You've been told that the "American Dream" is to own your own home. While this is true for many people there are often times when rental living is more advantageous for you.
If you're unsure if owning or renting is best, take a look at the following to help determine if rental living in Chico or Redding is for you. Every person has their own unique situation and you'll have to figure out what's best for you.
People either buy their own homes or rent from someone else. There are big advantages to rental living as opposed to buying your own home. Here are a few worth mentioning:
If something goes wrong in the home you're renting you're most likely not out any money because your property manager is usually responsible for the upkeep and any problems that come up. All you have to do is submit a maintenance request. If you owned your own home you would be responsible for all the repairs. Many of these can get quite expensive.
Features such as swimming pools and fitness centers are standard in many of today's rental units. With home ownership both of these would be costly to install or you would have to join a gym or visit the community swimming pool to use them.
Real Estate Taxes
When renting, any taxes on the unit are paid by the owner. As a renter you don't owe any taxes on the rental property. These taxes can be high in some areas.
When buying a house a pretty large down payment is needed. Moving into a rental unit will require some money up front, like first or last month’s rent, but it's much less than a down payment on a home.
When words such as foreclosure and short sale are being tossed around, many people are wary to buy a home. The economy ebbs and flows, and the housing market is always affected by it in some way or another. If the economy is poor or stagnant, renting may be your best option.
Property values fluctuate, sometimes wildly, depending on the area and the state of the economy. Those values typically determine the amount of taxes you pay. If you're in a rental living situation you don’t have to worry about this.
If things get bad an you have unexpected emergency it can be difficult to sell your home quickly. You may end up having to pay your mortgage when you're not even living there. But if you rent and you're faced with circumstances that require downsizing or a move, you can just give notice and relocate when you need to.
Buying a home in your price range may mean living in an area of town you wouldn’t normally choose for yourself. However, if it’s safe, makes your commute shorter, is near schools you like, or is within walking distance of a park or shopping center, it may be a good area for you to be in. Rental living gives you more freedom to choose where to live.
Buying a home requires a significant initial investment. Renting does not. If you're going to need money to start a business, go to school or change careers, renting living may be a much better option for you.
If you just want a simpler life renting might be the ticket. You only have to pay your rent and you generally have no worries about such things as taxes and maintenance. Also, if you choose less square footage you will have less space to gather unwanted and useless stuff.
Home ownership generally ties you down to one place. Rental living allows you to move around more easily. This can be important for career changes and other opportunities.
While home ownership may be the "American Dream” for some, that dream is not meant for everyone. There are circumstances when home ownership is not feasible or desirable. In those cases rental living just might be the answer and there are some great rental properties out there! If you’re looking for a house or apartment to rent in Chico or Redding, check out our listings.