There are basics truths that everyone should understand about real estate. Succeeding this article will be a multi-topic list of what the average person should understand about real estate.
- First, Under all is land
- Whether you own, rent, camp or squat you will be living on the dirt somewhere. We in our society have decided that someone owns this land. Ultimately the Federal Government has the underlying title to the all property. In addition there are many government entities that have a finger or the whole hand on your real property. That is generally in the form of tax for the support of public services. They most often are beneficial in the form of emergency services (i.e. hospital, ambulance service, fire protection) and public good services (i.e. schools, utility districts etc.)
- Owning property is more permanent but if you have to borrow to own then you are subject the lender influence. The scripture says, “you are a slave to the lender”. In the old days we used to say, “if you don’t pay, you don’t stay”. Then as time and lender experience matured the terms of loans became restricted severely and more limited substantially. On the other hand should the property appreciate then as owner that appreciation is added to his or her coffer as is principal reduction from loan payments made.
- As a renter you are subject to the landlord. You pay his toll, the rent and may be subject to eviction at any time. You still indirectly pay for the landlord expenses of tax, insurance and repairs whether they happen or not and there is the feeling of the lack of permanency as a tenant. In addition the landlord builds equity in good times from appreciation and if paying a loan with your rent he or she builds equity from principle reduction on the loan.
We will review in the next posting more about the basics truths of what everyone should understand about real estate. In the meantime if you would like to see information on any of the property for sale in Western Colorado you can do so by clicking here.
That’s all the tidbits for now!
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