The Benefits of Leasing Your Home
Even if you can afford to buy a house, that doesn’t always mean it’s the best choice for your lifestyle. Avilla residents are renters by choice. They are at a point in their lives where they want to live in a home, but have no desire to be tied down by a mortgage, or deal with maintenance and associated expenses. There can be tremendous financial benefits to renting as opposed to buying a house of your own. Make sure your living situation is complimentary to the lifestyle YOU want!
Hidden Costs of Home Ownership
There’s a lot more to buying vs. leasing than simply comparing the cost of a monthly mortgage payment versus monthly rent. You might overlook some additional, hidden costs of ownership.
No Real Estate Taxes. An obvious benefit that Avilla residents have over homeowners is that they do not have to pay real estate taxes. Real estate taxes can be a hefty burden for homeowners and vary by county based on the estimated property value of the house.
No Big Down Payment. Unlike buying a home, you do not need a huge down payment to move into a rental property. A rental deposit is typically equal to the amount of one month’s rent, while a down payment for a house is much more substantial.
Lower Insurance Costs. While homeowners need to maintain a homeowner’s insurance policy, renters would be wise to invest in a renter’s insurance policy. Luckily for those who lease, renter’s insurance is much cheaper, and it covers quite a lot.
Lower Utility Costs. Avilla’s energy-saving features, efficient floor plans and green construction practices lead to a much more affordable home to heat, cool and power.
Access to Amenities. Another financial benefit to leasing over buying a house is having access to amenities that would otherwise be an enormous expense. Avilla residents enjoy hallmark amenities such as a pool, spa, ramadas and other great features, without being assessed an HOA fee.
Predictable Monthly Payments. When you lease, finances are much more predictable and typically a fixed amount for the span of the lease agreement. You can budget more effectively since you know the amount of rent you are required to pay. Meanwhile, mortgages and the amount of the property tax and insurance can fluctuate.
Being Stuck. When you lease, there’s also less risk of uncovering an unforeseen problem that you are on the hook for financially.
No market risk. When you buy a home, you take on the risk of the home’s value changing. By renting, residents are avoiding owing a mortgage that is potentially more than the house is worth.
No cash outlay required. There’s a tremendous amount of money required to close on a house, including the down payment and closing costs.
Decreasing Property Value. Property values go up and down, and while this may affect homeowners in a big way, it affects renters substantially less. Home value determines the amount of property taxes you pay, the amount of your mortgage and more. In a rocky housing market, renters are not as adversely affected.
Limiting Investment Diversity. Putting too much of your savings into a single, leveraged investment (your house) could be more risky over the long term than investing in a diversified investment portfolio of stocks and bonds. If you buy more house than you need, the large mortgage payments might not leave enough to save for unexpected emergencies, your retirement, college tuition, etc. An additional $200 a month could grow if you were to invest it in a diversified portfolio and compare it with all the home equity you will build up during the same time through mortgage payments.
Home Equity. Buyers hoping a home will improve their net worth should also make sure they are actually building equity in that asset. A low credit score could force you to pay a higher interest rate, and therefore pay more in interest, meaning that your house might need to appreciate in value more quickly than is realistic to have any hope of building up equity.
At Avilla, residents don’t have the burden of unexpected expenses that you’d need to take care of on your own.
Low maintenance costs. A definite advantage Avilla residents have over homeowners is that they don’t have maintenance costs or repair bills for items inside and outside the home. That includes the cost, and the time required, for potentially costly maintenance and repairs.
Decreased stress. Some say that owning a home leads to greater stress because you have to deal with your home’s problems.
Avilla residents value the flexibility of a lease with the lifestyle of a detached, single level home.
Financial flexibility. If you get into financial trouble and need to reduce your living expenses, it’s much easier to make changes to your life if you lease.
Career flexibility. When you lease, you’re not locked into your location if the job market or economy shift, or your career preferences and opportunities change.
Flexibility to Downsize. When you are a homeowner, it is much more difficult to break free of an expensive house because of the fees involved with buying and selling a home. By leasing, residents have more flexibility to downsize if needed.