Housing and Real Estate

Renting a property can have several advantages over buying. If you are weighing up the options between renting and purchasing a property, it’s certainly worth considering renting. They are typically more affordable than purchasing a home outright, take less time and money in maintenance, and can save money on upkeep costs and homeowners/liability insurance.

A lot of people prefer to rent homes due to the convenience and affordability of upfront costs. When purchasing a home, a significant amount is required in form of a down payment – typically a percentage of the total price of the home. You will also be expected to pay insurance in addition to this payment as well as closing costs. Many companies will also ask for quite a large sum for property tax.

Not having to pay insurance or property tax year after year is itself a major benefit that can help you save money. Those who rent can pay insurance optionally if they wish to insure the items within the property, but the landlord remains responsible for building and fixture insurance. This eases the financial strain on the tenant as they will not have to worry about monthly insurance costs.

Upkeep and maintenance costs are also avoided by those who rent instead of buy. Faults such as leaking roofs, dodgy plumbing, uneven/sinking floors and more should all be taken care of by the homeowner and not the tenant. This can save the tenant a lot of money in the long run, as home maintenance can often cost a lot and break a person’s budget if left for too long.

People who rent are also at the benefit of not being rooted to a particular home should they need to move for whatever reason. Whilst many letting agents will require prospective tenants to sign a lease for a specified period of time, it is usually not for long (often up to a year). This allows the person much more freedom to move than when they are financially tied down to a home they have bought.

If for example you are required to move by your job, or you simply fancy a change of scenery, you would have to wait to sell your property before being able to afford a new place. Those renting simply wait until their lease expires, or can arrange for someone to sublease the flat whilst they move. People who rent have many more options and can enjoy living in an easier to afford home.

Dane Cross writes on behalf of One UK, a UK based estate agents who provide flats in Leeds.

Revenues from the lease or the creation or transfer of rights or powers of use or enjoyment of rustic and urban property or real rights that fall on these properties, are considered income from real estate. They have this account:

- The income from the lease of real property, unless the lease is done as an economic activity.
- The amounts received by the homeowner when it is under a sublease. The amounts received by the subtenant is considered income from capital.
- The amounts received by the rest of the property sold (furniture and fixtures, primarily) with rental housing.
- The net yield of the lease is the difference between gross income and deductible expenses, which are computed excluding VAT or IGIC. This amount can never be negative, so that will never be able to deduct expenses exceed the gross income. (more…)