Like every other thing in this universe, renting real estatehas its own set of cons. Since I talked about pros of renting last time, let me shed some light on the cons today –
Top 3 Cons of Renting a Real Estate Property
1. No Tax Benefits
There is a tax benefit when you buy a home and follow somespecific terms and conditions. With this tax benefit, you can save a huge amount of money.
For this, you’ll have to buy a house using a mortgage loan. To get a mortgage loan and to check whether you’re eligible for a mortgage loan or not, talk to your nearby money lender or bank. After buying a house with a mortgage loan, you’ll have to live in that house for a minimum of 2 years of the 5 years before selling your house. If you can follow these terms and conditions, you can get up to $250,000 tax-free benefit.
But when you don’t own any house, you cannot avail of this huge amount of tax-free benefit. Besides, you’ll be paying money for rent fees that will never come back to you.
2. Paying Someone Else’s Mortgage
When you rent a house, you’re actually paying the owner’s mortgage fees. Some owners buy a real estate property and give that property for rent. Then the homeowners pay the mortgage fees with the money they get from rent. It’s more like you’re paying for the home owner’s investment, and at the end of the contract, you won’t get any share of the property, but the owner will be free from mortgage. Also, if you make any updates or upgrades in the house, you’re financing the landlord’s investment.
But if you buy a house with a mortgage and repay the mortgage fees with the same amount of money you were going to pay as rent, you can become a house owner after a certain period. So, make a smart decision and consult with the moneylender or the bank to check which mortgage schemes suit your budget.
3. Might Need to Movewith Short Notice
The homeowner can tell you anytime (month to month lease) to leave the house, and sometimes it can be on short notice. It becomes very difficult when the homeowner asks you to leave the house in a short time. Besides, sometimes it’s difficult to find a suitable apartment or house in your budget. Many families fail to find their suitable houses or apartments and settle in a house which they didn’t like. This is a major problem when you rent a house. These are the few cons of renting a house. When you rent a house, you’ll be paying for years, and even after 20 to 30 years of monthly rents, you won’t own any property. You’ll have to pay rental fees even when you retire from your job.0