According to a report of Consumer Housing Trends by Zillow, almost half of the millennial homeowners are moving to suburbs. The good news is a significant number of renters are also following them. The suburban lifestyle is not everyone’s cup of tea, but it has its unique perks that are hard to find in downtown areas. Read More →
Category Archives: Renting
Owning a home is almost twice as affordable as renting in terms of monthly payments. Both have their own perks, but renters can have better financial deals when the economy is poor. Many people have made a sizable amount of money just by switching from owning to renting.
Check out the reasons why renting is better than buying a home:
The Changed Perspective of Modern People
People belonged to the earlier generations such as Baby Boomers and Generation X used to purchase a home actually to live in it. They took out a 30-year mortgage and lived in that home for the rest of their life, gaining enough equity in the process to make the purchase profitable.
However, modern people don’t spend their whole life in just one home. They move, refinance, and use the home-sale profits on luxury goods, new cars, or vacations. So, renting makes more sense for them, at least financially.
Home Buying is Risky for Low-income People
Buying a home is a gamble where you have to make monthly mortgage installments, paying utility bills and many fees related to homeownership for years to come. It’s a great risk if you don’t have a steady income and handsome savings to sustain a financial hit without downsizing.
So, renting is safer as you don’t have to deal with a volatile market or revised mortgage rates.
Renters Don’t Need to Pay Maintenance or Repair Costs
Renting an apartment means you will only have to pay the rental, utility bills, and service charge (if there’s any). You landlord will have to pay all the maintenance, repair, and renovation costs. For example, if the shower stops working, the faucet drips water, or the roof leaks, the apartment owner is responsible for fixing these things.
Taxes & Insurance Costs
Renters don’t have to pay real estate taxes, which makes renting lucrative than homeownership. The fees vary by county, but it commonly accounts a lump sum of money. Besides, the amount of property taxes increases with upsizing the houses.
Homeowners also need to maintain an insurance policy. While renters can also take an insurance coverage, it’s much cheaper than the one available for the owners.
The Down Payment
The homebuyers have to pay a sizable amount in down payment, which is usually 20%. On the other hand, renters only have to make a deposit equivalent to one month’s rent, which is significantly less than the initial costs of buying a home.
In addition, a bigger down payment means homebuyers have to pay a lower interest rate throughout the mortgage period. So, many people opt for it even if it’s financially stressful.
The main benefit of renting is that it gives your freedom and flexibility in your financial life. You can downsize, upsize, refinance, or whatever you want at the convenient time.
The rise of mortgage rate at the end of 2016 and its volatile nature since the beginning of 2017 have changed many equations for the buyers and renters in the real estate market. The real estate database company Zillow has recently published an article predicting five factors for the people who are going to rent or have made the big decision of buying a home this year. Read More →
Getting security deposit back is one of the main concerns of the renters as soon as they land a new apartment. Most people lose it because of their own mistakes, and others are mostly ignorant about how to deal with the process. We’ve already covered a piece on some tips about how to get it back or at least the most of it after your lease is over. Read More →
As a tenant, it’s natural for you to expect all of your deposit back at the time of moving out. However, many landlords don’t play fair and don’t pay your full deposit back. Sometimes, they don’t pay any refund at all!
Some useful steps are there that you can take to get your deposit back. Check them out: Read More →
We’ve already covered a topic on how to find an apartment within a short notice. Moving into a new place is a colossal task. Besides, you have to take care of some things as soon as after the move. Read More →
You may don’t have any intention to move to another place or at least not in the near future. But, who knows! You never know when life throws you a curve! You may have found a new job that requires you to move halfway across the country within a week or two. Or, a sudden change of circumstance may force you to change your current apartment when it’s just a week or two before your lease is up. Read More →
It’s particularly difficult to negotiate a lower rent in a booming rental market. In fact, landlords these days don’t want to lower the rent even if you are willing to sign a long-term lease. In most cases, the renters have to rent the apartment or sign a new contract at the amount fixed by the owner.
However, fret not! Sharp tenants always find some ways to take a negotiation in their favor. Check out the following ways to know how to gain the upper hand while negotiating rent with your landlord: Read More →
Renting an apartment does not involve the hassles and tremendous prep work involved in buying a house. However, it does not also mean that you’ll just shift into the first apartment where the landlord offers you cheap rent.
Choosing a rental apartment requires you not only to consider the monthly rent but also to consider the whole picture such as the neighborhood, median rent prices, proximity to workplace, etc. Read More →