Why do real estate agents always ask me whether I am buying property to live-in or as an investment?
This demonstrates to the vendor that they are working hard to sell their property and can help the agent to convince the vendor to lower the price of the property if it doesn’t sell. Knocking a few percent off the price makes very little difference to the agent’s commission, but makes the property much easier to sell.
What is the difference between a real estate agent and an investor?
Working in real estate is exactly what a real estate agent does. He/she only deals with real estate transactions and not the properties themselves. On the other hand, a real estate investor is the one who makes a living by purchasing investment properties and using them to generate money in the long-term.
How do you know if a house is a good investment?
One popular formula to help you decide if a property is good investment is the 1 percent rule, which advises that the property’s monthly rent should be no less than 1 percent of the upfront cost, including any initial renovations and the purchase price.
Who makes the most money in real estate?
The 6 Highest Paying Real Estate Careers with Good Salaries
- Home Inspector. If you already have a good main job and are looking for a part-time gig to maximize your income, you can work as a home inspector. …
- Real Estate Lawyer. …
- Real Estate Broker. …
- Commercial Real Estate Agent. …
- Property Manager. …
- Corporate Real Estate Manager.
Is renting always a waste of money?
No, renting is not a waste of money. Rather, you are paying for a place to live, which is anything but wasteful. Additionally, as a renter, you are not responsible for many of the costly expenses associated with home ownership. Therefore, in many cases, it is actually smarter to rent than buy.
What is considered house poor?
When someone is house poor, it means that an individual is spending a large portion of their total monthly income on homeownership expenses such as monthly mortgage payments, property taxes, maintenance, utilities and insurance.
Is it better to rent or buy 2021?
renting for any year, but more so in 2021 because housing prices are on the rise,” said Jenna Lofton, a New York City-based stock trader and investor. She said homeowners enjoy lower monthly mortgage payments, while renters get the savings that come from not paying property taxes.
How long do you need to live in a house to make it worth buying?
three to five years
Key Takeaways. Ideally, you should stay in a home for at least three to five years to break even on your mortgage. Your mortgage payment should be 25% or less of your pre-tax income.