Monday, October 21, 2013

3 ways tenants lose money


3 Ways Tenants Lose Money


Are you still renting a home or apartment for yourself or your family?

If so, you're losing money. Think about these three ways you lose money by renting:

1. You're paying for someone else's mortgage payment. You're missing out on the appreciation that the property gives to the landlord. Appreciation is a term used in accounting relating to the increase in value of an asset, which means in real estate terms, added value to the property. Over the past five years, houses appreciated significantly, making many new real estate investor multimillionaires.

2. Tenants don't get to freeze their monthly housing expenses like home buyers can. Of course, many home buyers get mortgage payments with adjustable interest rates and their payments go up over time. However, these payments will not go up over the long term like rising rents. Just think about how much an apartment costs today compared to ten years ago. A two bedroom apartment in Lake Elsinore, California leases for 1,000 today. The exact same apartment r

 



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