he real estate market is anything from the stock market
booming across the United bubble and subsequent crash of
States, especially in 2000, we realized frequently a
select areas of California as conservative approach to
well as Las Vegas. Even the investing serves us well when
sleepy town of Boise, Idaho is uncertainty surrounds the market.
experiencing record breaking
primary residential development.
Where ever you happen to live, Protect yourself and consider the
you have probably noticed it's advantages of renting or leasing
not so easy to get into that versus buying your own home. A
coveted house you have always renter assumes far less risk by
dreamed of, despite the favorable signing his/her name to a lease
mortgage rates. So what should agreement than when closing on a
you do? house. Typically a rental
agreement locks you into a
Lessons Learned from the Past contract for a short period of
time, relatively speaking, during
With such uncertainty around the which the rental rate is locked
real estate market, perhaps it is as well. Such a contract can
best to stay away from owning protect you from the downswings
your own property. Many so called of the real estate market,
experts predict the housing especially the volatility
market in the US has finally frequently demonstrated by
reach bubble status, and expect adjustable rate mortgages.
that bubble to burst in the near Granted, as a renter you don't
future. They may have submitted stand to gain any equity in the
their predictions a bit early, house should the market turn up.
but their advice should be However, you also don't expose
considered. If we learned yourself to the violent
downswings in housing values disappointment, and even anger
wrought by an oversaturated when things go wrong in the
market. Should you buy a house house. Pipes burst, flooding
now and a year later need to move occurs, air conditioning units
to pursue a new job opportunity, break during the scorching summer
what happens when your realize days of July, and heating systems
those inflated prices you paid fail in the dead of winter. All
for your house are not so these things can and will happen,
inflated anymore, and suddenly setting homeowners back
you owe more on your house than considerably. Thus, as a renter
it is worth? That is called you can avoid many of the major
negative equity, and financial investments owners must
instinctively you realize no good make to maintain the comfort and
can come of such a situation. livability provided by a
Hence renting offers flexibility, dwelling. Agreeing to a lease
both financially and physically agreement helps mitigate the
speaking. risks of living in a home or
apartment.
Avoiding the Headaches of
Ownership Weighing your Options
By agreeing only to rent the A rental or lease agreement can
dwelling, you manage to avoid offer many advantages to those of
many of the disadvantages you looking for a place to live.
associated with owning a house. Ultimately, each individual must
Normally the landlord is decide what is right for them.
responsible for general Some are more than willing to
maintenance of the flat. Many bear the risk inherent to the
home owners are quick to offer housing market because they have
their stories of frustration, a strong positive cash flow and
are in a position to endure the come back down to Earth will
twists and turns of the market. prove to be a successful
strategy. There is no shame in
Don't be afraid to weigh your signing that lease agreement,
options and consider the risks of living in an apartment for a year
owning versus renting. For many, or two before moving on to that
playing the game conservatively house you have wanted so badly.
and waiting for housing prices to
About the Author:
Adam Smith is a client account specialist with http://www.10xMarketing.com - More Visitors. More Buyers. More Revenue. For more information about lease agreements, including real estate advice and strategies, please visit http://www.oneminutemillionaire.com/affiliate/glossary/lease-agreement.asp
Source: www.isnare.com
