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Howard Harris Real Estate Expert

Mortgage Rates



With All The Negative Housing Reports Everybody Should Just RENT . . .Right?

Jun 06

filed under: Buying A Home, Market Conditions, Real Estate

So here are the current scary words . . . double dip, new cycle low, prices slipped, and shadow inventory are just a few.  Then there’s Case-Shiller, Realty Trac and a host of other housing experts and analysts  that put out their “the housing market is screwed” reports. To top it off the media eats up these reports and blasts them all over the radio or the evening news because God forbid you missed hearing about it on the internet or in your local newspaper. Oh yes, lets not forget the charts, you know the ones with the “peaks and valleys” but mostly valleys. OK, I give. . uncle. . .  I get it.  The housing market sucks and nobody should ever buy a house ever again. Everybody should RENT. . . right?

Surely it makes no sense to buy when prices and interest rates are at all time lows. Also why would you want to compete with all those investors that are buying up properties by the dozens. Idiots I’m sure. By the way they’re glad you have made the decision to rent and not buy. They love the fact that you will rent from them and pay their mortgages. Sounds like a plan huh.

Then there is the benefit that you don’t have to worry about the expense of taking care your own home. Look at all the money you’re going to save. All you need to do is just make that rental payment every month, everything’s cool right? Excuse me everyone for a moment, this is a bit embarrassing having to leave my post and go and talk to Mr. Renter. All under the heading of being a good Realtor® and covering all bases you could say. I’ll be right back. .

Mr. Renter how are you, how’s it going. . loving that rental I suppose.  I’m sorry you have how many dogs, two German shepherds and your landlord just found out about them? I see and its clearly written into your lease no dogs over 25 lbs permitted. Hmmm that’s definitely a problem. What’s that, your wife hates the color of the house and it doesn’t go with any of  your furnishings? She wants to paint the interior a few different colors and your landlords says “no can do”. Yeah, well you are a renter ya know.

OK I’m back so let’s continue on. Yes that interest rate deduction on a mortgage has its advantages and maybe you will take a hit on your taxes next year because your rental payment is not deductible. Still ya just don’t have that headache of owning a home. You were smart not to buy, too many scary things being said about the housing market. Oh shoot here’s another renter friend I need to talk to.

I’m sorry did you say your landlord is raising your rent by how much?  He’s raised it for the last two years. Damm that hurts. Unfortunately, I just can’t help you with this one. Yes I understand you could own something for the amount of rent you are paying. Yes I know the utilities can be high . . . how old did you say his AC unit is?

Anyway as I was saying, you’re free as a bird when you rent vs. owning. When your lease is up, you can choose to move or stay. If you’ve been a good tenant surely the landlord will renew your lease. You don’t have to worry about what’s going on in the housing market, it’s just not your concern anymore. Well shoot here’s another renter call, I better take this. I think you all get where I coming from don’t you?

Mr. Renter so nice to hear from you.  Yes it has been awhile since we last spoke. Oh that’s really too bad, so your landlord decided to sell. Oh I know those 48 hour tenant notices to show the property are really bad. How long did you have to put up with that. . .six months, ouch!  So how soon is the new buyer closing and when do you have to be out? Sixty days, where are you going to move to now?  Really, you don’t say, hmmm . .  you want to buy something instead of renting? Sure we can make that happen for you.

Just beware though that the market is trolling at the bottom right now with a few fluctuations now and then. Plus you know there’s still all that negative news out there. Oh I hear you, “been there, done that. . .RENTING is just not for everyone”.

Written by Howard Harris