Looking for a house on rent! This topic has always been debatable. Conserving the requirements of the tenants and the home buyers, the article tries to explore some of the pros and cons of investing in rental homes, and sheds light on why you should own a property. Read on to find more!
Like everyone else, you certainly want to own a property, but indeed, it is a tough decision to make that where to invest in your money. Investing in a home certainly requires a big capital, so the choice is always between buying a home and taking one for rent. However, it has always been a point of discussion among the market experts and the buyers or tenants. Some say that giving away money on rent is just like throwing away your money, while the tenants argue over the point that staying in a rented accommodation offers flexibility to stay in a place and a home of your choice, may be near your workplace or somewhere close to the markets.
Initiating Your House Hunt
It is a common trend to hire a real estate agent who can help you in buying a property or to find villas for sale in the South of France. However, if you wish to save bucks and find a property which best matches your requirements, experts suggest to look out for your own. The presence of an agent certainly creates an unnecessary pressure that you have to rent a place before you find a property of your choice. The most important thing being an unbiased approach which can help you to search for properties within your investing range.
Location is the keyword for finding a home since ages and it will remain there in the time to come as well. You need to dig out the data of the market where you need to take a home on rent and find the most suitable homes. Here are some of the reasons why you should go for homes on rent.
If you are someone who is looking to stay in a place for no more than 3-6 years, then renting is the best deal. Consider this, suppose you opt for buying a home in a particular area and decide to sell out within a within a couple years, there are big chances that you will have to face price depreciation, say about 6-7%. This amount also includes money like transfer taxes and the commission.
As a tenant, you are not liable to make any investments in the home if there are any wears and tears in the home. All you need to do is to pick up your phone and inform the landlord about the existing issue and it’s up to him/her to take care of the further proceedings.
No Additional Costs Associated
You need not worry about the extra costs associated with buying a home, which include insurance and maintenance costs.
No Creative Control
As a tenant, even if you wish to make some changes in the homes, like hanging some beautiful wall paintings (hammering some nails on the walls), buying heavy or voluminous furniture or even changing the color of the walls, you would need permission of the home owner for that.
Zero Returns on Investments
Being a tenant, you need to keep in this mind that you will have to give away a big amount of money on the rental homes. Do not expect a return on investment. We can say that with the starting of the month, it is the home owner who has all the reasons to smile!
Investing In The Properties
In the long term, investing in properties provide the best results, since properties bring in significant gains, and generating monthly income than ever imagined get. While making real estate investments, it is recommended to evaluate various options (not to mention, the budget) before making a decision, taking into account its location, condition of the property, projection of the property in long term, liquidity of assets, and potential returns.
Why Should You Invest In Properties?
Acquiring a property brings many benefits, among which are; the strengthening of family assets, gradual increase in the value of the property over the years, freedom to decorate your house without having to consult third parties and be sure to inherit at any given moment. One must also consider that owning a home brings some already discussed benefits, and some more, such as having a better credit history. Investing in a home should be considered a long term investment; also having a home will help keep your monthly expenses balanced as you do not have to pay a considerable amount month after month, that too for years! In the same way, as a homeowner you have the certainty and comfort of belonging to a neighborhood where you can set your livelihood beyond simple relationships.
If you are considering making an investment in residential properties or luxury real estate villas in Provence, you can expect annual net returns between 5 and 9% of the value of this property. For commercial properties, the returns ranging between 6 and 7%, and for offices, returns amounting to 10% are obtained.
The Concluding Remark
Talks and whereabouts of property investments and homeownership should be grounded in reality. Buying a home is not a matter of a few days and is not a magic to decide over this important decision of life. Certainly if you have taken a home on rent, you lose a lot when it comes to flexibility and freedom which you had otherwise enjoyed. If your budget allows to buy a home, do so! As nothing can be better than living in your own home.
Investing in a home indeed brings a pride of ownership and a sense of stability. If you live on rent and have to change your home with your family every 2-3 years, it brings a lot of pain. Trust me, looking for a new home on rent from scratch is actually a harrowing task!