Advantages Of Renting

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The calculation is quite complex and has many limitations which might lead you to put too much trust in the results. For example, the price-to-rent calculator does not consider where the economy and prices are heading in the future, special circumstances relating to the area you are examining, etc. It also assumes historic prices rises. However, you can modify the calculation in advanced settings. Considering this, their calculator makes sense, i.e. as a simplified way to compare different options. You will find an example of a simpler way to calculate what makes sense and more about exceptional buying opportunities in the chapter “Your first time buy offers fantastic opportunities” on page 53. Renting Renting opportunities come in all ranges…show more content…
Make sure the property gets a thorough examination for any hidden defects preferably by an expert before you buy. One pitfall could be to wait forever for a market bottom. There have been long periods, where the real estate market has been in a stable development with no special buying opportunities. You also need to consider if your family-, career- and job situation are stable enough or if there are other uncertainties, which makes it unwise to buy, e.g., where it would be smart for you to live in the future. Transaction cost is relatively high, especially if you are forced to sell again within too short a period. Here is an example of how well you can do with a little luck and the right timing. It is about a nice house, but a fixer-upper bought at bargain price on an auction during summer vacation. A deal made close to a market bottom. Several things that all-in-all added up to a great deal. Here is the actual calculation. It focuses on the investment in itself, so cost of living in the house such as e.g. heating electricity and related extra or lower cost of transportation is not included. The table is simplified a bit and is included for your inspiration, if you ever want to consider a similar…show more content…
Selling, moving, and setting up a new home is quite expensive, time demanding and you never know if you will end up with nice neighbors. If you want to move residence and the real estate market is depressed, you might consider the fact that even though your own house price might be too low for your taste, then the price for your new dream home might be even lower. If you have the means to own two homes, then letting out the old one until prices come up might be a lucrative alternative to consider. If you want to move residence and the real estate market is in a boom you might be better of renting a house unless you are sure, that the prices will continue to rise. Boom and bust might exist at the same time but in different areas, so you might want to examine the statistics and consult a professional. What to buy Generally, the better the location the easier it will be to sell when you need to move on. Often in times of depression you might find that a home with the wrong location might be close to impossible to sell at a reasonable price whereas a home with a good location might prove much easier to sell and will in most circumstances keep a better sales

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