The American Dream was once to save enough money that would go towards a down payment for a home. But after making the down payment, there is the problem of paying off for the whole purchase price of the property over time. Times have changed and as a result the common dream for many people as far as owning their own homes has changed as well.
Recently, studies have shown that home ownership is less favorable for people in comparison to renting. At first glance, an individual who was given the finances to do so would choose buying a home rather than renting one. But if careful analysis is employed, many of these individuals would realize that renting would be a better choice in both the short term and in the long run.
One of the biggest reasons why renting makes better sense than buying is the fact that home ownership comes with plenty of hefty expenses. First off, as the buyer, you would have to shoulder a lot of costs involved in the home-buying process. You would have to pay for the appraisal of the property, taxes as well as home insurance. There’s also the matter of spending for property repairs.
When renting, the tenant would not be burdened by such expenditures. One just has to look at home ownership with a practical view to see these benefits. Many individuals affected by the massive economic downturn in recent years have started to be more analytical which is why it makes a lot of sense to invest in a rental property today.
With this shift in the way people think about home ownership and renting, an investor could position himself to take advantage of the situation. Purchasing rental properties today at their current selling price would yield a lot of return once other investors start scouring the marketplace for properties to buy and turn into rentals.
Soon, more people will realize that renting makes more sense than buying a house and rental properties will not only increase in value, but you could also command premium rates for the rent especially if you have invested in a property located in a prime location.