Education and news for smart DIY landlords!
Owning a house is considered to be one of the best decisions in life, but that doesn’t mean that renting is wrong. And while buying property has its upside, there are also advantages of renting depending on your preferences. That is why today, we’re going to talk about why renting for a place to live makes more sense than purchasing one.
There are jobs that require employees to move from time to time for exchanging assignments or management. If yours happens to be one of those, renting is the best option for you. Buying a property when you know that you’re going to move eventually in a year or a few years from now would be a bad financial decision.
An easily affordable place does sound appealing to purchase, but if the neighborhood is riddled with problems such as crime or bad sanitation, then you're going to regret living there for years. Communities are not perfect and there are a lot of issues that surround them. Depending on what kind of neighborhood you want to live in, renting for a while at your chosen location helps you in making the decision whether to buy or not.
If you buy a property now, chances are it will decrease its value the next year or two. And if you’re going to move to another place then decide to sell that property, you are already at a loss. Renting costs also differ from time to time and if the rent at your current place becomes absurdly expensive, then the decision to move to a cheaper one won’t be a hard one to make. Also, the cost of rent might be lesser than buying the property in a long term.
In owning property, credit scores are required for a mortgage. Having a bad one or just not having one at all are grounds for a loan rejection. Renting for a while to settle into a high credit score value or to have a good one is a wise decision. Also, sometimes a good credit score makes loan agencies give you a lower interest rate.
As a homeowner, there are a lot of costs for maintenances and improvements. Such as cleaning the area or landscaping. Sometimes spending money dealing with these kinds of stuff is a hassle, and sometimes you just don’t have the time. Whereas renting, all of these issues can be dealt with by the landlord or the owner as part of their services.
Let’s just say that there’s this property you really want to buy but can’t afford it this instant. You can live in this property though, through renting, and if you’re lucky then you can also rent to own it.
Okay, if you can’t rent to own it then saving up for it is a good option. The best way to do this is to rent for a while. Rent at an affordable place that helps you save, just in time for you to get the house you want before it gets sold.
There are a lot of reasons that make renting a property a better path to take rather than buying one. These are just some of them, and we want to help you in making the right choice. But whatever choice you make, it is important to consider the pros and cons of being a tenant vs homeowner depending on your situation!
There is no better time than now to become a landlord. You can make a living with rental properties especially that more individuals prefer renting. Finally, I offer you the opportunity to take my complete landlording course: Landlord Prep: Video E-Course and How-To Tutorials. Everything you need to know to become not just a landlord, but a successful landlord, is here.