Why Buying A Home May Be More Advantageous Than Renting?

Although some people find renting a more convenient option, real estate experts still recommend home ownership because of its many advantages. Consider the benefits and risks of home buying vis-à-vis renting. Especially when you think about your retirement years, you will realize that investing in a home will be the smartest decision you will ever make in your life.

Several studies show that having your own home can indeed be beneficial in various ways such as lower chances of teenage pregnancy, better education for your children, and more annual income for your children. But these are just some of the advantages of owning a home. Here are more reasons why you should buy yours now:

1. Housing expenses are more stable with mortgage payments than rental payments.
When you buy a house, your mortgage payments are most likely to remain as they are throughout the home loan period. In contrast, rental fees usually increase each year. Especially during inflation, when prices of goods go up, people who rent are bound to lose more money than homeowners.

2. You get large tax savings. Since mortgage payments consist mostly of property taxes and interests in the first few years, you can expect huge savings when you deduct these fees from your local income and national income taxes-that is, if you decide to purchase your own home.

3. Home ownership allows you to consolidate your other debts. You can do so if you need to refinance your mortgage loan and get out of debt faster. The interest on your debt consolidation can be deducted from your tax as well. You won't get this benefit from renting an apartment, house, or condo unit.

4. You can build equity in your own home. When you rent, the money you pay monthly goes only to your landlord. But when you buy a home, your mortgage payments become your real estate investment. How does it happen? Generally, the value of properties increases over time. And when your property gets more value, you can earn money by selling it. Paying your mortgage loans is like investing your money for future use such as for your retirement fund or for the education of your children.

5. The house is yours! Because you own the house, you have full control over everything that concerns it: the interior design, colour of the walls, the number of guests you can accommodate, gardening and landscape design, among many others. You can have as many pets as you want. You won't need to ask permission from the landlord about changing the look or remodelling the house. No one will force you out of your house or engage you in a violent altercation if you simply want to change the kitchen wall's colour from white to neon green.

Remember, a home is the single biggest purchase that you might make in your life. Before you get a home, you have to know the responsibilities that go with it. The common risks involved in buying a real estate property include decreased value of the home, foreclosure, and increased expenses of maintenance and/or renovation. Thus, weigh all the benefits and risks to be able to arrive at a wise decision.

Author Peter Jordan is a realtor with Prudential NJ Properties in Westfield New Jersey. For more information, visit http://www.livinginwestfieldnj.com 

A Beautiful 50,000Sqm of Beach Farm for Sale at Msanga Mkuu

This beautiful unsurveyed and unserviced beach farm is on the amazing white sand beach of the East Coast of Msanga Mkuu in Mtwara with an area of approx 50,000sqm. The coastal zone has been earmarked for touristy development and is perfectly suitable for the development of a high class Hotel or luxury Holiday Villas. It has a stunning stretch of approx 130m beach front. The plot is on a small hill ensuring that from every spot you have an amazing sea view, and the beach front has a gentle slope with a  nice flat plain down to the fine white sandy beach of Msanga Mkuu. This is one of the most beautiful plots that is left on the famous East Coast of Msanga Mkuu in Mtwara. Price on request!!

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Two Merged Commercial Plots are Available for Immediate Disposal

Two beautiful merged commercial-residential plots each measuring approx 2200Sqm, located along Shangani Road. The plots have three semi finished properties with a fore building designed for trading/shopping activity and a cottage pub for recreational with unfinished public toilet and one big bed room. Its strategic prime location from the Indian Ocean approx 300mts, and from the central town area gives its wealthier suitability and ideal for developing a small housing/shopping complex, but also suitable for multi-storey office building and/or hotel apartment. The property is now available at a reasonable disposable price of TSh.500 Mill.

 

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5 Factors Affecting Real Estate and Property Development in Kenya

As HomesKenya magazine sat down with Mr. Daniel Ojijo, the Executive Chairman of Mentor Holdings, to speak about what to expect in the real estate sector in 2013. The following are five key factors that he believes will affect the growth and development of the sector this year.

1 Housing Demand
Despite challenges that began in late 2011 owing to a weakened shilling, the prospects for the real estate sector in the long-term appear promising. For investors who are eyeing the market now, it is always safer to conduct thorough due diligence on properties of interest so as to avoid fraudulent cases. Nevertheless, the huge demand for housing will continue in 2013, owing to the fact that there is still a huge housing deficit in this country. The mortgage market is set for tremendous growth over the next decade, both in Kenya and the region. The key factor is the rates of interest charged

2 Government Incentives
So far, the incentives introduced have not been sufficient enough to make housing affordable to the lower income group where the demand is high and the supply is critical. As was the case in 2011, the government has plans to offer more incentives in 2013, to accelerate growth in the property market. Budgetary allocation will be enhanced as well as sourcing of funds from development partners to assist in providing cash needed to stimulate construction of affordable houses to meet growing demand.

In 2010, the Ministry of Housing revised the incentives although this may not have been enough. Talks on how to provide more incentives in the sector have been held with Treasury and there’s hope that this will be captured in 2013. Current incentives should be expanded to cover more areas. This is geared towards stimulating more investments as well as taming imbalances in the market.

3 Interest Rates
The interest rates are expected to reduce as pressure is put on the Central Bank and other banks , investors, developers, bank customers and other stakeholders. There is a lot of competition that banks are facing from SME financiers and money-lending is becoming a popular business outlet at lower interest rates than the mainstream banks have been offering. Co-operative Saccos are giving banks a run for their money and Chama Accounts are opening everywhere in the country. With this kind of healthy competition, interest rates cannot remain high much longer.

4 Land Regulations
There is plenty of lobbying by non-government bodies and the CIC is in the process of implementing the land regulations. We expect the changes to come gradually and even though it has taken more time to make the bills into Acts of Parliament for some of the land bills and hence the implementation of the same, we consider the timelines earlier set to have been too short because they did not give ample time nor the necessary release of funds for the grass root awareness movement. We believe that laws are made for the people and that the people should have a chance to understand what they entail. We also agree with CIC that rushing to meet a deadline will not necessarily ensure that good laws are created. The regulations are necessary but all possible input from stakeholders must be collected and analyzed thoroughly before they are made into law.

5 Rates of Inflation
Recent reports indicate that the rate of inflation has also started to reduce. According to the Finance Minister Uhuru Kenyatta, Kenya plans to cut inflation to five percent by 2014/15 through austerity measures to reduce its budget deficit, accompanied by a tight monetary stance.

Statistics show that year-on-year inflation rose for 13 straight months to peak at 19.72 percent last November, before easing to 18.93 percent in December after the central bank raised rates aggressively and good rainfall pointed to an improvement in harvests. The shilling fell against the dollar for most of last year mainly due to a widening trade gap, amplified by global increases in fuel prices and a drought that ravaged the Horn of Africa, feeding through to higher inflation rates in the region. The government aims to lower its budget deficit to 5.1 percent by 2014/15 from this fiscal year’s 6.1 percent. The decrease in cost of fuel should see the cost of inflation also come down considerably.

Eremi Investment House; Office Space for Lease in Mtwara

A contemporary modern building comprising three storeys each measuring approx 260Sqm, located at Raha Leo Street along Tanu Road. The building is adjacent to Camel Oil Station and opposite to Tanzania Revenue Authority (TRA) Regional Office. The premise is ideal for office space with a ground floor suitable for Banking. It is situated at the inner CBD area with only 10 minutes drive from the Airport. Each floor is adaptable for 5 or 6 smaller self-contained office suites or as 1 large office area, all standing on a prime 1 acre property. Its architectural and strategic position gives a rewarding emphasis of the supreme panoramic views of the main road, the upper scenery and the spectacular view of the town area. The lettable space has its unique features and value added services which include: A generous parking space, water reserve, private toilets, security guards with provisions for air conditioning and back up generator. Eremi house is now on the final completion stage but ready for occupation. Rent $15/Sqm/Month.

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