The real estate market is one that fluctuates and is strongly affected by the economy among many other factors. Numerous people have become quite wealthy when making investments in real estate. However, many have also lost the shirts off their backs doing the same, especially of late with the global economic crisis. Below, discover why it is a good time to rent a house rather than by one.
Those who have made money in real estate are very strong advocates in such investments. However, investing in real estate is one thing, owning your own home is yet another. Specialists agree, after having done the calculations, that a home just costs way too much in terms of mortgage payments, especially if they are going be repaid slowly and over a long term.
That is because the interest far exceeds the principal, driving up the cost extensively. Therefore, many disagree with owning homes, especially during unstable economical times.
However, people would also argue that it is a good opportunity to buy low. Sure it is, but this unstable economy can bring other problems. Most people should consider leasing a home, because there are so many opportunities to do so for much less.
Consider owning a home and having to suffer a severe blow to your income. Quite often, this could lead to foreclosure and bankruptcy. Once that happens, the future is bleak because there will be no credit available. And, we live in a credit dependent society. Furthermore, the real estate market could stay low for a very long time, tying up your money that could be used elsewhere to bring greater returns. As a tenant, if a severe blow to income occurs, it would be a matter of breaking the lease and moving on.
Above are many viable reasons as to why it is a good time to rent a house and avoid buying at present. Carefully think about where your money should go to be the safest investment possible.