Renting vs. Owning: Pros and Cons You
Should Consider Before You Sign a Lease or a Mortgage
Ready to rent or buy a new place to call home? Don't make this important
decision without carefully considering what's best for you and your financial future.
Eric Tyson, MBA and author of the new book Personal Finance in Your
20s & 30s For Dummies,® analyzes the pros and cons of renting and owning.
Hoboken, NJ (March 2018)—At one time, it was a given that everyone wants to become a homeowner eventually. But now many people are reconsidering whether ownership is all it's cracked up to be. After all, real estate is not appreciating the way it once did, so, today, owning may not be the smart investment it once was. Tax reform now limits the property taxes and mortgage interest that homeowners may deduct. Plus, as more people value having the mobility to pursue jobs and lives in other cities, it's less appealing to be locked into a long-term mortgage. And now many people value the freedom of renting over having a spacious home to call their own. This poses a huge question for twenty- and thirtysomethings: Should I buy or rent a home?
"Choosing whether to rent or buy is one of the most important financial decisions you'll ever make," says financial expert and best-selling author Eric Tyson, MBA, author of Personal Finance in Your 20s & 30s For Dummies® (Wiley, 2017, ISBN: 978-1-119-43141-1, $19.99). "Though owning a home and investing in real estate may pay off well over the long term, renting also has its advantages. To make the best decision, you need to understand your current personal and financial situation and think carefully about what matters to you now and what you think will matter to you in the future."
Tyson says asking yourself some tough questions may help you clarify your feelings about choosing to rent or buy. Questions like: Would I rather pay more and live in a vibrant city, or enjoy a quieter life in a less populated area? Am I sure I want to stay in my current neighborhood, city, or state? Am I planning to start a family—and where do I see myself living when I start one? Do I want to buy a starter home now, or rent for a few years and then buy a larger house later on? Would I rather own a great home now, and have less money overall for travel and leisure?
Next, it's important to carefully weigh the pros and cons of renting and owning before you choose what is right for you. Keep reading to learn the pros and cons of renting and buying a home.
Renting Pros
You aren't responsible for fixing up the property. "When you rent, you don't have to worry about the headache of maintaining your home," says Tyson. "That's your landlord's job."
You have more financial and psychological flexibility. Especially in your younger years, you may not be sure that you'll stay with your current employer or chosen career. Should you change direction in the future, you may not want the financial overhead that comes with a mortgage, says Tyson. If you do decide to move, you can generally do so a lot more easily as a renter than you can as a homeowner.
You can have all your money in financial assets that you can tap into more easily. Some people enter their retirement years with a substantial portion of their wealth tied up in their home, a challenge that you don't face when renting.
It's a great opportunity to test living in an area where you may want to buy. If you're gearing up to purchase a home, renting gives you a chance to try out the area in which you think you'd most like to buy.
It may help you achieve big financial goals. "Some of the financially successful renters I've known include people who pay relatively low rent, either because they live in small housing and/or have roommates, or they live in a rent-controlled building," says Tyson. "Some young adults live with a family member who provides them with a good deal on rent, which can have benefits. If you can consistently save 10 percent or more of your earnings, which you may be able to do through a low-cost rental, you're probably on track to achieving your financial goals."
Renting Cons
When you rent, your entire monthly rent is subject to inflation. Of course, Tyson points out that living in a rent-controlled unit, where the annual increase allowed in your rent is capped, is the exception to this rule.
Landlords tend to want long-term tenants. "Most landlords prefer tenants who are stable renters and who remain for long periods of time," says Tyson. "If you don't expect to stay in an apartment much more than a year or two, that's probably better left unsaid."
You don't get to own the property. After paying all that rent, the property isn't yours at the end of the day.
Home Ownership Pros
With a fixed-rate mortgage, your monthly payment never increases. With a fixed monthly payment, you can budget with confidence. However, Tyson points out that your property taxes, homeowners insurance, and maintenance expenses will likely increase with the cost of living.
As a homeowner, you build equity in your property. That equity can be significant by the time you retire.
Owning may cost less than renting in some areas. This is especially true if you have the opportunity to buy at lower prices that occur after a decline in home values that sometimes occurs (usually around the time of a recession).
Mortgage interest and property tax payments for your home are generally tax-deductible. And in the early years of your mortgage, nearly all of your payment goes toward interest, Tyson adds. Be aware, however, that under the new tax laws, mortgage interest is deductible for up to $750,000 of mortgage debt, and your property taxes and state income deduction is capped at $10,000 per year.
It's a good option if you're planning to stay put. Financially speaking, buying a home begins to make more financial sense if you anticipate being in your home for three to five years or more.
There are plenty of options in the real estate market. When buying, you're sure to find a housing option that's right for you. In addition to single-family homes, you also have higher-density options like condominiums, townhomes, and cooperatives. If you don't have the time, energy, or desire to keep up a property, shared/higher density housing may make sense for you.
And remember: In a good real estate market, all types of housing appreciate, although single-family homes tend to do best. Shared-housing values tend to increase the most in densely populated urban areas with little available land for new building.
Home Ownership Cons
You could end up overpaying or paying more than you can afford. Buying a home can be financially rewarding, but owning a property is a big financial commitment that may backfire if you get in over your head or overpay.
Putting 20 percent down is a steep price for twentysomethings. "Many people, especially people in their 20s, don't have enough cash on hand to make the standard down payment of about 20 percent of the property's purchase price," says Tyson. "Yet this is the percentage needed to avoid the added cost of private mortgage insurance (PMI) required by lenders."
The associated costs with buying are also high. Buying and selling a property entails a lot of expenses, including the cost of getting a mortgage, inspection expenses, moving costs, real estate agents' commissions, and title insurance. To cover these transaction costs plus the additional costs of ownership, a property needs to appreciate about 15 percent during the tenure of your ownership.
Your mortgage may not get approved. When you're under contract to buy a property, having your loan denied after waiting several weeks can mean you lose the property as well as the money you spent applying for the loan and having the property inspected. This is a risk you'll have to take in order to secure a loan.
"Regardless of whether you rent or buy, you will devote a significant amount of money to your housing expenses over the course of a lifetime," concludes Tyson. "This is a momentous decision, so make sure you're making decisions based on what is right for you—not what was right for your parents or even what's right for other people your own age. Take a long, honest look at your life and your financial goals. Eventually, the right solution for you and your financial situation will become clear, and you can make a decision you feel good about."
# # #
About the Author:
Eric Tyson, MBA, is an internationally acclaimed and best-selling personal finance author, counselor, and writer. He is the author of five national best-selling financial books including Investing For Dummies, Personal Finance For Dummies, and Home Buying Kit For Dummies. He has appeared on NBC's Today show, ABC, CNBC, FOX News, PBS, and CNN, and has been interviewed on hundreds of radio shows and print publications.
About the Book:
Personal Finance in Your 20s & 30s For Dummies® (Wiley, November 2017, ISBN: 978-1-119-43141-1, $19.99) is available at bookstores nationwide, from major online booksellers, and direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797. For more information, please visit the book's page on www.wiley.com.
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Hemp, Inc. Reports: Sessions Gives Green Light to Cannabis Industry
SPRING HOPE, NC, March 26, 2018 (GLOBE NEWSWIRE) -- Hemp, Inc. (OTC PINK: HEMP), a global leader in the industrial hemp industry with the largest multipurpose industrial hemp processing facility in the western hemisphere, appreciates the clarity provided by U.S. Attorney Jeff Sessions in his recent statement that the U.S. Justice Department would not be pursuing small marijuana cases.
According to The Guardian, “Federal prosecutors will not take on small-time marijuana cases, despite the Trump justice department’s decision to lift an Obama-era policy that discouraged authorities from cracking down on the trade in states where the drug is legal.” Sessions told students in a speech that, Federal law enforcement lacks the resources to take on “routine cases” and will continue to only focus on gangs and larger conspiracies.
While this is good news for the cannabis industry at large, Sessions’ stance on cannabis does not include industrial hemp nor does it include kenaf – both plants are being planted and harvested by Hemp, Inc. and its strategic farming partners in North Carolina. Hemp products are high in cannabidiol (CBD) and have only trace amounts of THC – the psychoactive component in marijuana that most associate with being “high;” hemp-derived CBD products are legal to import and sell in all 50 states.
The Company issued an announcement on Jan. 5, 2018, about “Sessions’ Obsession” with marijuana and how it does not impact the industrial hemp industry. Hemp, Inc. CEO Bruce Perlowin also recently spoke with cannabis-focused media outlet ”Cashinbis” about the reasons why the U.S. government’s stance on marijuana does not affect the industrial hemp industry.
“We are encouraged by Sessions’ latest remarks but want to make it clear to the public and our shareholders that hemp products are completely legal for consumers to purchase and/or consume in the United States,” said Hemp, Inc. CEO Bruce Perlowin. “We are aggressively ramping up our operations to capture the multi-billion, dollar hemp market, which is projected to grow 700% and hit $1.8 billion by 2020.”
Hemp, Inc. announced on Jan. 4th that the Company was shipping its first purchase orders of loss-circulation material DrillWall™ and Kenaf fiber. On Jan. 25, 2018, the Company announced it had fulfilled its first purchase order for Spill-Be-Gone™, part of Hemp, Inc.’s spill-absorbent family of products. As part of the Company’s ongoing expansion of its operations, Hemp, Inc. announced on March 7, 2018, that it was set to grow up to 25,000 acres of industrial hemp this year, thus further positioning North Carolina as the epicenter of the industrial hemp industry.
Also, as you may recall, in August 2017, Hemp, Inc. announced the official launch of its NuAxon Tech CO2 Supercritical Extractor. On Nov. 2, 2017, Hemp, Inc. announced the delivery of its advanced CBD hemp oil extraction post-processing equipment, thus completing the Company's hemp oil extraction infrastructure. Hemp, Inc. announced its consulting agreement with HQ Global Education, Inc. on March 13, 2018. In addition, the Company announced March 21, 2018, its long-term strategy to build the world’s largest hemp oil extraction infrastructure by creating joint ventures with multiple companies to house and operate their CBD extraction equipment in its 85,000-square foot facility in Spring Hope, North Carolina. The first company of these joint ventures is HQ Global Education, Inc. (OTC: HQGE), a scientific research development company.
The agreement between Hemp, Inc. and HQ Global Education, Inc. is the first step toward executing Hemp, Inc.’s strategic plan to have a joint venture between the two companies wherein Hemp, Inc. will house and operate a HQ Global Education, Inc. CBD extractor.
HQ Global Education, Inc.’s exclusive educational database is one of the largest and valuable resources in the industry, reporting on thousands of hours of research that have been accumulated, tested and verified by professionals in the field. Per the consulting agreement in cooperation with Hemp, Inc., HQ Global Education, Inc. intends to become a leading provider of the highest-quality customizable extractions of CBD oil to this rapidly-growing industry.
Hemp gains powerful ally to free it from marijuana ties
YVONNE GONZALEZ
Cherry wine strain industrial hemp grows in a nursery on a farm in Pahrump on Thursday, July 6, 2017. A new law is opening up retail sales for products made using these types of Nevada-grown plants, which contain almost no THC.
Associated Press
Tue, Mar 27, 2018 (12:30 a.m.)
FRANKFORT, Ky. — Hemp advocates have a powerful ally in Senate Majority Leader Mitch McConnell. The Kentucky Republican said he will introduce legislation to legalize hemp as an agricultural commodity by removing the plant — prized for its oils, seeds and fiber —from the list of controlled substances.
A look at hemp's tortured past and its prospects for the future:
WHAT'S THE DIFFERENCE BETWEEN HEMP AND MARIJUANA?
Hemp and marijuana come from the same species of plant, but hemp has a negligible amount of THC, the psychoactive compound that gives marijuana users a high.
THEN WHY IS HEMP ILLEGAL?
The family connection sidelined hemp production for decades. Growing hemp without a federal permit was banned due to its classification as a controlled substance related to marijuana.
The crop got a limited reprieve when Congress passed the 2014 Farm Bill. A provision pushed by McConnell allowed state agriculture departments to designate hemp research and development projects.
HOW IS HEMP USED?
Supporters tout the versatility of a crop valued for its oils, seeds and fiber. Hemp has historically been used for rope but has hundreds of other uses, including clothing and mulch from the fiber, hemp milk and cooking oil from the seeds, as well as soap and lotions. Other uses include building materials, animal bedding and biofuels.
WHAT WOULD McCONNELL'S PROPOSAL DO?
McConnell wants a full pardon for hemp by removing it from the list of controlled substances. That would restore hemp as a legal agricultural commodity, he says, and "allow this industry to continue to flourish here in Kentucky."
ARE MORE FARMERS GROWING HEMP?
Since the 2014 federal Farm Bill allowed experimental hemp production, crop production has spread but remains tiny.
So far, 34 states have authorized hemp research, according to the advocacy group Vote Hemp. Actual production took place in 19 states last year. Hemp production totaled 25,541 acres (10,336 hectares) in 2017, more than double the 2016 output, said Eric Steenstra, president of Vote Hemp.
In McConnell's home state of Kentucky, agriculture officials recently approved more than 12,000 acres (4,856 hectares) to be grown in the state this year, and 57 Kentucky processors help convert the raw product for other uses
.
HOW WOULD MCCONNELL'S BILL WORK?
McConnell said his bill seeks to build on pilot program successes and has bipartisan backing in the Senate.
The U.S. Department of Agriculture would have to approve of states' implementation plans, but once that happened, states would be the primary regulators of hemp. The bill also would allow hemp researchers to apply for competitive federal grants from USDA.
ABOUT HEMP, INC.
With a deep-rooted social and environmental mission at its core, Hemp, Inc. seeks to build a business constituency for the American small farmer, the American veteran, and other groups experiencing the ever-increasing disparity between tapering income and soaring expenses. As a leader in the industrial hemp industry with ownership of the largest commercial multi-purpose industrial hemp processing facility in North America, Hemp, Inc. believes there can be tangible benefits reaped from adhering to a corporate social responsibility plan.
UPCOMING INTERNATIONAL AND DOMESTIC EVENTS
Across the globe, the hemp industry is rising to astronomical levels. In the wake of the hemp industry projected to grow 700% and hit $1.8 billion by 2020, there has been more education and networking within the industry. That means more events and conferences, thus, Hemp, Inc. has started compiling an ongoing list of upcoming hemp events around the world. Check out the listing of international and domestic events here.
SOCIAL NETWORKS:
http://www.twitter.com/hempinc (Twitter)
http://www.facebook.com/hempinc (Facebook)
https://www.facebook.com/KingOfPot (Bruce Perlowin's Facebook Page)
https://www.facebook.com/TheHempUniversity/ (The Hemp University's Facebook Page)
SUBSCRIBE TO HEMP, INC.'S VIDEO UPDATES:
"Hemp, Inc. Presents" is capturing the historic, monumental re-creation of the hemp decorticator today as America begins to evolve into a cleaner, green, eco-friendly sustainable environment. What many see as the next American Industrial Revolution is actually the Industrial Hemp Revolution. Watch as Hemp, Inc., the No. 1 leader in the industrial hemp industry, engages its shareholders and the public through each step in bringing back the hemp decorticator as described in the "Freedom Leaf Magazine" article "The Return of the Hemp Decorticator" by Steve Bloom.
"Hemp, Inc. Presents" is accessible 24 hours a day, 7 days a week, by visiting www.hempinc.com. To subscribe to the "Hemp, Inc. Presents" YouTube channel, be sure to click the subscribe button.
FORWARD-LOOKING DISCLAIMER AND DISCLOSURES
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.
Contact:Hemp, Inc.
855-436-7688
info@hempinc.com
Source: Hemp, Inc.
© 2018 GlobeNewswire, Inc.
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Ogden is Growing as a Culinary City
Ogden, Utah (March 27, 2018)- The 6th annual Ogden Restaurant Week presented by US Foods, April 12-21, showcases how much Ogden has grown as a culinary city. During this 10 day “week”, 25 locally owned and independent restaurants in Downtown Ogden will be showcasing their menu bests at lower prices, offering a fixed two-course lunch for $10 or a three-course dinner for $17.
“A decade ago, you could count the number of independent restaurants in downtown Ogden on one hand,” said Sue Wilkerson, owner of Lighthouse Lounge. “Now you can find great local dining options throughout downtown that range from fine-dining, to quick-serve, to incredible food at your local bar.”
Ogden boasts an affordable, eclectic, downtown lifestyle that is growing in the arts and culinary scene. During Ogden Restaurant Week diners will discover locally sourced menu items ranging from yack meatballs to micro-greens, fresh surprises that encompass avocado tacos to a honey lime salad, and comfort food favorites from stacked burgers to chicken and waffles. Most restaurants have gluten-free, vegan and vegetarian options as well.
“Ogden Restaurant Week is a great time to get out and try something new,” said Shani Overson, owner of one of Ogden’s newest restaurants, Ramen Haus. “This is a wonderful time to treat yourself to that restaurant you have always wanted to try, or to indulge in a dessert that you have had your eye on from one of your favorite restaurants. Ogden has an incredible diverse dining scene, this is going to be a delicious week!”
Each restaurant will offer a unique Restaurant Week menu with choices of entrees, appetizers and desserts, giving foodies and casual diners alike the chance to explore a new culinary experience at a lower price point. Participating restaurants will continue to offer regular menu items at regular prices alongside their Ogden Restaurant Week menu. To fully round out your Ogden dining experience be sure to order a cocktail made with top-shelf local spirits from New World Distillery or Ogden’s Own Distillery or order a local beer from Roosters or Talisman.
2018 Participating Restaurants
Ramen Haus
Harp and Hound
The Bigelow Grill
Angry Goat Pub and Kitchen
Bangkok Garden Thai Cuisine
Even Stevens Ogden
Harley & Bucks
Hearth on 25th
Iggy's Sports Grill
Lighthouse Lounge
Lucky Slice Pizza
Pig & A Jelly Jar
Prairie Schooner
Restaurant 1107
Roosters Brewing Co.
Rovali's Ristorante Italiano
Slackwater Pub & Pizzeria
Smokey's BBQ & Grill
Sonora Grill
Thai Curry Kitchen
Tokyo Station Teppanyaki & Sushi
Tona Sushi
Union Grill
Warrens Craft Burger
Zucca Trattoria
Ogden Restaurant Week is also running various contests on social media outlets including gift cards from participating restaurants to those who share their savory finds on Facebook, tagging Ogden Restaurant Week, or share on Instagram using @OgdenRestaurantWeek and #OgdenRestaurantWeek.
For those traveling by train to Ogden, most of the participating restaurants are a short walk from the FrontRunner platform at the UTA Intermodal Hub.
For more information and a peek of the menus visit www.ogdenrestaurantweek.com
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About Ogden Restaurant Week
Ogden Restaurant Week was established in 2013 by local and independently owned restaurants in downtown Ogden. During Ogden Restaurant Week local downtown restaurants will offer a special Restaurant Week menu with several different choices of entrees, appetizers and desserts, giving epicures and casual diners alike, the chance to explore scrumptious eats at discounted prices. To learn more about Ogden Restaurant Week, go to www.ogdenrestaurantweek.com
About Visit Ogden
The greater Ogden area has been continually marked as one of Utah’s leading destinations for travel and recreation. Outside and National Geographic Adventure Magazine both declared Ogden as “one of the top ten best places to live.”
Ogden, the crossroads of the west, located in Weber County is 35 minutes north of the Salt Lake International Airport. The area inspires visitors with more than 170,000 acres of National Forest, three ski resorts, more than 210 miles of single-track trail for hiking and mountain biking and 13,000 acres of lakes connected by pristine rivers for paddle sports and fishing. For additional information visit www.visitogden.com
