For some people, buying a home is the ultimate achievement. However, there are other people who feel that residential leasing is the better option. If you are currently torn between buying and leasing a home, start by taking the necessary time to look at some of the benefits associated with residential property leasing. When finished, you may be pleasantly surprised at what you discover.
Reasons for Leasing as Opposed to Buying
- Maintenance and Repair Expenses – When something in a home goes wrong or breaks, it is the homeowner’s responsibility to pay for repairs. In addition, there are ongoing costs for keeping a home properly maintained. While some expenses are minor, others cost thousands of dollars. For instance, to have a new roof installed, a homeowner will easily pay anywhere from $10,000 to $30,000. One benefit of residential leasing is that the costs for both maintenance and repair fall back on the landlord.
- Taxes – Yet another reason why leasing a home makes more sense is that, as the tenant, you are not required to pay real estate taxes. The exact amount depends on the county where the home is located, with some counties having extremely high tax rates.
- Down Payment – When leasing a home, most landlords require one month’s rent and a security deposit. Therefore, if your lease was $1,200 a month, you would initially spend $2,400. If a landlord requires both a first and last month’s rent plus security deposit, that amount jumps to $3,600. However, if you were to purchase a $200,000 home with a required 5 percent down payment, you would spend $10,000, a substantial difference.
- Renter’s Market – Although the economy has stabilized, homes are still being foreclosed on daily. As a result, there is an abundance of inventory for people interested in residential property leasing. This provides you with an incredible opportunity for finding a home that fits your exact needs.
- Insurance – When comparing home buying and residential leasing, the cost of insurance protection is less for leasing. For people who own homes, homeowner insurance is mandatory. In Canada, this averages $850 a year. In comparison, a $100,000 renter’s insurance policy is only about $30 a month, or $360 a year.
To gain more information about the perks of residential leasing or for assistance in finding the perfect place to live, please call us today. With our experience and expertise in the field of real estate, we are confident that we can help you find the perfect home to lease.