When it comes to making the decision to enter a lease with rental property management in Jacksonville versus researching property sales or Florida foreclosures in the area, it pays to take a step back and look at the economic benefit of each over time.
The biggest reason so many people turn to renting properties is because of the instant financial ease with which one can find rental property management solutions. When you are renting a home, you often merely need to prove your income is three times more than the rent that you’ll be paying every month. There is no oversized deposit either. Rental property management agents often ask for a deposit the same size as the monthly rental payment, while sometimes you might need to put down the amount of two month’s rent to cover the last month as well as the deposit.
While this is economically difficult for some renters, it is a much smaller amount of upfront cost than what is required when purchasing a home. The required amount of money needed for a deposit on a house depends on factors like individual credit and the price of the home. However, many mortgage companies will require up to 20 percent in a deposit, which makes purchasing a home seem out of the question for many renters.
Unfortunately, this looming deposit puts a negative spin on the idea of home ownership, as since it is so pricey to get started many renters assume owning a home is more expensive than renting in general. In general, that just isn’t true.
Throughout most of the country, it only takes three short years for owning a home to become more financially advantageous than renting. However, here in Florida that number is even smaller.
After just ONE year, owning a home can be more financially advantageous than renting.
There are a few pretty obvious reasons for this. To start, when you own a home your monthly mortgage payment goes into purchasing equity that you own. You aren’t paying the money to someone else to allow you to temporarily live on their property. You are paying down a balance on a loan so that you are one step closer to fully owning your own piece of earth. When you rent, the money you pay every month never comes back to you.
Also, those who own their own home are more likely to stay put, thus cutting down on potential moving expenses that many renters encounter yearly as leases end and they again find another home to venture to.
Throughout most of the country, housing prices are at their most affordable level in modern history. This means many renters who didn’t before think owning a home was an option for them can rethink their living arrangements.