Effect Of Increasing Real Estate Prices Raises Rental Income

Effect of Increasing Real Estate Prices Raises Rental Income

With the increasing prices in real estate, buying is no longer as interesting as before, but we often hear that renting is "paying in the void". Rent or buy? Below are some tips for making the right choice.

The cost of renting a dwelling is usually considered as an expense. In the case of the purchase price of a house, it is more an investment, since it is assumed that its value will increase. But the reality is not that simple.

Both buying and leasing have their advantages ... and disadvantages. The flexibility of the lease allows for example to change housing by terminating its lease or by not renewing it. 

For those who find the real estate market too high or above their means, renting can be a good option. Many of the homes are bought for rent. The tenant is therefore no longer limited to a traditional housing stock. He can access the same quality of housing, whether he rents a home or owns it.

If Interest rates rise too quickly, potential buyers will disappear. The market value of the property is still low. 

--Shailaja K