Handy Guide for Renters and Landlords
It is indeed difficult to decide whether you should rent or buy a home. While several people would settle for renting because it is more affordable at the moment, there are also many who realize buying is more cost-effective over time.
Owning a home is everyone’s dream, but the housing market can move up and down. Before, the prices were attractive to buyers, but now properties are hardly affordable. For this reason, some individuals choose to rent than pay the substantial down payment associated with purchasing a property.
If you rent a home, you have monthly costs that are generally fixed. The rent rate can include utilities that you have to pay every month, such as cable, Internet, gas, and electric.
When you find the home you want to rent, you will typically be required to pay the first month of the rental price, along with a security deposit and the last month’s rent. Therefore, if you find an apartment that costs $1K per month, you will need to provide $3K upfront.
It is definitely lower than the down payment you will need to provide when you buy a house. Some houses can ask for as much as 50% of the total price of the home. If it costs $1 million, you will need to pay $500K upfront.
When you rent, the amount you pay is only small. Also, here is the good news: if you are the tenant, the landlord is responsible for repairs. For instance, the property has a leaky roof. You do not have to worry about paying the worker who fixed the problem because the landlord will take care of it.
Meanwhile, purchasing a suburb home does not always mean it is costly. You can find mortgage lenders that only require a down payment of five percent to 20 percent based on the price of the house. Some loans even have a lower threshold, but you should be aware that if you are asked to provide a down payment smaller than 20%, it is private mortgage insurance or PMI.
You can make things simpler as you calculate your mortgage with the help of our agent. She can give you a rough estimate of the payments that you should give every month, which include expenses such as your mortgage, homeowners insurance, and property taxes.
Your financial responsibility does not end with the mortgage payment that you have to pay every month. If there is a leaky roof, you will have to look for someone who can fix it, and you are in charge of paying that person.
Although you have a lot of payments to make and responsibilities when you own a home, you cannot deny that it will give you a sense of accomplishment. However, in some cases, you may consider that you will benefit more if you rent a property in Chicagoland.
Here are reasons why renting can be useful for you:
► You are not sure how long you will be living in the area because your work changes, for instance. You may also have other reasons, such as family circumstances.
Currently, you cannot afford to purchase a house.
► You do not want to be bothered with repairs or maintenance that owning a home will often require.
► Your finances may change soon, which may potentially make it a challenge for you to keep up with your mortgage payments.
If you are a landlord and you would like to keep your tenant, you should address their questions and issues they may have with the property as quickly as you can. Offer them with furnishings that will make you proud of the apartment or home for rent. Finally, give them a renewal incentive that they will find difficult to say no to.