Are you looking to find a bigger living space for your family, or perhaps you need an office for your growing small business? If you are currently looking at local real estate, one of your first decisions will be whether to buy or rent. Here's why you might want to focus on property rental listings instead of buying the real estate to own.
No Down Payment
When buying real estate, it's usually suggested that you should save up to 20 percent of the listing price as a down payment. It may be possible to buy a house with no down payment, but your interest rate or terms will be considerably worse. When you rent, you know upfront what the fixed cost every month will be, and you won't have to put down a huge down payment beyond a standard security deposit, at least in most cases. Not having to deal with a down payment can provide you with more or better options, like which neighborhood you want to live in.
Avoid Maintenance and Repair
When you own a house or building, you own all of the problems that might develop over time as well. That means you will be responsible for regular maintenance, and if something breaks, you are going to foot the repair bill. With rental properties, you may be expected to do your best to keep it in good condition, but any serious maintenance tasks or repair work will be the responsibility of the landlord or building owner. This can save you some money and also give you peace of mind as you move forward.
No Worries About Property Value
If the real estate market in your area has prices going up at a steady pace, you might be concerned about what would happen if the market suddenly took a nose dive or your property value went down. When you rent a property, you don't have to worry about the value of your home going down and your mortgage lender suddenly getting antsy about your loan.
No Worries About Taxes
When you own a piece of real estate, you can expect to pay various taxes on the property. Exact amounts will vary based on where you live, but with rental properties, you likely won't have to deal with this kind of thing at all. Any additional fees you might pay as a renter will be clearly defined in your rental contract before you sign on the dotted line.