Four Reasons To Rent Over Homeownership

Four Reasons to Rent over Homeownership:

Prior to the housing boom that went belly up this year, homeownership was considered a great investment. But now, with the breakout of home mortgage foreclosures, renting you home may be a more realistic and attractive option. There are four basic reasons:

1. By renting you can save money:

Most people believe that renters are just throwing their money away. But in reality, when you buy a home, you have to pay for closing fees, mortgage interest, property taxes, and private homeowners’ insurance. Oh and do not for about home maintenance! These are costs that have no return on your investment.  Maybe a better option for you is renting. You are much better off saving that money in a bank account or even investing in gold options. Did you know gold holdings amplified in the recession because of the minimal risk of devaluation associated with the precious metal? In the current scenario, gold is appreciating again - this latest rally is attributed to its inverse relationship with the dollar

2. The homeowners’ tax deductions are overstated:

General belief is that buying a home will save you money because the mortgage interest is tax-deductible. A study by the National Multi Housing Council (a national advocacy group representing the interests of large apartment firms in the U.S.) revealed that half of homeowners don’t get the expected tax break, because even with mortgage interest and property taxes, their total deductions do not exceed the standard federal tax deduction ($10,900 for couples and $5,450 for singles).

3. In today market there are more options available to renters:

Today more homeowners are converting their properties into rentals and then for their personal home are participating in Rent to Own options. They are also providing very attractive incentives to attract prospective tenants. In condo-heavy areas such as South Florida, where there is a very high vacancy rate, investors are undercutting apartment rates to create more interest. Some of the incentives are three free months, and upgraded amenities that may not be affordable if you were to invest in a new home.”

4. By renting you have flexibility:

When purchasing a home you are making a huge commitment, both financially and physically, therefore flexibility is lost. If for any reason you have to move, for example a job promotion/opportunity, you would need for your property to appreciate by no less than 10% to recover your sales costs that you have invested. In most cases that will take about five years. By renting you have the freedom and mobility you will need to find the right job and stability before you commit yourself to a substantial home investment.