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Renters Insurance
- the Landlord is
most likely
not liable.
Landlords Require. More on Renters Insurance
here
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Should
you buy or rent? The common theory
is that owning your home is cheaper then
renting. True or False? It depends on a
number of factors, the most important
being the cost of buying vs. the cost of
renting the same or similar home. Local Market
conditions determine price while your
personal needs also come into play.
| Common
Questions to Ask Yourself: |
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1.
How long do intend to live in the
area |
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2.
Your family status - are you
single, married (with children or
planning to have) |
|
3.
What is the local market
conditions - for both
renting and buying. |
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4. Why
would you buy vs rent ?
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5. Are
you looking at it is an investment
for yourself (move in, then sell
in a few years)
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6. Are
you looking at it as an investment
to buy an rent to someone else -
now (and you use later) or later
(and you use now)?
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7. Job
status- are you comfortable
in your job - stability no
relocation etc.
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| CHEAPER
TO RENT - Indicators |
|
How
can it be cheaper to rent vs
buy?
Carrying Costs are costs
associated with financially
maintaining a property. Costs
typically INCREASE each year or so
should the amount you allocate for
future costs. The include but are
not limited to:
-
Real
Estate Taxes
-
Insurance
-
Maintenance
-
Utilities
(Gas or Oil, Electric, Water,
Sewer, Garbage, Cable /
Internet) Note: Some of these
costs may be absorbed by a
landlord in their lease. You
can always ask for a
"gross" lease. Gross
means everything included.
-
Lawn
Care
-
Condo
or Association Dues (if a
condo or association managed)
-
Other
Fees, Permits etc
The
larger the home, generally the greater the
carrying costs, giving you, the renter,
more power in getting the best deal. IT
NEVER HURTS to offer LESS then the asking
price - whether you rent or buy - unless
the market conditions are real hot. |
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You
should also find out WHY the home is on the market
for rent. Are there marital problems forcing them to
rent, a job transfer, death in the family etc. The
more you know, the greater your chances are of
getting the best deal - whether buying or
renting.
|
Buy vs. Rent
Comparison Chart (from Ginnie Mae)
|
|
Advantages |
Considerations |
| Buy |
Property
builds equity |
Responsible
for maintenance |
| Sense
of community, stability, and security |
Responsible
for property taxes |
| Free
to change decor and landscaping |
Possibility
of foreclosure and loss of equity |
| Not
dependent on landlord to maintain property |
Less
mobility than renting |
| |
| Rent |
Little
or no responsibility for maintenance |
No
tax benefits |
| Easier
to move |
No
equity is built up |
| |
No
control over rent increases |
| |
Possibility
of eviction |
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