Debt, Credit Cards And Divorce In Ri [mortgage-answer.blogspot.com]
Question by gilda13me: I rent for 0 a month. Would it be better to buy a condo and pay a mortgage even though my mortgage payments would be $ 1500 a month? Should I continue to rent or invest in a property? The $ 1500 rate is a hypethetical estimate. I live in RI. Best answer for I rent for 0 a month. Would it be better to buy a condo and pay a mortgage even though my mortgage payments:
Answer by mom2trinityj
It's ALWAYS better to buy rather than rent if you can get a mortgage, because when you are buying property, it's building equity. When you're renting, you're only buying equity for your landlord.
Answer by k_avalla
buying is always better buying your investment will sell for more than you have invested in it
Answer by nikki_luvz_jamal
It's better to invest your money in a property that you know would be yours, Consider buying a condo. Beacause your practically throwing your money away. Good Luck!
Answer by kittyhawk1993
if you can afford to make the payment then YES, it's always better to own than rent if possible
Answer by Neodiogenes
No, it's not always better to buy. That's a silly short-sighted statement. You have to calculate the cost not only for your mortgage but also for all your household expenses that come with your rent. There's the fees paid to your condo association, the maintentance in and outside the house, property taxes, and so on. Your real cost might well be $ 2000 a month, not $ 1500 -- and that's all money thrown away, just like with rent. HOWEVER, on the other side of the coin, you can deduct your mortgage and property taxes from your Federal and State income taxes, so add that to the plus column. Now check the appreciation/depreciation rates for similar properties in your area and figure how much the property has increased in value over time, and calculate forward if it continues to increase in value at the same rate. That way you can determine how much equity you will gain over time. Finally, decide on your "window" of ownership -- whether you're planning to own for 5 years or 10 or 20 or what. You might find that if you're planning to move after 5 years, renting makes much more sense, financially, but if you're going to hang around 10 or more years then buying becomes a much more attractive option. Now, that being said, I bought a house five years ago and refinanced several times. My total house-related payments are about $ 2500/month but much of this I can deduct from my federal and state taxes so the actual cost is perhaps $ 1800. Over the past five years the house has increased in value an average of $ 5000 per month, so my net gain has been $ 3000/month. Basically it's like someone's been paying me to live here, at least, unless the housing market falls significantly.
Answer by kentata
Buy. You are giving your money away now instead of investing.
Answer by non_stopangel
buying is ALWAYS better
Answer by lizarddd
Renting is throwing your money away, after a few years you have nothing to show for it. I would buy if you could afford it, at least once the mortgage is paid off you have the property that you can sell or leave to your family
Answer by Siri
you should stop renting... you are just tro wing your money away... so go out and buy a condo..
Answer by davidis99
You needn to consider this in the context of your income and your taxes. If the benefit of receiving the mortgage interest deduction and deducting local taxes will be greater than the discount of your rent versus the mortgage payment, then yes. Otherwise, you should simply bank the money you're not spending on the mortgage, and save for when it makes sense for you to buy.
Answer by micki_g
Most condos have Condo fees or association fees some are extremely high some are really low. Make sure that these fee don't rival your mortgage or your budget after all the other bills and taxes are assessed, there is an increasing number of condos on the market who list no fees. But from an equity stand point, owning a home is far better than renting one, as the build equity, even condos, My husband bought his condo for $ 45000, and sold it for $ 150000 only five years later. I pe rsonally would look for a mortgage close to what I'm paying in rent. The rates aren't that far off these days.
Answer by fcas80
Don't forget that mortgage interest is tax deductible. So if your 1500 mortgage payment included 1000 of interest, and if your marginal tax rate were 15%, you are benefiting after-tax by 1000x15%=150; and the net after-tax cost of the mortgage is really 1500-150=1350. If you are currently taking the standard income tax deduction, this additional interest deduction may allow you to itemize, and claim even more tax deductions. On the other hand, if you buy a condo there is a monthly maintenance charge to the condo association, plus the cost of various repairs that you will have tomake yourself instead of your apartment superintendent making.
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Rhode Island has no specific legislation directly related to the allocation of debt in a divorce family of Rhode Island. Theoretically, issues regarding the family debt are determined under the Statute RI Division RIGL 15-5-16.1 fair. If the case is to a full trial on the merits, which is unlikely, the judge must rely on the equitable distribution law 15-5-16.1 to determine the allocation of assets and debt. Please contact a divorce lawyer Rhode Island / attorney about your divorce RI. Any debt incurred by the husband and wife during the course of the marriage is marital debt. Debt incurred before marriage is the responsibility of the person who incurred the debt.
How is marital debt actually divided in Rhode Island Divorce? This is a very difficult and complicated. There is no clear answer. The answer can not be determined by analytical reasoning. In practice, the sale of the marital debt is generally negotiated by the parties during the divo rce without the need for a trial. This article must be used for informational purposes only and not as a substitute for obtaining a divorce lawyer Rhode Island. The judges tend to consider the following factors to determine the allocation of marital debt:
1) The court shall consider whether the debt was incurred in the pursuit of civil partnership. Marriage is a partnership. If the debt was used for home products, groceries, clothing, family vacations, medical bills, etc., then the Court is more likely to divide the debt equally between the parties.
If the debt was incurred by the husband or wife in pursuing the agenda of its own while the debt is more likely to be attributed to the person who committed the debt. For example, gambling debt, the debt used in the pursuit of a business or an unreasonable debt incurred without the consent of the other spouse is more likely to be attributed to the person who incurred the debt. This type of debt is theo retically "marital debt" but it is unfair to the other spouse having to pay. For example, the gambling debt should be paid by the spouse who has lost money at the casino.
2) Who will have the title and / or possession of the goods or things for which the debt was incurred? This is an important factor. If the husband bought a flat screen TV on his Mastercard and he will get the flat screen, then it is more likely to be assigned this debt.
The person who is assigned the vehicle / boat will generally be responsible for the debt that ensures the automobile / car / boat. With regard to real estate is concerned, the person who is assigned property is generally responsible for paying the mortgage, taxes and property insurance. This can become more complicated if a home equity line was used to buy property that is titled in the name of the spouse who is not affected real estate.
3.) What is the earning capacity, assets and the parties' abili ty to repay the debt? If one spouse has a much higher income or earning capacity in the future, then the other spouse where the spouse can not be ordered to pay a larger share of domestic debt. This is a very practical determination because it does not make sense to assign the debt to a person who can not afford to repay. Sometimes, neither party can afford to repay debt.
In some cases, the parties decide to file a joint bankruptcy petition. In case of some Rhode Island divorce, one spouse files for bankruptcy and the other does not deliver. The effect of bankruptcy on the orders of the Court and the obligations of the settlement agreement of the property is beyond the scope of this article.
It can also be a foreclosure of the marital estate real or the parties may agree to a short sale. Foreclosures and short sales are also beyond the scope of this article. Please consult an attorney for the Rhode Island family law or bankruptcy attorney RI on th ese issues.
4.) Who is to blame for marriage breakdown? If one spouse had an affair, abused alcohol or drugs, or was physically abusive while the spouse may be ordered to pay a larger share of the debt. Cheating on your spouse could carry a penalty of being responsible for a greater share of domestic debt
5.) Debt to the husband or wives name or is it the common debt ? This is a very practical determination. Judges may be more likely to attribute certain debt to a spouse who is the "debtor". (In the name of that person) The rationale is simple. The debtor has an independent legal obligation to repay the creditor third.
If both parties have an equal amount of domestic debt in their name, then the answer can be easily assigned to each part of the debt on their own behalf. If one spouse has a disproportionate amount of debt in their own name, then the Court may order a party to make periodic payments toward the debt to another. The Cour t may also order certain goods must be sold and the debt paid.
The common debt is an even more perplexed. Debt joint debt means that both spouses owe the debt to a creditor third. This is usually the credit card debt, real estate mortgages, vehicle debt, credit card store. If the Court awards the common debt to one spouse, the other spouse must be vigilant to ensure that the debt is actually paid on a timely basis.
Although the Family Court Rhode Island may affect the common debt, the transaction have no effect on the legal obligation of one spouse to pay off debt to the creditor third. The credit card companies such as Mastercard, Visa, Chase, Wells Fargo and American Express do not care what some order-status family court judge. All they care about whether they get their money back with interest. The person who signs a promissory note or a debt agreement is responsible for this debt with respect to the third party creditor. This obligation is in dependent of any Rhode Island (RI) order of the Family Court or the property settlement agreement.
If one spouse is assigned certain debts and do not make payments or not make payments on a timely basis while driving may cause havoc on the other spouses credit score. This is particularly the case if the non-payment of debt results in foreclosure, lawsuits or repossession of the car / automobile. If payments are not made pursuant to court order or a property settlement agreement, then the other spouse can seek redress in court with a motion for contempt or a motion to enforce the settlement agreement ownership.
There is little or no sense to assign the debt to a spouse who has no income or ability to repay the debt because the mission will actually harm the other spouse because their credit may be seriously injured. Rhode Island Attorneys legal notice in accordance with the Rules of Professional Responsibility of Rotary:
The Rhode Isl and Supreme Court authorizes all lawyers in the general practice of law but does not license or certify any lawyer / attorney as an expert or specialist in any field of practice. />
Debt, Credit Cards And Divorce In Ri Articles
