Reasons to Consider Renting Instead of Buying a Home

Many people hope to buy their own home. There are a number of benefits to doing so. You have more freedom to make renovations to your house and could be more financially stable when you are the owner. However, there are a number of reasons why you may be better off renting instead.

Benefits of Renting

You should consider what you will have to give up before you decide to become a property owner. Here are some of the advantages of renting instead of buying.

More Facilities

Many apartment complexes have recreational rooms, pools and other facilities to make your stay more pleasant. You should decide whether or not you would be willing to give them up.

Lower Expenses

You will have many more expenses when you own a house. Many landlords will cover some of your utilities when you are renting, but you will have to pay for them yourself when you are the owner. You will also have to shell out money for property taxes and hire contractors to do repairs when something breaks. You will also have to pay for homeowners insurance.

You won’t need to worry about these expenses when you are renting a property. You will need to pay for rental insurance instead, but the premiums will be much lower.

More Adaptable

You will need to make major changes to your lifestyle if you lose your job, have a major illness or suffer from any other hardship. You will have a more difficult time reducing your monthly expenses if you are committed to a monthly mortgage. You can always try to sell your house, but you probably won’t be able to do that right away (especially in this market). You also may not be able to sell your house for enough to break even on your mortgage.

You would still need to break a lease if you needed to move somewhere more affordable (unless you are renting month-to-month). However,  you will at least have a way out.

Renting is also ideal if you don’t know how long you are going to live somewhere. You may be about to take a job in another city or part of the country. You can move much more easily if you are renting.

Less Stressful

Many people quickly lose the romantic notions of home ownership when they realize how many headaches it can involve. You need to worry about making repairs, paying bills on time and dealing with a number of other hassles. You should speak with other homeowners before you commit to taking on that responsibility. You will also need to be aware of the type of house you are considering buying, because some houses will involve a lot more work than others.

Make an Informed Decision Before Being a Homeowner

There are many benefits to owning a home, but there are many advantages to renting as well. Renting can be cheaper and has fewer headaches. You need to make sure you understand what homeownership entails before you make the decision to buy a new home. 

Credit Rating Fall may Mean Fall in Pound

The UK economy is under further pressure following the decision by Moody’s, the credit rating agency, to downgrade the UK’s AAA rating to AA1. Although the government held the line that this as no disaster and, in the current climate, to be expected, others have suggested that the decision could be a danger to the economy as a whole. The finance world is bracing itself for a fall in the value of Sterling in the wake of the downgrade.

UK Vulnerable – Kenneth Clarke

Former chancellor Kenneth Clarke has espoused the opinion that, contrary to the coalition’s stance, the UK economy could face serious damage in light of the decision. His claims that more years are needed before recovery is possible are as follows, and have been influenced by the recent world finance problems:

"It seemed perfectly sensible to me at the time," Clarke told Sky News. "It would now if it were not for the fact that it is quite clear that the global economic and financial crisis is persisting, it's worse than we thought, several more years are required."

Lord Lawson Speaks

Another former chancellor, Lord Lawson, also expressed concern at the situation, in particular his worries that the situation may lead to a ‘run’ on Sterling:

"That would not be clever, that would not be sensible, that would not be helpful," said Lawson. "But I don't think that George Osborne wants that.”

Decision ‘Symbolic’ – Vince Cable

Other government spokesmen have claimed the downgrade to be nothing other than ‘symbolic’, with Vince Cable stating:

“In terms of the real economy, there is no reason why the downgrade should have any impact."

This view is one that goes largely against the concerns of the many analysts in the market that are convinced the new AA1 rating is a real threat to the economy in times of financial constraint. The continuing problems in the Eurozone have also added to the situation, and will continue to do so, and with the markets watching Sterling closely it will be interesting to see what happens with the world market as a whole.

Be Wary of the Dangers of Payday Loans

Many people turn to payday loans when they are facing serious financial problems. According to one recent report from Pew Charitable Trusts, approximately 70% of the people often who take out payday loans do so to pay for basic necessities such as food and rent. These people believe that they will be able to pay their loans back after they receive their next paycheck. Unfortunately, they often find themselves too far in debt.

Why Do People Want Payday Loans?

Unscrupulous payday lenders are making a lot of money offering loans to desperate customers. There are reportedly more payday loan companies in the United States than McDonalds restaurants.

Payday loans can be a terrible way to get cash. Payday lenders charge interest rates of 50% or higher. Customers usually fall behind with their payments and may even face bankruptcy.

Unfortunately, many customers still use payday loans. They are a very quick way to get cash when you are in need. You need to be aware of the dangers of payday loans before you decide to take one out.

What are the Dangers of Payday Loan Companies?

Most people don’t know how dangerous payday loans are when they take one out. Here are some risks that you need to be aware of.

Payday loans are far too easy to take out. Almost anybody can receive cash from a payday lender within less than half an hour. Unfortunately, you will be committed to the contract after you have signed the contract.

Payday lenders charge higher interest rates than most other creditors. According to a study from the Center for Responsible Lending, most payday lenders charge an interest rate of about 400%. Most payday lenders know that their borrowers will be paying usury interest rates, but they don’t advertise those rates.

Payday loans are supposed to be repaid within two weeks. However, most borrowers can’t make their payments. The fees compound quickly and borrowers fall further behind. This is why the Center for Responsible Lending warns customers that they need to be extremely careful when taking out a payday loan.

Many people have to take out additional payday loans just to meet their payments on current loans. More than three quarters of payday loans are made specifically to people who are trying to meet current payday loan obligations. This forces them even further into debt.

Ted Connelly wrote a book called the “Road Out of Debt.” Connelly said that people end up paying four to ten times the amount of the original loan.

Understand the Risks

Payday loans are some of the riskiest types of business you can run into. You will need to understand how dangerous they are before you decide to take on out. Most people who take out payday loans do so because they are desperate to pay basic living expenses. You should exhaust all your other options before you decide to turn to payday loans.