Make The Right Decision Regarding Owning Or Renting An Apartment

reasons why renting is better than buyingPurchasing or renting an apartment can be one of the most important life decisions and making it right will go a long way in terms of being contempt with the place you will rest your head every night of your life. A decision of this magnitude should be done with extra care bearing in mind a lot of financial components such as utilities and the amount of money required for maintenance. When it comes to the factors which involve owning an apartment there are a lot of them to take into account and if treated accordingly, one’s life will be a breeze in respect to housing and owning such a property.

Financial Aspects

When it comes to the financial aspect, the best benefit of owning an apartment comes down to the aspect of having it rented. Rent is a lot cheaper than having a mortgage and factors such as upkeep are generally lower in price taking into account that these aspects are generally covered by the landlord as opposed to a tenant. One is advised to look for Vintage apartments as they usually come at a cheaper price.

Maintenance

Maintenance wise, they are a lot lower as mentioned before. The lack of such worries is going to be great in the long run as it removes some extra care which should be given to a property. Various conditions such as heavy snow will not hamper you as there will be no need to shovel or mow the lawn when it grows. The landlord will take care of that as not only will renting be more convenient but in some cases it will also prove to be cheaper.

Amenities

Apartment complexes usually offer the benefit of coming with a set of amenities such as pools or gyms if one chooses to opt for Altana luxury apartments or Aventine apartment homes. Convenience stores as well as laundry facilities will be right next to you and not only does it offer some flexibility and saves some time but certain chores such as doing laundry will be completely ruled out of one’s worries.

Safety

Safety is an important factor when it comes to investing in an apartment which provides such benefits and investing in a security system in an apartment complex will go a long way in making one sleep better at night by not having to worry about potential burglars and dangers which might otherwise occur if such systems are completely absent. The community factor should also be taken into account as some neighborhoods tend to have a night’s watch patrol which takes care of areas in rotation so that everyone feels safer in the place they live in.

New Tenant Checklist for Landlords

Renting out a property for the first time requires organization and preparation, but it can be a lucrative business move. If you’re looking to rent to new tenants, or it’s your first time as a landlord, follow this checklist to make sure you have everything in order.

Create the Perfect Lease Agreement

Take the time to craft an airtight lease agreement. Make sure you go over every necessary component of the lease: security deposit, pet policies, failure to pay consequences, damages, and conduct guidelines are a good place to start. There are a variety of sample landlord agreements available for free on the Internet, so start with a general example and alter it to your specifications.

Get a Separate Bank Account

If this is your first rental venture, it’s essential that you set up a separate bank account for any and all property transactions. For both legal and tax purposes, having your investment finances and personal finances separated will make things easier.

Get Your Insurance in Order

If you don’t already have an extensive insurance program, get one as soon as possible. Talk to your insurance broker about coverage for natural disasters, freak accidents, and sewage issues. These are often not included in general insurance plans, so it’s a good idea to check. Make sure you understand what exactly you’re liable for, and consider requiring renter’s insurance to ensure you and your tenants have the best coverage possible.

Do Necessary Repairs

Before you can rent out your property, you need to make sure all the home’s parts are in working order. Do any repairs necessary, or schedule a service provider to take care of them. Spending a little on upkeep will cost much less in the long run. Check furnaces, make sure all appliances are running correctly, and inspect the foundation. You don’t want to rent a potentially dangerous apartment out; doing so opens you up to a huge cache of legal issues. It also allows your tenants to potentially withhold rent from you until the property is serviced correctly and completely. Make sure your appliances don’t need replacing, and if they do, do it now. It’s better to have everything in top shape before you have someone move in. If you’re doing an apartment turnover, meaning you had a tenant living there before, hire a cleaning service to do a thorough scrubbing. Take photos of the conditions before your selected tenant moves in for proof should they cause any damages during their stay.

Know the Law

Don’t rent out your space and sign a lease agreement without understanding the regulations you must abide by. Beyond the Fair Housing Act, there are state and local regulations you must follow when selecting tenants and preparing the home for their use. Speak with a lawyer to understand the legality issues you need to before renting out your property. Even if you use a property management company, you are still liable for any unfollowed laws or accidents.

Use a Property Manager

If you won’t have the time to be on call for your tenants, or you simply don’t want to deal with the face to face negotiations, consider hiring a property management company. They can handle the daily ins and outs with renters, they will be well-versed in local and state ordinances, and be able to respond quickly to tenants when you aren’t able or willing.

Pick the Right Tenant

Don’t leave your property to chance and ensure the right people live in your rental. Use something like Mysmartmove tenant verification to make sure your potential tenants have a good credit history or criminal record. You can also find out if they have ever been evicted before, making the tenant selection process much easier. Doing your due diligence to pick the right tenant now will save you money, time, and a lot of stress in the future.

Have a Move-In Checklist

Once you’ve selected your tenant and move-in day arrives, make sure to draw up a move-in checklist and go through the apartment with your new renter. It should describe the condition of each room in explicit detail, and the house as a whole. This will help prevent any disputes later on with your tenant and help you determine how much of the security deposit they are owed when it’s time for them to move out.

Before you allow new tenants to stay in your property, ensure your finances, legal issues, and documentation are in order and make sure the process is as streamlined as possible.

5 Pre-Application Tips to Appeal to Landlords

Folder with documentsIn today’s competitive rental market, renters must prepare to impress potential landlords. Property management companies look for a handful of qualifications to screen applicants, most of which can be attained through moderate groundwork.

Consider these five pre-application recommendations to win over landlords and property managers.

Evaluate Budget Constraints

Before applying for a rental property, make sure it is affordable. Don’t apply to apartments out of budget, even if the rent may be negotiable. Zillow allows users to search for rental homes and apartments within a designated region and price range, limiting results to practical options. Often times, landlords require income statements from potential tenants to determine whether they can afford monthly payments. Potential renters should make sure their finances are in order before applying and arrive prepared to provide documentation upon request.

Assess Records

When applying for a lease, a property management firm is most likely going to obtain a background check on potential tenants. This report includes the applicant’s credit score, criminal record, employment history and past residences. While some background scans are more extensive than others, it’s a good idea to prepare for all of the possible questions a landlord may have following a background check. If possible, take steps to build up credit before filling out a rental application. Set up online accounts for automatic bill pay to avoid missing payment deadlines. The longer bills are paid on time and in full, the higher a credit score rises. Further, increase monthly payments to eliminate as much debt as possible. Job stability also positively affects credit score, so it may be best to avoid risky career moves while attempting to build credit.

 

 

Avoid Credit Checks

If a potential renter is plagued by bad credit but needs an apartment right away, avoid property management companies requiring credit checks. As long as the tenant can prove their income level is sufficient enough to make monthly payments, the credit score shouldn’t matter. Smaller, privately-owned property management companies are less likely to run credit checks. However, most places still run criminal record checks, regardless of credit history policies.

Find References or Cosigners

References are especially important for first-time renters. Some landlords are willing to look past a bad credit report if a prospective tenant can provide positive references. Make sure those listed are relevant and unbiased, such as a coworker or manager. If the renter is involved in volunteer work, a supervisor is another good contact to put on a lease. Enlisting a co-signer is beneficial for renters with little to no credit. As long as the co-signer has a regular income and a good credit score, their signature agreeing to cover the rent if the tenant cannot assists in the approval process.

Increase Down Payment

Saving up for a higher deposit proves the applicant is serious about the apartment. This also eases the impact of a less than satisfactory credit history. The larger payment reduces property management concerns about late dues because they can deduct unpaid rent straight from the increased deposit. However, if all payments are made on time, it should be refunded in full. As with any standard lease, a portion of the deposit is intended to cover property repair costs and the sum won’t be returned to the tenant if they are liable for property damages.

Bad credit or a problematic renting background should not discourage a tenant from applying for the perfect rental. With these five preparations, many landlords are able to look past imperfect applications and feel comfortable extending leases. Renters with positive credit history looking at highly-sought properties should also use these recommendations to stand out as a low-risk, high-reward leaseholder.

By Jennifer Riner of Zillow

Should You Own a Vacation Home – Or Just Rent One When You Need To?

vacation homeThere’s probably a time in nearly everyone’s life when they contemplate owning a vacation home. It could be a lot of fun, and owning another piece of real estate can be a real boost to your retirement plans. But owning a vacation home can also be more complicated than owning a primary residence.

There are a number of factors that should be considered before buying a vacation home to determine if it’s the right decision for you.

When owning a vacation home makes sense

There can be strong reasons for owning a vacation home.

When you like one particular place. If you develop a strong attachment to a place you want to go to again and again, owning a vacation home in that location makes a lot of sense. Let’s say for example that you love to ski and you have one specific ski resort that you particularly like to go to. In that case, buying and owning a vacation property in or near that resort can work very well for you. Not only will the house be a familiar place to take vacations, but it’s also an excellent place to store your ski equipment in between.

It doesn’t have to be a ski chalet in the mountains either. It could be house at a favorite beach or even one located close to a major attraction, such as Disney World.

When there’s strong potential for rental income. Though it isn’t universally true for vacation properties, there are some in such premium locations that there is strong potential for rental income. You may not be able to earn enough rental income to cover all of the expenses of the property, but you may be able to earn enough to offset at least the majority of them.

In that way, your seasonal tenants at least partially subsidize the cost of you owning your vacation home. If you are earning a sizable amount of rental income and the property is also increasing in value, that will be a double win.

When you plan to retire to an area. This can be one of the most compelling reasons to own a vacation property. You will own with the idea that you will eventually retire to the home. If you own the house long enough, you may also be able to payoff the mortgage on it prior retirement. If you can, you will not only have a very desirable place to live, but you will also be mortgage-free just in time for retirement. Another double win.

When you should probably rent a vacation home as needed

But there might be even more reasons why you wouldn’t want to own a vacation home.

When you don’t have that one place you always want to go to. One of the most compelling reasons for buying a vacation home is because it is located in an area that you like to return to again and again. But if you don’t have such a place, there’s no point in owning. If you do, that’s simply a matter of adding another possession – and the attached set of expenses – to your collection.

When you don’t want to manage remote property. One of the qualities that makes a vacation home a vacation home, is that is located in an area that’s very different from where you normally live, and probably a substantial distance too. If you don’t like the idea of owning and managing a property so far from home with all the expenses that travel will bring  you probably shouldn’t own a vacation home.

When variety beckons. If you are the type of person who likes to take different vacations in a variety of locations, you probably don’t want to be tied down to a single vacation home. One of the great things about vacation homes is that if you don’t own one yourself, you can always rent somebody else’s. And if you’re the kind of person who prefers to vacation in hotels, a vacation home will serve no purpose anyway.

Rental income potential is weak. As much as you may like a certain vacation home or location, if the a local rental market is weak, you won’t be able get any help from potential tenants in paying for the cost of the property.

As a rule, vacation properties make poor investments anyway, at least from an income standpoint. Even in strong vacation rental markets, the fundamental problem is that everyone wants to be there in season which is also when you want to be there. And when it’s out of season  and you don’t want to be there “ no one else does either. Translation: there’s a lot of competition for the property in season.

If this isn’t something you feel like dealing with, but you’d need the rent income to help maintain the property, you probably don’t want to own one.

A vacation home is one of the biggest purchases you will ever make. Though it can provide incredible benefits, think long and hard about the many mechanics that go into it, and whether or not you feel ready and willing to take on all that’s involved.

Do you own a vacation home? What are the pros and cons of owning one? What would you recommend to someone who’s thinking about buying one?

photo by discountvacationrentalsonline

Are you Ready to Commit to Buying a Home?

Deciding to get on the property ladder is probably one of the biggest, if not the biggest financial decision you will make in your lifetime and not one you should consider lightly. So before you take the plunge and decide to start looking at houses for sale, have a good think about whether or not you are ready to make the commitment.

One of the most important things to remember is that missing payments on your mortgage can have serious implications â“ far more serious than being a few day’s late with your rent. So while you may have been used to having an easy going landlord who didn’t mind if your rent came in a day or two after the due date, your mortgage lender will not take so lenient a view. Missing mortgage repayments can have a negative effect on your credit rating and will make life very difficult for you if you decide to move to a bigger home and need to get an increase on your mortgage in the future. And ultimately, as you will have heard at the end of any radio or TV ad from a mortgage lender, you may lose your home if you do not keep up with your mortgage repayments.

Another thing to consider is how buying a home will impact on your current spending habits. If you are the kind of person who likes to eat out on a regular basis, go shopping for clothes at least once a month, and generally enjoy spending your money, then you will have to seriously cut back on all of this if you decide to start looking at houses for sale. Are you ready to do this? If you have only just started earning a decent amount of money after a few years spent working your way up the career ladder, then you may not be ready to go back to having a limited amount of money to spend during the week. Perhaps you should allow yourself the luxury of enjoying your cash for a couple of years before you start the serious business of saving for a deposit and all the other associated costs of buying a home. Once you’ve enjoyed the freedom of spending without guilt for a little while at least, you’ll probably feel far more inclined to get down to the serious saving afterwards.

Buying your first home is a wonderful feeling, no doubt about it. Just make sure you are ready to make the financial commitment that goes along with it.

Invest in your Home the Smart Way

invest in your homeThere are essentially two types of purchases that you can make: purchases that will increase in value over time, and purchases that will depreciate. Houses can go either way. If you don’t properly invest into your home then you may well see it becoming worth even less than you spent on it to begin with.

Here are a few tips to investing in your home and making sure that it’s worth more tomorrow than it is today:

Find Great Mortgage Loan Rates

Without great mortgage loan rates you wind up with a home that you’re still paying off long after you’ve actually paid the purchase price. You have interest rates and fees and fines when you make late payments, you may even wind up having to take out a second mortgage. Getting the right mortgage the first time is a big part of getting ahead on your home and winding up with an investment, not an expense.

Improve Your Own Neighborhood

A lot of people will buy a home and then worry that it’s depreciating in value because their neighbors are being foreclosed upon, local businesses are being shut down and so on and the value of the whole area is dropping no matter how much work they put into keeping their house in good condition. Well, what’s to stop these people from improving their own neighborhoods? There’s no reason to try and find a home in a great neighborhood if you’re not even going to support the small businesses in that area. There’s no reason to find a great neighborhood if you’re not going to talk to your neighbors. Be a part of your community, help out with community efforts, host barbecues on your front lawn to get to know the neighbors. Make your neighborhood a good place to live.

Wait for the Market

People who become overly anxious or worried about housing market slumps are missing the big picture and thinking in the short term. This is good news for you as an investor as it means that they’re often trying to bail out on a home simply because the price is dropping. The housing market always has ups and downs, it always comes back sooner or later. For the patient investor the housing slumps can be a major part of your strategy, but by riding out the slumps, at the very least, and waiting until the market looks better to try and make a sale. The economy may still be recovering right now, but a weak housing market right now does not necessarily mean that it will still be weak in five years. The patient prosper in real estate.

Renting Out

You don’t need to sell your home in order to turn a profit, you can turn it into a rental property. You don’t even need to spend a lot of money or worry too much about finding tenants to do this. Chances are you have a friend, a co-worker or a cousin who you can rent the home to at a fair price. Enough to cover mortgage payments, maintenance costs and so on. This can be a good way to turn a profit immediately or to allow your home to pay for itself while waiting until the perfect time to sell.

Whatever your long term strategy when it comes to investing in your home, long term planning is key. If you’re only looking to flip a home in a few month’s time you might not always get what you want out of the deal, but if you’re patient and hard working you may be able to turn a nice profit.

photo by alancleaver

Is 2012 the Time to Buy to Let Mortgages?

For many, homeownership has become impossible. People are leaving their homes in record numbers and this means that rental properties are in demand. As investors consider whether or not to take on a buy to let mortgage, they are shopping around for the right property as well as the right interest rate.

So how do today’s rates stack up to the rates of the past? Is this the year to take on that investment project and purchase rental property?

Lower Rates

When compared to the buy to let mortgages of the past, today’s rates have decreased somewhat, making it a great time to take the risk. While these rates are typically more than a traditional mortgage, the rates often follow the same pattern. Any change in interest rates means paying less for the property in the long run. There are benefits to taking advantage of these low rates.

In the future, as the financial situation gets better, there is a chance that the rates will once again increase. However, the interest rate is not the only thing to consider when determining whether or not 2012 is the year to venture into the buy to let industry.

Financing Difficulties

While the rates may be low, it does not mean that everyone can pick up rental property. The amount of money needed as a down payment has increased significantly. An individual looking to become a rental property owner needs to come up with much more capital down if they want to take on the venture.

In the past, lenders required around 15% of the property’s value to be put down. Now, the down payments often start around 25% and increase from there. If someone has the money to invest, they can pick up a great deal.

More Opportunities

With homeowners vacating their properties because of finances, there is a demand for rental property. People need a place to live and they are looking to rental companies and individuals to offer housing at an affordable price. For some, this means that a buy to let purchase is less of a risk.

They feel fairly confident in the fact that they will be able to find someone to rent the property. If they can find a tenant that pays on time, it can be a positive investment with long-term benefits.

If you are looking into a buy to let mortgage, be sure to shop around for the best deal or even consider Melbourne Mortgage for your needs. While you need to keep an eye on the interest rate, you also need to pay attention to the amount you need to put down as well as any fees or penalties that you will need to take care of.

5 Ways to Pay Off Your Mortgage Without Breaking the Bank

pay off your mortgageMortgages aren’t as easy to get as they were a few years ago. But even if you can’t refinance your loan there are steps you can take that will enable you to pay your loan off early and save you tens of thousands of dollars.

There are different ways you can do this, making it easier to find a way that will work in your particular situation. Find one of the five below that will be most comfortable for you.

For each example we’ll assume you have a 30 year mortgage for $200,000 at 4%, with a monthly payment of $955. Use this mortgage calculator to see how this will work for your particular situation. YOU CAN ALSO USE THIS MORTGAGE CALCULATOR FROM ZILLOW!

Make your payment based on a 15 year loan

Some people are hesitant to take a 15 year mortgage due to the higher payment, and opt for a 30 year term instead. The difference in payment is substantial so its understandable why you’d want the longer term. But what if you take a 30 year loan but still want to pay it off in 15 years?

You still can.

You don’t have to have a 15 year loan to pay your mortgage off in 15 years”you can simply pay your 30 year loan based on a 15 year payoff.

Using the loan numbers above, by increasing your payment from $955 a month to $1,479”the monthly payment for a 15 year mortgage”you’ll not only pay your loan off in 15 years, but you’ll also save over $77,000 in interest.

Increase your monthly payments a little

If you can’t afford to make your payment based on a 15 year loan term you can still payoff your mortgage early by making smaller additional payments. You can increase your monthly payment by a flat amount that’s comfortable for you and that will still allow you to shorten the loan term.

Let’s say that you decide that you can afford to add $100 to your payment each month, increasing it from $955 to $1,055. By doing this, you can shorten your loan term by 3 years and 9 nine months, effectively reducing your loan from 30 years to 26 years and three months.

Make one extra payment each year

By making one extra payment on your mortgage each year an extra $955 based on our example you can reduce your loan term from 30 years to less than 23. You’re not increasing your monthly payment, you’re just making one extra payment each year.

Make periodic lump sum payments

Maybe you don’t like being locked into a higher monthly payment that’s fine, you can still shorten the loan term.

If instead of going the higher payment route you decide to save up your money and make a lump sum additional payment once a year or any frequency you choose you will still pay your mortgage off faster.

By making a single lump sum additional payment of $2,000 each year, you can shorten your mortgage from 30 years to less than 23 years. Seeing what lump sum payments can do to shorten your loan term can be a real incentive to pay as much as you can and pay off the mortgage even sooner.

Apply windfalls to your mortgage

Let’s say you aren’t much of a saver and you can’t afford to make higher monthly payments–there’s still a way pay your loan off early.

When ever you get a windfall, apply it toward your mortgage.

Let’s say you get a $5,000 income tax refund, and you decide to put it toward your mortgage how much would it shorten your loan term with just a single, one-time payment? One year and four months just for making a single payment in year one of the mortgage term.

What if you did the same each year let’s say the tax refund is only $3,000, but each year you faithfully used it to prepay your mortgage. You’d reduce your mortgage term by nine years and seven months.

Just by applying your tax refund to your mortgage each year not a bad deal!  Instead of letting your money sit in a savings account, apply your money to your mortgage!

Is paying off your mortgage early worth the extra effort?

Imagine your life without a mortgage; you’d have more money to spend, more money to save, more money to invest more money for everything! The sooner you can make it happen the sooner you can do all those things.

Once you start thinking that way you have real incentive to make it happen. You can even combine one or more of the strategies above to make it happen even faster.

Is giving up some money now worth having extra money later?

photo by wwworks

When Should you go for a Reverse Mortgage?

reverse mortgageI’ve been reading up on reverse mortgages lately because I think it could be a good financial tool for my parents to pay their bills and add to the income that they are living on in their retirement years. I’ve found that it is actually a helpful program that even I may choose to use one day as a part of my retirement planning. Because I wanted to understand more about how reverse mortgages work, I looked up answers to some of the most commonly asked questions about them. Here’s what I found.

What is a reverse mortgage?

When you purchased your home, you made an agreement with your lender concerning your mortgage  rate. You also agreed to make monthly payments toward the value of that home, plus interest. A reverse mortgage is just the opposite; your lender will give you money each month, borrowing from the equity that you have put into that home. Repayment of the loan isn’t due until you pass away or are no longer living in the home.

Who qualifies for a reverse mortgage?

If you are a U.S. citizen of 62 years of age and own your own home, you qualify. Your eligibility for a reverse mortgage (and how much equity you can use from that mortgage) is usually determined by the value of your home, how much of that value you have paid thus far, and the ages of all people who own the home, including your spouse and/or children if you have any. I’ve also learned that to find the best  mortgage  rates for your reverse mortgage, you should compare lenders, just like you did to find your traditional mortgage.

Who shouldn’t get a reverse mortgage?

If you don’t plan to live in your home for much longer, then the reverse mortgage is not for you. This is because the repayment of the loan is due once you no longer use the home as your primary residence and because getting a reverse mortgage does entail paying an origination fee (and possibly other charges). Also, a reverse mortgage is not designed to use to cover a one-time expense, such as traveling or other recreational activities; rather, it should a part of a well-conceived financial plan.

Are there fees?

Yes, reverse mortgages do include fees, primarily the origination fee. You may also be charged a mortgage insurance premium. Your loan accrues interest over time, which means that each month you will be charged interest on not just the principle but also any interest that you incurred on the principle amount previously. Lastly, you are still responsible for the property taxes for your home.

How are payments distributed?

You can choose how you receive payments from your reverse mortgage. If you are using it to pay monthly bills, you can get regular payments each month much like the payments you made on your original mortgage. These payments can be made for a fixed amount of time or until you no longer occupy the home. However, if you would just like the financial security of knowing that you can tap into your home equity, you can opt to use your reverse mortgage like a line of credit, only withdrawing from it when you need to. You can also choose a combination of these two payment methods, which would enable you to receive a monthly payment and also have the ability to tap into your line of credit.

photo by nikcname

5 Reasons Why Renting is Better than Buying

reasons why renting is better than buyingWith marriage around the corner I seriously considered buying my first place.   After talking this idea over with Hannah, we both decided that it would be best if we rented and purchased a place later down the road.

So, this got me thinking, what are the advantages of renting over buying?   I’m sure you can do a simple Google search and find your answer but I’m going to share with you a couple reasons that really stick out to me, especially in this stage of my life.

 

1-  No maintenance or hidden costs

This is a real beauty of renting.   Anything that goes wrong is on the landlord’s shoulders.   Talk about a big relief!   It costs some big coin to fix things like broken refrigerators, heating and air conditioning units, and plumbing problems.   When you rent, all you have to do is make a call and hopefully it gets fixed stat.   I’ll be honest, getting married is expensive.   I wouldn’t want to add any additional expenses to my life!   I’d rather settle down with Hannah and get our finances in order before we made a move on a condo or home purchase.

 

2-  Flexibility for employment

We all know that the economy is still in shambles and could get worse at any moment.   If I had owned a home in Washington, I wouldn’t have been able to start my career down in San Diego!   When you rent, you can move around the country for employment opportunities.   This is assuming that your lease is up.   But heck, a 12 month lease is better than a 30 year mortgage!   I can’t tell you how many of my friends have had to move around the country to find a job.   Don’t let home ownership slow down your career growth.

 

3-  Fancier living and added perks

When you rent, you can typically live somewhere a little nicer than if you purchased.   We all have had dreams of living on the ocean or way high up in a high rise building.   If you rent, you can pursue these dreams and not break your bank.   I’m picky about marble countertops and updated bathrooms, so renting makes much more sense to be because it’s much more affordable when you don’t have a mortgage!

Another benefit is perks.   Many complexes that rent out their unit have community pools, BBQ areas, and even a gym.   What house has a pool or a home gym?   You’d have a shell out some cash to get these types of perks.   Plus, with a gym within your complex, you can say goodbye to gym memberships!   Perks often times equal cost savings.   It’s something to think about when you’re deciding between renting and buying your next place.

 

4-  Consistent budget

Don’t you just hate unexpected expenses?   I know I do!   When you rent, you will never have to worry about unexpected expenses like a broken shelve in the kitchen.   The landlord is required to fix any issues.   Not only are that but there hidden costs like HOA fees and taxes.   Let the landlord take care of it and you can go on living a worry free tenant life.   This also helps with knowing the exact amount of money you will owe your landlord at the end of the month.   It creates an environment where you can manage your money efficiently and know exactly how money is being spent.

 

5- Insurance is cheaper!

This is a little known fact but renter’s insurance is cheaper than home owner’s insurance!   I didn’t know this either until I did a little research.   Home owner’s insurance is sometimes 15 times the price of renter’s insurance.   This can result in hundreds of dollars every year.   I’ll take these savings any day!

 

Rent forever

In summary, as you can see, there are many reasons why renting is better than buying.   Now, if we were talking about investing in real estate for cash flow purposes, then this post would be completely difference.   But for the renting vs. owning argument, I’m still a believer in that renting is the way to go for most people!

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