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One of the biggest decisions that anyone can make in their life is to purchase a home. Some people wonder if purchasing a home is the best option for them. However, there are many advantages to purchasing a home. Yet there are disadvantages, which means renting may be the better option for depending on your situation. Rule of thumb: for short term stays, Renting is best.
Advantages Of Renting
The following are some of advantages of renting that the consumer may want to consider:
- The initial investment to rent a home or apartment is quite low. Buyers often need to have anywhere between 5 to 10 times to move into a home than to rent an apartment.
- The renter has limited responsibility because they do not have to take care of repairs. The landlord is responsible for these tasks. When owning a home, the owner is responsible for all repair costs.
- The renter has less of a tax impact on their financial situation. The renter is not impacted by such items as property taxes that can fluctuate often.
- The renter has more mobility and flexibility to move since leases tend to me short-term.
- Insurance costs are lower for renters because the renter only needs to insure the contents of the rental property and not the structure itself.
- The cost to move in is lower. There may be no down payment and less deposits required.
- Credit and Income Requirements are easier than for a purchase. Many people are excluded from being able to purchase because of credit problems. Get a MORTGAGE APPROVED SCORE of 640 NOW> www.640orFREE.com
Things To Know Before Renting A Home
Despite the advantages or renting, there are some things that renters should take into consideration before choosing to rent.
- The renter should know what the lease can and cannot do before signing. Local laws do not always cover the conditions covered by leasing and tenancy agreements. The renter’s lease is legally binding when it comes to the living arrangements and the renter’s rights.
- The renter should know how to protect their security deposit. This can be done by doing a through walk-through prior to signing a lease. All pre-existing damage must be documented.
- The renter should know about the renter’s insurance policy. Renter’s insurance protects the renter against damage and losses due to flooding, fires, robbery, and other adverse events.
Should I Buy Or Rent?
There are two factors to consider in this equation: How much the homeowner expects the home to appreciate and how long the homeowner plans to stay. A homebuyer usually needs to stay in the home for at least three years to make up the costs. Staying for five years is a more preferable timeframe. However, the homeowner may need to stay longer to be ahead compared to renting, which depends on the part of the country one resides.