With house prices skyrocketing, new generations are second guessing the practicality of the age-old belief that owning a house is the biggest achievement in life. For the average working class individual or family, such an endeavor is certainly not something to take lightly because sometimes, this can lead to financial disaster. On the flip side, there is also the option to rent. So before you make a decision to buy a home, consider some benefits of, instead, renting a property. Below are some things to think about.
Lower barrier to entry (in terms of payments)
In terms of financial advantage, especially for the short to medium term, renters are on much safer ground. Instead of fluctuating property taxes, renters can rely on a slightly more binding (at least for a year or so) and predictable pattern of monthly dues. Also, the down payment for moving in to a rented apartment is significantly lower compared to the required fees for buying a house. After all, most landlords only require rental and security deposits.
Taxation can be quite complex to look at initially, and regulations may vary from one county to another. To stay up-to-date, check local or state law and determine if you have to pay property tax, and find out how much, to include that in your accounting of whether or not it would be practical to rent. Typically, however, lessees are not required to pay any real estate taxes. This falls under the responsibility of the property owner.
Less upkeep costs
As for upkeep costs, a modestly priced house doesn’t necessarily mean a big steal. Houses selling for way below market price can also come with a much-need repair job. These repair fees can sometimes cost a fortune when not looked into properly. If you’re the owner, this becomes your responsibility; but if you’re the renter, you call your landlord or your landlord’s property manager to complain. It’s usually the case—and may we say, rightly so, for the landlords and property managers to maintain the property and ensure basic living standards for the tenants.
Renter’s insurance (optional)
Renter’s insurance—which is an insurance policy that insures the dwellers’ belongings in the case of unfortunate scenarios, is optional but recommended. Renter’s insurance is significantly cheaper compared to what homeowners are required by law to pay. Note, however, that policies vary and increasing coverage may mean a higher premium to pay.
Renters also have the advantage of versatility: the freedom to relocate anywhere as soon as possible is one of the highlights of being a renter instead of an owner. By the end of a leasing agreement, you can either renew or move on to a new location or unit. The beauty of this setup is that renters can adapt to conditions favorable to their needs like for example, downsizing to lessen living expenses, or moving closer to a new place of employment. Be aware that in any event that there is a need for an immediate move-out, inspect the termination clause of your contract to know whether there is an early termination fee, and to prepare the needed amount.
The final word
It is all up to the consumer’s personal choice to rent, or, given the right circumstances, purchase a house. But remember to steer clear of hasty decisions. After all, the ultimate goal is to pick the choice that is most beneficial for you and your family.
If you are looking for reasonably priced, top notch properties and trustworthy rental property management in the Dallas-Fort Worth area, get in touch with us at Westromgroup.com
Some of the areas we cover are in:
North Richland Hills