When Is It Wise to Rent Instead of Buying and What If You Have to Rent and Can't Build Equity
by: luise_volta
Total views: 562
Word Count: 442
The initial stopper in purchasing a home for most of us is funds and credit. If you can't swing a down payment or qualify for a loan then renting isn't so much an option as a necessity. Another stopper is the need for the support that renting is supposed to offer. If it breaks, leaks, or falls down it is handy, yet not always effective, to be able to call the landlord. Rental owners come in all sizes and types and some don't respond according to rental agreements. Picking your landlord may be as important as picking the rental itself.
Disabled or retired people who are not able to do regular maintenance and upkeep may look at renting as a wise choice. Apartments come with exterior painting and yard work included. Also, a community may work better for these two groups than single occupancy.
When forced to rent due to a lack of the cash needed for the down payment, it's easy to rent more than is needed and fail to save. The better plan is to see what you could make as a regular monthly mortgage payment and then rent for less than that amount. Usually mortgage payments are more than rent for a similar residence, so it is sometimes possible to rent for less and save the difference.
A case recently came to my attention where the person wanted to rent because she was unwilling to take on homeowner responsibility. She looked very carefully at what her monthly costs would be if she bought including maintenance, upkeep, and taxes. Next she searched for and eventually found a good rental for significantly less than that amount and moved in. She then put her down payment into an interest-bearing account and added the difference every month for thirty years. The amount she saved by being so highly disciplined, though substantial, wasn't what she would have realized in profit from the sale of a well maintained home but she factored in the stress that she had averted and felt her plan had been highly successful.
There isn't any "right" way. Don't decide to buy or rent because that's what others are doing or that's what you're familiar with. Look more closely at yourself and your needs and make a personalized choice that will support you in the future.
Article Source: http://www.ArticleStreet.com/profile/luise_volta-414.html
About the Author
Luise Volta's life has included careers in nursing, teaching pre-school, interior design, Real Estate sales, insurance adjusting, and dairy herd testing. Visit for Free Financial Information.
Rating: Not yet rated
Latest articles contributed by "luise_volta"
1: Aging, Elder Care, and Senior Retirement Centers2: Blaming Others for the Roadblocks in our Lives May Be a Way to Stay Stuck
3: What Are Food Supplements All About and How Can We Educate Ourselves on this Subject
4: A movement is Replacing New Year's Resolutions and It's Working for Those Willing to Give It a Try
5: Christmas Shopping Doesn't Have to be a Grueling Experience if We Approach it Methodically
6: We Often Don't Notice our Accumulation of Possessions Until They Take Us Over and Possess Us
7: How Can We Approach a Necessary Divorce Wisely and Well
8: What Can Be Done About Our Inability to Feel Comfortable When We're Alone
9: When Seniors Remarry Late in Life What is Different and What Pitfalls Could Be Avoided
10: Seniors Beyond Age Eighty May Need Extra TLC to be Able to Enter the Cyber-world for Fun and Profit