Real Estate Information Archive

Should I rent or should I buy? The renting vs. buying question is one many people encounter at some point. While some view renting as more affordable and less of a hassle, others see the value in owning a home and want nothing more than to rid themselves of difficult landlords or fellow tenants. Although renting may seem easier and less expensive, in the long run, all statistics show that owning a home is a better financial investment. Here are a few ways to consider whether owning a home is right for you.

Today's Economy

While today's economic situation seems a bit daunting for most Americans, there is a silver lining. According to a study in The New York Times, now is a great time to buy for many people because prices are historically low. However, the study also provides potential home buyers with a ratio to help them determine whether buying is the right option: Divide the purchase price of the house with the annual cost of renting a similar one. An answer above 20 means you should at least consider renting, while a ratio below 20 makes buying a lot more appealing.

Length of Stay

How long you plan to stay in the house should also help you determine whether to rent or buy. For example, The New York Times also claims that for most people who stay in their homes for more than six years, buying is almost always a better option, providing them with an average savings of $1,743 per year. If you aren't staying for at least five years, renting might be a better alternative.

Financial Situation

It is true that it takes stronger credit and a larger down payment to get into a home than it did several years ago. However, there are still a lot of options available to first-time home buyers, so don't let your financial situation rule out a purchase. The government offers FHA loans and loans for teachers, officers, firefighters and more. There are also many state programs that can help.

Stability

Finally, consider renting out one room of the new home you buy if you are worried about making payments. However, if you are married and securely employed, chances are that the mortgage payment will be easy to make. If you are temporarily employed or between jobs, consider waiting until you find a more secure job to make this transition.

Why should I invest in real estate?

There are lots of good reasons to invest in real estate. Whether you are looking for added financial security during retirement, want to diversify your investment portfolio, or are interested in a career in property management, investing in real estate can be a smart move. Less dicey than the stock market, and potentially more profitable than annuities, real estate investment has always been touted as having the greatest potential for profit with the least amount of risk. Plus, if you are already a homeowner, the learning curve for property investment is a lot smaller than you’d think.

When will it be a good time to invest?

Despite what you may assume about the state of the economy and housing market, now is the best time to invest in real estate. Housing prices and interest rates are lower than they’ve been in decades, and the once faltering housing market is slowly getting stronger. Right now, we are at that crucial point in investing where costs are down, while stability in the market is going back up. Profits, even fortunes, can be made by those who buy in down markets, positioning themselves for the time when the overall market turns back upward.

What are my investment options?

Real estate comes in all shapes and sizes. The diversity within real estate is another reason real estate is such a great investment option. Determining what kind of property you want to buy and where to buy are key decisions. Partnering with experienced professionals like Ken and Rose Clouse will minimize the risk of getting in over your head, or of making “rookie” mistakes that could end up costing you money or compromise the full potential of your investment.

Who can I trust to help me find the best investment?

Ken and Rose Clouse have a combined 60 years of experience in real estate and business ownership, as well as unparalleled knowledge of New Orleans real estate. Not only are they top producing agents in the area, they are seasoned property investors themselves. They will work tirelessly to help you realize your real estate investment goals of today, while cultivating a lasting professional relationship you can count on down the road.

In August 2005, when Hurricane Katrina was over, the failure of the levee system left 204,000 homes in New Orleans damaged or destroyed. Nearly 80% of all structures in Orleans Parishes suffered from long periods of immersion.  This of course led to a host of structural issues and health concerns.  Anyone considering purchasing repossessed homes in this area should not only consider the benefits of buying a repossessed home but also the pitfalls that are often unique to the New Orleans area.  This is where the expert advice and local knowledge from an experienced Realtor like Ken Clouse can save you time and money.

Interestingly, some of the least damaged structures from the storm are in the areas developed prior to 1900s due to their construction on higher ground. These areas include the French Quarter, an area in which Ken Clouse has lived and worked.  Ken has extensive personal experience in investing and purchasing repossessed homes over the last several years and is happy to share his experiences with you.

Prospective homebuyers are being led to believe, via sources such as television, newspapers, social networks and real estate "gurus" that banks are selling beautiful repossessed homes for "pennies on the dollar”, this is just not realistic.  Remember if a deal is too good to be true it probably is.  That seemingly great deal may have foundation problems, mold infestation, or some other major issue.  That is why it is important to have a knowledgeable and experienced local agent, such as Ken Clouse, to protect your interests and help you determine which homes offer strong value and which ones are nightmares waiting to happen.

Most bank owned homes will sell at a discount, however that discount will only represent the amount of investment required to return the property to good market condition. Experience shows banks will only discount by a small percentage. To find the truly outstanding deals, you need to research and have time, money and energy invested into the process. Real estate is a long term investment that will pay off in the future if done correctly.

The Repo world in Louisiana is full of pitfalls and hazards for the untrained eye.  There are great values to be found but it takes experience and knowledge to find them.  If buying a repossessed property is part of your investment strategy, you will benefit from Ken Clouse’s years of experience and knowledge of the housing market in New Orleans and many the surrounding communities in the area.