Big Rent Vs Buy Debate

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Pinellas County Homes, Real Estate

When people think of real estate, they often think of the process of buying and selling homes and property. Many people forget that rentals are also real estate and are often handled by realtors. This is not just true for high end rentals, such as business or manufacturing rentals, but even the simple apartment can be handled by an experienced realtor. These rentals are some of the most widely traded real estate on the market and some of the most economical for certain people.

Rental real estate is the most common type of real estate on the market. There are always apartments on the market looking for renters, but not always homes for sale. The number of business locations that are for rent is much higher than areas that are for sale. This is all has an economic basis behind it and drives the renter and rent real estate processes.

It is often much cheaper to rent real estate than it is to buy real estate. To rent real estate, one is often only required to provide a security deposit and first and possibly last month’s rent. Buying real estate often requires that one has a large deposit, enough money for the closing costs, and enough money for insurance and taxes. While renting an apartment can cost a couple thousand at most, buying a home is rarely less than several thousand. Even those mortgages that are assisted by the seller and set up with lower closing costs and low deposits end up costing more in the interest rates.

The up keep of rental real estate is also less than the upkeep of owned real estate. The typical apartment has all of the repairs covered by the land lord. The home owner is responsible for all repairs to the house and therefore can experience large bills at random times depending upon what may break in the home. Even the process of having the place maintained can be more expensive for a home owner than an apartment renter because the land lord is often the one responsible for the maintenance.

Home owner’s insurance can be very expensive, especially when owning pets. Renter insurance is cheaper because the personal property is all that is covered, not the real estate. While renter insurance can be a bit higher with a pet, the land lord is responsible for the home owner’s insurance and incurs the increase of allowing pets.

March 25th, 2010