{"id":907,"date":"2007-01-16T21:32:09","date_gmt":"2007-01-17T04:32:09","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=907"},"modified":"2007-01-16T21:39:43","modified_gmt":"2007-01-17T04:39:43","slug":"in-a-rent-vs-buy-bind-right-now","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/907\/in-a-rent-vs-buy-bind-right-now\/","title":{"rendered":"In a Rent vs Buy Bind Right Now"},"content":{"rendered":"

Eric writes:<\/p>\n

Hi Greg!<\/em><\/p>\n

I am writing because I really enjoy your blog. I’m licensed, but haven’t worked with realty in years due to being back in IT (which you also seem to have a passion for), so I enjoy hearing from the experts.<\/em> <\/em>I’m in a rent vs buy bind right now. I have someone that can help with a rent-to-own (agreement for sale I believe?) situation, but the main reasons I have for buying a house is that I can take deductions for home office and mortgage interest.<\/p>\n

Owning is several hundred more, but temping. However, if during this rent-to-own deal, I’m not able to take those deductions.. I think I’d prefer to save the money, rent something equally as nice, and watch the market, rates, and my credit very carefully.<\/p>\n

Are you familiar with this? I see plenty of rent-to-own\/lease option etc. wording on craigslist rentals, but do you know if the tax man allows you to take deductions on places you are “renting to own”?<\/p>\n

Appreciate any feedback, have a GREAT week \ud83d\ude42<\/p>\n

Eric
\n<\/em><\/p><\/blockquote>\n

Hi Eric, Russell here. The Ask the Broker questions get passed on all of us – so I’ll toss my hat into the ring on this one.<\/p>\n

It is my understanding – and also logical, if you think about it – that you can only deduct the interest if you are actually paying<\/u> the interest. With a rent to own agreement you aren’t liable for the interest, aren’t actually paying it and therefore can not deduct it. So, based on your question, you would be better off renting. But that isn’t the only reason you would be better off renting. There is probably some exception to just about any financial “rule” one can write and I’m sure there are some who will disagree with what I’m about to say here – but I’ll go ahead and say it anyway.<\/p>\n

Combining a lease with a purchase agreement is, for most people, the worst<\/em> of all possible worlds. If you are the tenant\/buyer you usually wind up paying more in rent than you ever would if you “just rented”. As most agreements of that Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Eric writes: Hi Greg! I am writing because I really enjoy your blog. I’m licensed, but haven’t worked with realty in years due to being back in IT (which you also seem to have a passion for), so I enjoy hearing from the experts. I’m in a rent vs buy bind right now. I have […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,8,5],"tags":[],"class_list":{"0":"post-907","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-investment","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":508,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/508\/hotpadscom-a-for-rent-by-owner-site-based-on-a-whimsical-map-mash-up\/","url_meta":{"origin":907,"position":0},"title":"HotPads.com: A for-rent-by-owner site based on a whimsical map mash-up . . .","author":"Greg Swann","date":"October 4, 2006","format":false,"excerpt":"This is the map search screen from HotPads.com, a for-rent-by-owner site launching tonight: This is the most whimsical map mash-up I've seen yet, and the site is a treat if only for the cartoony graphics. In Phoenix, at least, they're aggregating listings from local property management companies, although landlords can\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7532,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7532\/put-down-the-pipe-and-step-away-from-that-lease-agreement\/","url_meta":{"origin":907,"position":1},"title":"Put Down The Pipe – And Step Away From That Lease Agreement","author":"Doug Quance","date":"March 20, 2009","format":false,"excerpt":"Yesterday's Unrealistic Sellers Are Today's Unrealistic Landlords Just when we thought we had finally convinced all potential sellers that the real estate market was in a crisis - and that realistic pricing was the only way that a sale could be consummated - we now must deal with the unrealistic\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8341,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8341\/throwing-a-virtual-rent-party\/","url_meta":{"origin":907,"position":2},"title":"Throwing a Virtual Rent Party","author":"Cheryl Johnson","date":"May 10, 2009","format":false,"excerpt":"While Greg and Brian are talking about \"Battling Back\"; Eric, Teri and I have been talking about \"Throwing Parties\".\u00a0 As in Rent Parties. If you are not familiar with the term, Rent Parties flourished in Harlem in the 1920s and 1930s.\u00a0 Musicians would make the rounds after their paying gigs,\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14949,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14949\/reforming-fanniemae-and-freddiemac-with-marx-rotarian-socialist-rent-seekers-of-the-world-unite-you-have-nothing-to-lose-but-your-brains\/","url_meta":{"origin":907,"position":3},"title":"Reforming FannieMae and FreddieMac with Marx: Rotarian Socialist rent-seekers of the world unite! You have nothing to lose but your brains!","author":"Greg Swann","date":"August 17, 2011","format":false,"excerpt":"Totally cool. An actual newspaper article about America's favorite welfare program, government subsidized mortgages -- and in The Boston Globe, no less:Amid all the clamor about entitlement reform during the struggle to raise the debt ceiling, one enormous cost - and potential source of future savings - largely escaped scrutiny:\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1041,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1041\/is-your-broker-profitable-rent-a-broker-shops\/","url_meta":{"origin":907,"position":4},"title":"Is Your Broker Profitable? – “Rent-A-Broker” Shops","author":"Brian Brady","date":"February 13, 2007","format":false,"excerpt":"The 100%, desk fee model was made popular some 25 years ago by one HUGE national franchisor. There have been several companies that have adopted that model and had equal success. Essentially, the business model is along the lines of \"rent-a-broker\" for a flat fee per month. The term \"rent-a-broker\",\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2584,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2584\/los-angeles-city-rent-control-read-it-and-reap\/","url_meta":{"origin":907,"position":5},"title":"Los Angeles City Rent Control: Read it and REAP.","author":"Cheryl Johnson","date":"February 9, 2008","format":false,"excerpt":"I notice my sidebar title is \"Investor\".\u00a0 OK, I can run with that.\u00a0 But please don't expect fun and easy tips on how to get rich quick.\u00a0 I haven't quite mastered that yet.\u00a0 However, as the owner, operator and manager of a few residential rental units within the City of\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=907"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/907\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}