Are Renters Selling Themselves Short?

by Isaac Benmergui, Esq on November 16, 2011

Renters are being billed as the next mortgage crisis, according to the National Association of Realtors’ House Logic website. Although renting may be more affordable in the short-term, in the long-run renters could be cutting themselves out hundreds of thousands of dollars.

The rise in foreclosures has made renting more attractive to former homeowners that are seeing the cost of keeping the roof over their heads fall by a few thousand dollars a month. Depending on the market, a renter could be paying a few hundred, instead of a few thousand dollars and not have to worry about repairs or property taxes. The problem is that renters don’t look at the long-term picture.

Rents increase and fixed mortgages do not. A house appreciates in value, and the homeowner builds equity. And at some point, the mortgage ends, while renters have to keep paying through their retirement years, and the rent never goes down. Every year that rent payment will eat up more of the retired renter’s savings.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

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