Is it better to Buy or Rent? Whether renting is better than buying depends on many factors. How do you know whether renting or owning is the way to go? The information listed here will assist you with coming up with the right decision.
For Sellers / Landlords:
- Who will tend to the property and pay for routine maintenance?
- Who pays for major repairs?
- What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
- Will you manage the property yourself, or hire an agent?
- What is the cost of hiring an agent?
- What if the renters change their minds? Who keeps the money in the escrow account?
- If the buyers change their minds, what will be required to put the property back on the market?
For Buyers:
- How much is the monthly rent vs monthly mortgage payment for a similar home?
- How much are the annual taxes, insurance, HOA fees ... needed to be considered?
- How locked in are you if you change your mind?
- What will it cost you to get out of the deal?
- How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?
- What the the closing costs involved and how much would it be?
Source: REALTOR® Magazine Online.
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