Buying Or Renting: Which Is Best For You?
Are you facing this million-dollar question: should I buy or rent my next
place? If so, you're not alone because this question is commonly up for
discussion among millions of people looking to move. Both buying and renting
have unique advantages but it really boils down to a few things, including
where you see yourself in a few years. Let’s discuss some of the benefits of
buying and renting so you can get an idea of what you'd like to do.
Buying a home is generally considered a
long-term investment because you will build up equity in your home that you can
use in the future if you decide to sell. But, in order to buy a home, you must
first secure home financing and save up for a down payment that is typically
20% of the selling price. While down payments can be quite costly up front, you
do get to take advantage of some tax incentives like mortgage interest,
interest on home-improvement loans and property taxes.
The IRS allows you to deduct your mortgage
interest when it comes time to complete your taxes and all of that interest is
deductible unless your home loan is more than $1 million. If that's the case,
the IRS will limit your deductible interest, but you still get to take
advantage of a tax break. At the same time, the IRS will also consider the
interest on home-improvement loans fully deductible, up to $100,000.
taxes are deductible on your federal taxes, but you'll need to do
an itemized deduction during tax season.
there are a few other tax incentives when it comes to buying a home, it is a
situation to carefully consider when hunting for your next place to live. Homeowners
have the opportunity to make adjustments, repairs and improvements as they see
fit and will cover the expenses out of their own pockets. On top of that, most homeowners
plan to live in their homes for a number of years because their mortgages may
have 15-, 20- or 30-year terms. If they choose to move at some point,
homeowners can sell their home by listing it on the real estate market.
townhomes, houses, apartments or new condos in NJ is little
different than buying. Renters are unable to take advantage of some of the tax
incentives associated with buying homes; however, they do have other desirable
attributes to consider. First, renters typically avoid large down payments when
moving into a new residence because they are not financing the home. While they
may be required to put down a deposit, it's generally much less up front and
they can get it back at the end of their lease if everything is in good
of leases, most lease agreements span a 12-month time frame, which means a
renter must resign a lease if they want to continue living in the space for
another term. This is where buying and renting are different, because a
homeowner doesn't have to wait out or extend 'lease' terms, while a renter must
make the decision of staying or finding a another place to live. But at the
same time, it's easier for a renter to move from place to place because they
aren't tied down to selling a home and can essentially pack up to leave.
thing to consider when renting is that most repairs and maintenance are
included in the rent you pay each month. If something breaks or the roof leaks,
the property manager is responsible for the bill. However, on the down side, a
renter can't alter floorplans or take on extensive improvement projects (add an
addition, upgrade kitchen countertops, etc.). While they may be able to paint
the walls for a more personal touch, much of the home’s existing features and
amenities cannot be changed by renters.
to buy or rent can be challenging, but the above information can help you make your
decision. If you prefer to have complete control over future renovations or
improvements, you might want to buy and take advantage of tax incentives. If
you would rather have maintenance-free living, you might want to rent. Take
time to weigh your options and you will find your perfect solution!
Labels: Buying or renting, lease, new condos in NJ
2016 NJ Commercial Real Estate Outlook
look at the 2015 real estate market, both commercial and residential markets
did generally well in New Jersey, and 2016 seems just as promising. There are
quite a few factors as to why the real estate market will continue to see
positive strides throughout the next year. Read on to find out more about the
2016 commercial real estate outlook!
rate has a lot to do with the economy in general, and being that as it is, it
is influencing the growth of commercial real estate. The 2015 year-end report
from the New Jersey Department of Labor and Workforce Development released
positive notes about the job sector, which translates into an increase demand
in commercial real estate. According to the report, the
Garden State is experiencing the strongest employment growth the private sector
has seen in the last 15 years, with employers adding nearly 50,000 jobs in the
last four months of 2015.
To put it
in perspective, non-farming employment grew by 224,100 jobs since February 2010,
which marked the recessionary low point for employment in the private sector.
On top of that, the unemployment rate in November 2015 continued to decrease to
5.3 percent, following a significant drop of 1.2 percent points since May 2015.
With that said, more businesses are adding more employees to their workforce
and that can translate into the need for larger workplaces to accommodate their
growth. If trends continue to show growth throughout 2016, commercial real
estate will reap the rewards.
The Year Of 18-Hour Cities
Earlier in 2015, we pointed out in
another post, Making The
18-Hour Adjustment, that 18-hour
cities are emerging as urbanization sweeps through smaller towns and
communities. To put it simply, 2016 will be the year for a boom in the 18-hour
city according to Realty Today.
Why? First time homebuyers will come from one of the largest home buying groups
– Millennials – that account for over 80 million individuals born between the
1980s and early 2000s. This group of buyers will be scooping up residential
housing in the suburbs but need those communities to fit their lifestyles.
Millennial generation isn't working the traditional 9 to 5 job, anymore and its
members want their cities to accommodate their schedules. Businesses are making
the adjustment to reap the rewards of their patronage and many are looking for
localized commercial hubs to take advantage of this growing suburban explosion.
Expect to see a rise in commercial properties for lease
around small to medium sized cities throughout New Jersey that have extended
Fast Fashion & Smaller Retailer Dominance
The ways Americans spend their money
has certainly changed post-recession and that has also challenged the old
'norms' of shopping plazas that used to be dominated by large and in-charge department stores. Americans tightened up their
wallet, but after roughly 8 years of penny pinching, their money is burning a
hole in their wallets and they are looking to shop.
longer are they looking to shop at big-named department stores, they are
looking for low-cost shopping gratification and fast fashion that can satisfy their desire to shop while keeping a
budget in mind. What's that translate into? Commercial spaces filled with numerous
niche retailers and fast fashion outlets that meet the needs of today's
shopper. For the commercial real estate market, you can expect to see a rise in
many smaller scaled stores and an increase in competition to lease out hot
properties in desirable locales.
commercial real estate landscape seems to be quite promising for 2016 and with
the above points, now is the perfect time to jump on some commercial properties
in New Jersey.
Labels: 2016 real estate overview, commercial properties for lease, commercial real estate outlook