Ready to sign the lease agreement
Explore the advantages of signing a lease agreement.
The real estate market is booming in different areas. You have probably noticed it’s not so easy to get into that dreamed house, despite the favorable mortgage rates.
Advantages of a lease agreement
With such uncertainty around the real estate market, perhaps it is best to stay away from owning your own property.
Protect yourself and consider the advantages of renting or leasing versus buying your own home. A renter assumes far less risk by signing his/her name to a lease agreement than when closing on a house.
Typically a rental agreement locks you into a contract for a short period of time, during which the rental rate is locked as well. Such a contract can protect you from the downswings of the real estate market.
Granted, as a renter you don’t stand to gain any equity in the house should the market turn up. However, you also don’t expose yourself to the violent downswings in housing values wrought by an oversaturated market
Become more mobile.
Should you buy a house now and a year later need to move to pursue a new job opportunity, what happens when your realize those inflated prices you paid for your house are not so inflated anymore, and suddenly you owe more on your house than it is worth?
That is called negative equity, and instinctively you realize no good can come of such a situation. Hence renting offers flexibility, both financially and physically speaking.
Avoiding the Headaches of Ownership
By agreeing only to rent the property, you manage to avoid many of the disadvantages associated with owning a house. Normally the landlord is responsible for general maintenance of the flat.
Many home owners are quick to offer their stories of frustration, disappointment, and even anger when things go wrong in the house. Pipes burst, flooding occurs, air conditioning units break and heating systems fail in the dead of winter. All these things can and will happen, setting homeowners back considerably.
Thus, as a renter you can avoid many of the major financial investments owners must make to maintain the livability. Agreeing to a lease agreement helps mitigate the risks of living in a home or apartment.
Weighing your Options
A rental or lease agreement can offer many advantages to those of you looking for a place to live. Ultimately, each individual must decide what is right for them. Some are more than willing to bear the risk inherent to the housing market because they have big savings and are in a position to endure the twists and turns of the market.
A lease agreement could be the best option for you
Don’t be afraid to weigh your options and consider the risks of owning versus renting. There is no shame in signing that lease agreement and living in an apartment for a couple of years. Then move on to that house you have wanted so badly.
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