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Real Estate: Is Renting A House A Better Option For You? by Andrew Stratton





Real Estate: Is Renting A House A Better Option For You? by
Article Posted: 10/12/2009
Article Views: 200
Articles Written: 5522
Word Count: 514
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Real Estate: Is Renting A House A Better Option For You?


 
Real Estate
Most people probably think that renting a home is waste of money because you have nothing to show for it in the end. But, there are many instances when opting for a rental house is a far better choice than buying. Consider these issues to determine if renting is for you:

Bad credit - In this housing market, you can forget about getting a home loan if you have mediocre or poor credit. While this may change once the climate improves, you need to work on increasing your credit score. In the meantime, a rental house is a perfect way to save money and it also helps you improve your score if you make your payments on time. A credit check is done for renting, but the standards are not as stringent.

No down payment - Another result of the current economy, banks are less lenient in their lending and most are requiring a minimum of 20% down on a home purchase. This is a huge lump sum of money to come up with all at once.

Less paperwork - Buying a house these days requires paperwork as thick as several big city phone books put together and it is full of legal mumbo jumbo. To rent, you sign a lease agreement.

No stability - How long are you going to be in this location? If you know that your job or some other situation will require you to move in 3-5 years, it would cost you more to buy a house. First of all, you will have paid exorbitant fees at the start - closing costs, commissions and the down payment.

Also, depending on the market, you will not have built up enough equity in the home by the time you are ready to sell to make it worth it. If you move a lot, you will end up losing a lot of money if you buy.

Less responsibility - With a rental house, you are not responsible for the maintenance of the home. Yes, you have to keep it clean, but for major issues, the landlord has to pay. Think about how expensive a new roof is or a new air conditioning unit. Painting the exterior and repairing the landscaping also falls under his responsibility.

Freedom - As a homeowner, you are tied to a 15-30 year mortgage. By renting, you can have a contract of as little as 6 months depending on the terms and conditions. So, if you have nomadic spirit, you have the freedom to move whenever your heart desires.

Find a real estate agent who handles home sales and rental properties. Crunch the numbers consider the above issues and talk to the agent about your options. You may want to be a homeowner, but it may not be in the cards right now. Be patient, save your money, watch your credit score and enjoy the benefits of a rental house.

In Baton Rouge, real estate agent will assist you in the buying/selling process of a house. To know more and explore your options, visit http://www.realestatelouisiana.com

Related Articles - real estate baton rouge louisiana, real estate in baton rouge, baton rouge la real estate,

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