Why Buying Rental Property in Balham is a Great Idea

“Renting is throwing money away.” “After 15 years, that rent could be the mortgage payment.” “Renting is not investing, it’s careless spending.” These are just a few arguments of those who prefer to spend money by purchasing a house. According to them, buying outright sounds very reasonable, but here’s another set of arguments that will have you leaning towards your local rental property in Balham:

Suppose the rent does not differ much from one month’s mortgage. This may be great in a rental situation because you can quickly and easily move into a cheaper residence. However, if you’re under a mortgage, it’s much more difficult. It’s also easy to negotiate a reduction in rent with your landlord, rather than a mortgage discount with your banker.

Every 10-15 years, your house will need a serious remodeling investment due to wear. But in the case of renting, you will not have to worry about it. You can also negotiate rent that does not include the hidden costs of living in a big city. For example, property tax and garbage collection fees in Denver are quite high, but in Greeley they are not as bad.

If you are paying a mortgage, and you happen to die, the debt passes to your heirs. So, one thing you have to ask yourself is if you are willing to pass on that responsibility to your children? In times of crisis, many people waive inheritance via the cost of inheritance tax. That does not happen in the case of property management in Greeley CO.

If we buy a house, it will take about 25-35 years to pay for it. Thereafter, if we sell it, several things can happen: you use that money to upgrade to another home or it can cost us the same. You have to pay taxes on the capital gain as well. All this does not happen when you rent.

Investing in a home is relative. After 40 years you would have to make yourself realize how much you spent on the mortgage, several renovations, improvements, community expenses, home insurance, etc. Renting will always cost less than buying. In short, those who rent might seem to poorer than home buyers in the end. But since no one can predict the future, they are more likely to have better spent their time living their life instead of worrying about mortgage issues.