To Rent or to buy? That is the question.
In recent years, the housing market has taken a significant and seemingly abrupt nosedive. While this is bad news for homeowners and home buyers, it is not such bad news for those who are looking to rent a home.
If homeowner loans are what you are seeking, be prepared to prove that you have impeccable credit, a steady and verifiable source of income and a lot of patience. The aftermath of the mortgage and banking crisis has dramatically decreased the availability of homeowner loans. Mortgage loans and home equity loans (homeowner loans) are now all that much harder to secure.
The benefits of owning your own home are certainly good. Home ownership is a smart long-term investment. If you own your home, you can customize the interior and exterior in almost any way you like, painting, redesigning, etc. You can landscape, or not landscape, however you choose.
Some of the downsides of owning a home are the costs. The costs of unexpected repairs can quickly wipe out a savings account. Annual property taxes are likely to go up every year based on the value of the home and the monetary penalty for not paying these on time can be quite steep.
Another downside of owning a home is that the real estate market can greatly affect the value of your home. If the amount you owe on your mortgage is greater than the market value of your home, then you’re upside down on your loan. When you own a home, you cannot just pick up and move somewhere else quickly. You have to be willing to stay put for a long period of time.
If you choose to rent a home, there are several benefits. You are not stuck in the same place for a long time; you have the freedom to move fairly quickly, should you desire to do so. You are not monetarily responsible for any repairs or upkeep costs, such as paint, appliances, etc. when you rent a home. As a renter, you are not responsible for paying the property taxes on the home you rent. For these reasons, renting is generally less expensive, in the short term, than buying.
Renting is not all a bed of roses, however. You do not have the right, usually, to customize your living space. Meaning, you cannot paint, redo the flooring, or install permanent shelving. Often when you rent, there are often restrictions on what kind of pets, if any, you are allowed to have in your home. The rules are all open to the homeowner’s discretion, giving you little control.
The homeowners of today, who have managed to hold on to their property, are often looking to obtain good tenants for their property. While this is not currently a seller’s market, it is most definitely a renter’s market.
There are so many great properties for rent all over the country. Be prepared to pay the first month’s rent and a security deposit at the time you apply to rent a home. This will increase your chances of getting the home and being able to move in right away.
This article was brought to you by Money Supermarket.
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