My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

Home Talks: Why It’s Smarter To Rent Than To Buy in Today’s Market

January 21, 2019

The high expenses of investing in real estate is the reason why so many people are afraid to make bold moves when it comes to buying property. Making a mistake can really hurt your finances both in the short and long term.

To help avoid making mistakes you need to arm yourself with as much knowledge as you can. Here are some of the more important considerations and tips for those who want to buy or invest in real estate.

Most people either rent or own the property that they live in. Whether you are living in an apartment in the city or a townhouse in the suburbs, you either own the property yourself or you have the right to possess and occupy the same.

Renting is best if you are just starting out

Renting is the best option for those who are thinking about moving out on their own for the first time. Buying your own place right away can be overwhelming. First of all, you have no real experience when it comes to managing your own home which means you are bound to make mistakes. Suppose you own a lot of valuable items. In that case, look at housing insurance for renters and ask your agent what coverage you need when shopping for a renter’s policy if you own a lot of expensive items.

Renting a place is a learning experience that can help you a lot to figure out what it means to have your own place. The cost of making mistakes is easier to manage when you are just renting the place you are staying at.

Why renting now is better than before in today’s housing market

The housing bubble that burst back in 2008 caused a shockwave that devastated the housing market. It was a time when the prices of homes were so cheap that many actually recommended that buying a home was a wiser investment that renting a place.

Today’s market is different. The cost of buying and maintaining a home has outpaced renting a home. Most agree that the trend is likely to continue so it really is better to just rent a place than to buy one, both in terms of upfront and long term costs.

The market is being aggressive with rent prices

If you are looking for a place to rent, then great! Ever since businesses like Airbnb started leveraging the Internet as infrastructure to facilitate renting property, real estate owners have been very aggressive in their prices to get a bigger slice of the market.

Some have even begun to rent out their properties and operate their business at a loss. This phenomenon is called negative gearing. Basically, property owners rent out their property, operate at a loss, and benefit from that loss by using it as an income tax deduction.

Flexibility in employment

One of the best advantages of not owning your own place is that frees up your finances to allow you to make big moves in case you get an excellent job offer. Putting a lot of your finances into something as expensive as a house can chain you to a certain geography. This limits your ability to develop your career and is likely to hurt you in the long run if you make a purchase when you have just started out.

There are so many reasons today why renting a place is a better idea than buying. So if you are thinking about getting your own place, look at rental units in your area and put some money back in your pocket.

Leave a Comment · House

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

What Are the Benefits and Risks of Dental Implants?

Installing a dental implant into your jaw could be a permanent way to replace a lost tooth. But are . . .

Read the Post

Choosing the Right Equipment for Outdoor Activities

Being active outdoors provides health benefits, including improved mental and physical health, . . .

Read the Post

Exploring Holistic Therapies for Efficient Healing

Home healthcare is popular for holistic healing, as a practitioner can come into one's home and . . .

Read the Post

Everything You Need to Know About Bedsores

Bedsores are a common yet debilitating affliction that occurs fairly easily. They can affect anyone . . .

Read the Post

5 Things To Add To A Prenup

Getting married is one of the most exciting times of life. Most people get married because they want . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2023 · Simply Pro by Bloom Blog Shop.