Monday, 22 August 2016

Folk Ballads associated with Renting a Property

There is always a debate between the advantages of owning a house vs. renting, and there are much advantages and disadvantages with both.

You need to dismiss certain myths attached with them:
·     My roommate suddenly went and there is no way I will cover her rent–A tenant is someone who has a written tenancy agreement with the landlord and is responsible to the landlord for the whole rent. But flatmates are different; they are not part of the tenancy agreement. They are responsible to the tenant for their share of the rent. If you are the tenant and your flatmate is gone, you are responsible for paying their share of the rent.

· The landlord is selling the house I am renting for. He cannot do that - He can. If he and his family members are moving into the house, he will only give you 42 days’ notice to move out according to the Residential Tenancies Act.

·  Property tax mythsA renter does not pay property taxes directly but a part of his rent includes it as landlords factor all of their carrying costs into determining their rental charges. The benefit of owning a house is that taxes generally are deductible but renters cannot subtract these types of taxes.

·  Investment myths - Homeowners have huge costs attached to their mortgage than renters have with their rent, but tenants do not take these savings and apply them to investments. During tough financial circumstances, renters take the savings and spend it on other necessities.

The decision to rent is complex and depends on many factors. For those not intending to buy a house for long, rent makes more sense.

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