Gilbert, AZ (PressExposure) October 08, 2009 -- The economy has a distinctively diverse effect on the real estate market, and with the unstable economy of today's market, many people can not help but wonder what are the smart decisions involving the real estate market, and what would work best for them. With the market overly saturated with foreclosures, many people find it difficult to sell while they struggle with a high mortgage, and their property decreasing with value as foreclosures increase in their area. With also having people who are wanting to buy finding themselves not qualifying for new home loans due to the banks new restrictions, as a way of trying to avoid new foreclosures. Renting seems to be a smart solution to helping many people overcome the difficult real estate market.
Many people decide to sell their property for various reasons, such as wanting to upgrade or downgrade to a different square footage, relocating to another city or state, or their high mortgage is too overwhelming and they face a possible foreclosure. For the owner of a real estate investment, with the high mortgages, and low values, it is very difficult to sell with renting their property to be a great solution. Many people are following real estate investors' advice by hiring a property management company with the knowledge and experience to find a good renter, and to take care of their property in their absence. Renters can be a benefit to owners in many ways by allowing them to relocate to another city or state, and to free up capital so that even a high mortgage is less strenuous, while they rent another place at a lower cost.
There are also many benefits of renting such as, if you know you will need to relocate to another city or state, then you do not have a long term mortgage to worry about, and you are able to relocate at any time with less stress. Typically the renter also pays less than an owner since taxes, insurance and HOA association fees are paid by the owner, therefore a renter is able to save more for a larger down payment if and when they decide to buy a real estate investment themselves. There are also programs such as a rent to own option that can help someone who wants to buy, but needs time to save a down payment, or needs time to repair their credit before they can qualify for a home loan. Lease agreements are also reported to the three major credit bureaus, allowing a renter to build a strong rental history, as well as a good credit score. Maintenance can also be costly and is often another concern that many homeowners face that as a renter, there is less stress knowing that any major repairs or maintenance required is the owner's responsibility.
For many reason, whether you own and you want to sell, or you are not ready to buy, renting is the smart decision that can offer many solutions that otherwise would seem like a difficult situation in a difficult economic time.