he said, including year-end forms such as a 1099 for taxes.
Property management is a fragmented industry because it’s localized, said Ben Sencenbaugh, president of Realty Medics, which built its own software after he joined the Orlando-based company about five years ago. It’s grown from 200 managed properties to about 900 in that time, he said.
“To get to 300 or 400 was unimaginable a couple of years ago,” said Sencenbaugh, an Embry-Riddle graduate. “We built our platform so the staff has visibility of what needs to be done – we have dashboards up on the walls in the office to show things that are overdue, things we need to attend to, high-priority items.”
Great Jones head of operations David Diaz, a UCF graduate, worked previously at Waypoint – a company that works with real estate investment trusts and manage thousands of properties. That enables such companies to keep costs low by negotiating lower expenses for repairs or buying in bulk for parts and materials or for appliances and air conditioners.
That’s part of Great Jones’ model as well as it manages about 80 properties in Central Florida and about 200 statewide.
“Property management, for whatever reason, has been a slow-to-evolve industry,” he said. “… We want to provide that same economic advantage of scale.”
Diaz, Sencenbaugh and Veitia all stressed that no software can replace personal attention for either tenants or owners. That keeps properties well managed and keeps management companies growing – as word of mouth remains the most important factor to bringing in clients.
All three companies say their business mostly involves landlords with five or fewer properties.
“It’s really about the trust factor, then having people review it and tell their friends,” Sencenbaugh said.
© 2018 The Orlando Sentinel (Orlando, Fla.), Bill Zimmerman. Distributed by Tribune Content Agency, LLC.
This is an important read when it comes to why homeowners should hire Real Estate Agents to care for their Property Management needs. At Bardell Real Estate, we offer top notch service for Property Management. Our owners and tenants have access to their online portal to effectively communicate with Property Managers, Admins and Vendors. The portal also give the tenants a great place to pay their rent, easily, and input work orders for their rental. Are you interested in receiving a Free Rental Analysis on your Orlando Vacation Home? Short term rental often offers a different spectrum from Long Term, maybe it’s time to try it out. Contact us today to obtain your FREE RENTAL ANALYSIS.
ORLANDO, Fla. – July 10, 2018 – A RentCafe study that looked at average rents in many Fla. cities found that Hollywood (up 9.6 percent) and Orlando (up 8.4 percent) had the greatest year-to-year increases. Out of 19 Fla. cities included in the study, only Davie saw a year-to-year decrease (down 0.3 percent).
However, the study suggests that Davie’s average rents may be turning around. The month-to-month stat finds that they increased 0.3 percent in June. On the flipside, Coral Springs, which saw a 1.9 percent yearly increase in average rents, was the only Fla. city in the study to see rental prices decrease month-to-month in June (down 0.3 percent.)
The overall average rents for the study included studio, one-bedroom and two-bedroom apartments, which did not necessarily move the same amount. In Hollywood, for example, a one-bedroom apartment rose an average 7.1 percent year-to-year, while the average two-bedroom rose 10.9 percent.
Nationally, rents in the 250 largest U.S. cities rose 2.9 percent and reached an all-time high of $1,405. In Florida, average rents ranged from $1,018 in Lakeland to a high of $1,861 in Fort Lauderdale.
For a complete list of the 19 cities – average city rental prices by number of bedrooms plus month-to-month and year-to-year changes – visit RentCafe’s website. To view cities within the state, select “Florida” in the chart at the bottom of the page.
© 2018 Florida Realtors®