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Some of the Best Reasons to rent are that there are no maintenance costs or repair bills. When you rent a property, your landlord is responsible for all maintenance, improvement, and repairs. If an appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it. You can also have some peace of mind knowing that when you rent a home you will know your monthly rent payment every month. You won’t have to fix that toilet that doesn’t stop running or fix anything for that matter! Homeowners are always responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task, it can be awfully expensive for them.
Another financial benefit of renting is having access to amenities that would otherwise be a huge expense. The luxury of having everything paid for ready to go and sometimes even staged is amazing! Also, sometimes you don’t have to pay for your water bill or electric bill depending on the Landlord. So essentially you get all the perks and all the benefit. If a homeowner wanted to have access to amenities, it would likely cost thousands of dollars for installation and maintenance.
One of the major benefits of renting versus owning is that renters do not have to pay property taxes. Real estate taxes can be a huge financial commitment for homeowners and in Baltimore City they are some of the highest taxes in the State of Maryland. Although property tax calculations can be overwhelming, they are determined based on the estimated property value of the house and the amount of land. With newly built homes property taxes on the rise, you can rest assured that the money will not be coming out of your pocket.
The Next best Thing? No down payments! Or closing cost!
Another area where renters have a better financial deal is the up-front cost. Renters usually have to pay one month’s security deposit and that’s it! No settlement date, no waiting, sign the lease and you’re in! Security deposits are generally returned to you as the renter when you move out, given you haven’t damaged the rental property. That is one of the best ways to save money for a future down payment on your next Home you decide to buy here in Baltimore Maryland. Closing costs from a title company, inspections and much more can be detrimental to your wallet! Save that money instead and just get into a Baltimore Rental! When you Purchase your next home here with Mike Zorbach at Execuhome Realty, you will be purchasing a home with a mortgage, or cash if you are cool like that. You’re required to have a down payment depending on what type of loan that you choose. Typically around 3.5 to 20 percent of the property’s value. Of course, that down payment results in having equity in the home immediately upon moving in. So we would make sure you make a great financial purchase in the home that you love. Once you own a home free and clear, you have a valuable investment that renters never attain.
Remember, the amount needed for a down payment on a home is significantly more than a rental security deposit. As we spoke about it is a onetime security deposit, no waiting, no inspections, no appraisal, no title company you sign the lease and you’re in that weekend. But when you buy your dream home A 20% down payment on a house that has a market value of $200,000 is $40,000. The average apartment rental in Baltimore Maryland, even in Federal Hill or Canton, one of the most expensive places to live in Baltimore City, was $4,801 in July 2020.1 Those who don’t have money for a down payment are better off renting.
As a renter you can live practically anywhere, while homeowners are restricted to areas where they can afford to buy a house. Living in an expensive city such as Baltimore Maryland might be out of reach for most home buyers. Especially if you cant afford the higher taxes. But for renters it is more attainable to live where you want to live. Although rental homes can be high in areas where home values are also high, renters can more readily find an affordable monthly payment than home buyers can with the vigorous process one goes through to purchase a home. Mortgage lending discrimination and rental discrimination are illegal. If you think you’ve been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. Mike Zorbach always takes care of his customers no matter who you are! And we love all of our beautiful members of the community!
You don’t have to worry about whether you’ve made a good financial investment when you rent a home or if your property value will go up or down. This however will affect homeowners in a big way, it affects renters substantially less, if at all. Your home value can impact the amount of property taxes you pay as well as your mortgage payment and interest rate if you don’t have a fixed rate mortgage. In a roller coaster housing market, renters wont be affected.
As a renter you will have lower insurance costs if any at all. Homeowners need to maintain a homeowners insurance policy. For renters you would purchase a rental’s insurance policy. This is much cheaper and covers nearly everything owned, including furniture, computers, and valuables you will have in your rental home. The average cost of renter’s insurance is $200 per year, while the average homeowners insurance policy costs $1,211 per year. The Bottom Line
Owning a home can be beneficial for homeowners over the long run, due to the amount of equity they acquire in their home. Renters have nothing tangible to show for years of rental payments. However, for those who are looking to avoid the hassles of homeownership, the costs of upkeep, and property taxes, renting might be a better option. Of course, it depends on each person’s lifestyle, financial situation, and whether they’re working or in retirement.