Compare the rent on this house to themortgage payment, taxes and maintenance costs that you would like to live in. Thisputs significant floor under housing prices, and has helped to stabilize themarket in the last year or two. People were diving into the housing market and talking up their successes atcocktail parties. housingprices are down considerably and some financial experts are suggesting rentingbecause of baby boomer demographics. Lets compare the two options. If the investorcharges higher rent or takes shorter mortgage term with lower interestrate and lower payment, the house will almost pay for itself.

On cash flowbasis, buying has seldom been more attractive.. So the total monthly expenses would be 1,600 per month. Thisputs significant floor under housing prices, and has helped to stabilize themarket in the last year or two. People were diving into the housing market and talking up their successes atcocktail parties. As we have seen, housing prices have combined with low mortgage rates to make the rent from house fairly similar to the mortgage housingprices are down considerably and some financial experts are suggesting rentingbecause of baby boomer demographics.

If an investor canbuy house and rent it out for more than his total costs, he will buy the house. If wewanted to be exact, we would recognize that the 45,000 down payment could beleft in the bank and earn an interest rate of 5 in GIC which would be 2,250per year before tax and around 1,200 after tax, or around 130 per month. Compare the rent on this house to themortgage payment, taxes and maintenance costs that you would like to live in.

However, if you are reasonably flexible, you should be able tofind house for rent that meets your needs. The question of shelter is easily answered. People seriously believed that if they did not buy housethey would never be able to afford one. Compare the rent on this house to themortgage payment, taxes and maintenance costs that you would have to make if youbought this house or similar one.

At current rates of around 7, the monthlymortgage payment would be approximately 1,200. People seriously believed that if they did not buy housethey would never be able to afford one. If there arentany, its obvious that you have to buy house to meet your shelterrequirements. Adding in 250 monthlymaintenance the total monthly of 1,600 of purchasing the house. This brings us to the second reason for buying house, the investmentpotential. If the investorcharges higher rent or takes shorter mortgage term with lower interestrate and lower payment, the house will almost pay for itself.