Why Leasing Can Make Sense Over Buying
Investing in real estate is a milestone event, and requires careful planning and attention to detail. Potentially even requiring a Property Management Company to maintain it. As you navigate this process, you may wonder whether buying or leasing property makes the most sense for you at this stage of life. There are pros and cons to both, and the option you choose is very personal. While many homeowners feel that buying a home gives them more control over where they live, many homeowners in California opt to lease a property vs. buying to save money and give themselves more freedom and flexibility when it comes to where they live.
Leasing Saves Money
Buying a home is a significant investment. It requires a large down payment, and the monthly mortgage payment on a house is usually higher than monthly rent payments. Residents that rent are not responsible for real estate taxes, and since the landlord or a property management company takes care of regular maintenance, tenants save money on everyday expenses that come with home ownership. Leaving it in the hands of a Property Management company to worry about. When it comes to insurance, renters insurance is usually much more affordable than homeowners insurance, and tenants do not have to worry about what to do if/when the property value decreases. While some argue that leasing requires tenants to pay money towards something they will never actually own, some landlords offer lease-to-own options. Leasing is a great option for those who would prefer to spend less money a month on a mortgage and use that money doing the things they love. Leasing also allows tenants to build or repair their credit score by making consistent and timely payments.
Leasing Requires Less Responsibility
If the idea of routine home maintenance does not excite you, leasing may be a smart option for you. Not only are you not responsible for paying for all of the little issues that pop up in the home, but you do not have to go through the hassle of fixing it yourself or finding a contractor. When you lease, your landlord is responsible for quickly repairing home maintenance issues. Of course, as the tenant, it is your responsibility to take care of the home and be careful not to cause damages. But issues like a faulty AC, leaky roof, broken appliance or other problems that would make the home “uninhabitable.” If you are not a skilled DIYer or do not enjoy “around the house projects,” having a landlord or Property Manager take care of this for you may be one of the main reasons you choose to lease vs. buy.
Leasing Offers Freedom and Flexibility
When you buy a home, you are usually committing to the property and the community for an extended period of time. The home buying process can be detailed, time-consuming and expensive, and most homebuyers stay in the home they buy for 5+ years. This is a good option for people who are sure this is where they want to be for the long term, but for those who need more freedom and flexibility, home buying may be a little restrictive. Leasing a home gives you the flexibility to move or downsize with much shorter notice and less hassle than selling your home. While you may not have the same freedom to change the home to meet your needs as you would if you owned the home, many lessees prefer to live in a home they can’t make modifications to than live in a house that restricts them from moving if they need to.
Leasing a home also gives you the opportunity to invest in property outside of the area in which you live. It is not uncommon for investors to hire Temecula Property Management Companies or Murrieta Property Management Companies to help them maintain a home when they can not be there to do it themselves.
As with any major decision, there are pros and cons that come with leasing a home. Leasing is a common first step towards homeownership and gives tenants a more flexible and affordable living option if they aren’t quite ready for the commitment of buying a home. Contact a Lake Elsinore Property Management company (or a property management company in your area) for help navigating the world of purchasing and leasing real estate.
Benefit National Property Management manages properties in Murrieta, Temecula, Lake Elsinore, Wildomar, Winchester, and the San Diego Area.