Question

In some countries, most people prefer to rent their homes rather than buying them.
What are the advantages and disadvantages of renting a home? (Reported 2017, GT Test)

Answer 1

Answer:

Explanation: The following are some of the advantages and dis advantages of renting a home:

Advantages

Investment : When we take a place on rent we don`t have to make a lot of capital investment. As a result taking a place on rent requires just signing a contract ( which is valid for 11 months) and an advance deposit which is within one`s reach.

Locality: Sometimes taking a place on rent gives him/her an opportunity  to stay in a premium locality which one may not afford to buy.

Price fluctuations immunity: The frequent variations in property prices have minimal effect in rental rates.

Mobility: It is always desirable to look for rented place who are employed in a job which require frequent relocation. It becomes easy for them to vacate the place by providing a months notice in advance to the landlord rather be on constant stress of finding a new buyer for the owned property.

Responsibility: The responsibilities under a rented property is shared equally between the landlords and tenants. Major capital expenditure including cracked floor, seepage, etc are borne by the landlords . This safes a lot of money for the tenant.

Disadvantages:  

Money doesn't appreciate: Paying rent does not bring any monetary benefits for the tenant it only generates monthly income for the landlord. The ownership right still remains with the landlord inspite of making regular rental payments.

Maintenance cost: Daily repairs need to be undertaken by the tenant which at times becomes very irritating and expensive.

Renewing rental agreement: Getting the agreement renewed is a big headache. There is no guarantee that the agreement will be renewed and also the new agreement may come up with a hefty rental increase.

Restriction: There are certain restriction that a tenant has to undergo. Like getting renovation of a property as per his requirements, keeping pets as per one`s liking etc.

Hope this helps.