| The real estate market is booming across the | | | | house are not so inflated anymore, and suddenly |
| United States, especially in select areas of | | | | you owe more on your house than it is worth? |
| California as well as Las Vegas. Even the sleepy | | | | That is called negative equity, and instinctively you |
| town of Boise, Idaho is experiencing record | | | | realize no good can come of such a situation. |
| breaking primary residential development. Where | | | | Hence renting offers flexibility, both financially and |
| ever you happen to live, you have probably | | | | physically speaking. |
| noticed it's not so easy to get into that coveted | | | | Avoiding the Headaches of Ownership |
| house you have always dreamed of, despite the | | | | By agreeing only to rent the dwelling, you manage |
| favorable mortgage rates. So what should you | | | | to avoid many of the disadvantages associated |
| do? | | | | with owning a house. Normally the landlord is |
| Lessons Learned from the Past | | | | responsible for general maintenance of the flat. |
| With such uncertainty around the real estate | | | | Many home owners are quick to offer their |
| market, perhaps it is best to stay away from | | | | stories of frustration, disappointment, and even |
| owning your own property. Many so called | | | | anger when things go wrong in the house. Pipes |
| experts predict the housing market in the US has | | | | burst, flooding occurs, air conditioning units break |
| finally reach bubble status, and expect that bubble | | | | during the scorching summer days of July, and |
| to burst in the near future. They may have | | | | heating systems fail in the dead of winter. All |
| submitted their predictions a bit early, but their | | | | these things can and will happen, setting |
| advice should be considered. If we learned | | | | homeowners back considerably. Thus, as a renter |
| anything from the stock market bubble and | | | | you can avoid many of the major financial |
| subsequent crash of 2000, we realized frequently | | | | investments owners must make to maintain the |
| a conservative approach to investing serves us | | | | comfort and livability provided by a dwelling. |
| well when uncertainty surrounds the market. | | | | Agreeing to a lease agreement helps mitigate the |
| Protect yourself and consider the advantages of | | | | risks of living in a home or apartment. |
| renting or leasing versus buying your own home. | | | | Weighing your Options |
| A renter assumes far less risk by signing his/her | | | | A rental or lease agreement can offer many |
| name to a lease agreement than when closing on | | | | advantages to those of you looking for a place to |
| a house. Typically a rental agreement locks you | | | | live. Ultimately, each individual must decide what is |
| into a contract for a short period of time, | | | | right for them. Some are more than willing to |
| relatively speaking, during which the rental rate is | | | | bear the risk inherent to the housing market |
| locked as well. Such a contract can protect you | | | | because they have a strong positive cash flow |
| from the downswings of the real estate market, | | | | and are in a position to endure the twists and |
| especially the volatility frequently demonstrated | | | | turns of the market. |
| by adjustable rate mortgages. Granted, as a | | | | Don't be afraid to weigh your options and consider |
| renter you don't stand to gain any equity in the | | | | the risks of owning versus renting. For many, |
| house should the market turn up. However, you | | | | playing the game conservatively and waiting for |
| also don't expose yourself to the violent | | | | housing prices to come back down to Earth will |
| downswings in housing values wrought by an | | | | prove to be a successful strategy. There is no |
| oversaturated market. Should you buy a house | | | | shame in signing that lease agreement, living in an |
| now and a year later need to move to pursue a | | | | apartment for a year or two before moving on |
| new job opportunity, what happens when your | | | | to that house you have wanted so badly. |
| realize those inflated prices you paid for your | | | | |