The Pros and Cons of Renting a Property
Rent or Own?
In today’s economy, the housing market can seem like a scary place. Before making your decision to either rent or own, here is a listing of the pros and cons of either option.
Pros of Renting
Here is a look at the pros to renting versus owning a home.
Zero Repair Costs
This perk can be a big one. As a renter you are not responsible for anything that breaks on the property, unless you broke it. Carry no liabilities for maintenance or repair costs.
By renting, you can become more likely to qualify for state benefits if you lose your job.
A house normally requires 20% down upfront to purchase versus that of a rental that may only require up to three months of rent as a deposit.
With a rental, you can move when you decide to once your lease expires. When you own a home, the housing market dictates your ability to sell your home.
Landlords can be honest and timely in getting repairs and maintenance issues taken care of.
Cons of Renting
Here is a look at the cons to renting versus own a home.
The landlord has the house under their own policy. However, as a renter you are still responsible for any personal property related insurance.
No Return on Investment
As the house increases in value over time, the renter gains no value from the home and money contributed towards the property.
Having the inability to customize can lead the renter no choice with painting a room or hanging pictures on the wall.
Occasionally, you can come across a landlord that is considered untimely and neglectful of their property.
Renting to Own
The rent to own option provides the renter the ability to pay a premium of their lease. This option is best suited for those who eventually want to own the home they are currently living in as a renter. This amount would be a set amount and depends on the current market price of the home.
Renting a Home vs. Apartment
By choosing a home to rent, you would gain more space which is ideal for renters with pets and children. For those with fewer items and obligations, an apartment could suit their lifestyle better. The cost differences that exist between homes and apartments can vary.
Homes can provide more privacy as well as fewer issues such as infestation of bugs that can easily spread within a complex. Homes tend to pose additional maintenance such as landscaping versus an apartment that covers those types of items. Lastly, you can lease through private owners when it comes to homes although apartment complexes are normally professionally staffed instead.
Statistics seem to speak the facts. In 2011, 66% of Americans owned the home they lived in. The remaining 34% leased their residence. Typically, those that are 65 and older tend to own homes at a percentage of 83%, ages 45 to 64 own at a rate of 79%, with it slowly decreasing from there.
What are the renters currently leasing out? Almost half of the renters out there rent from complexes or 5 or more units. 34% of renters lease out single family homes while less than a fifth of individuals rent from structures of two to four units. Lastly, a small four percentage lease mobile homes.
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