One Step Realty, Inc.

It used to be that owning a home was the smartest choice a person could make. With the current state of the housing market, most notably in Michigan, it may be smarter to rent a home than to own one.

One of the main benefits to owning a home used to be that homes appreciated year over year. This means your home’s value would rise anywhere from 2.5-10% per year in Michigan. All of that is gone with the current housing market. Most homes in Michigan have lost 10-20% of their value, and it may take decades before prices recover to their pre-crisis levels. With mortgages harder and harder to qualify for, and the economy still slowing, house prices may still decline further.

This housing crisis has put a lot of home owners under water on their mortgages. If you purchased your home for $100,000 with zero down, and the housing prices in your area drop 10%, you owe $100,000 for a $90,000 home. This situation makes it impossible to sell the home because of the large amount of money required at closing, so many of these home owners are turning their unsold homes into rental properties. Turning their properties into rental properties is excellent for them, because then they are at least getting some money to help make the mortgage payment.

For you, this means lower monthly rental bills. With so many rental houses on the market, rent is coming down, which means you can get a larger home for much less per month than if you were to purchase the home.  Also, you don’t risk ending up underwater or losing your hard-earned equity in a home that you purchased.

Not only will you protect yourself from losing money on a home purchase, but you also will not have to deal with any of the maintainance issues that come with being a home owner. If the plumbing breaks, the landlord is obligated to fix it. If the roof leaks, the landlord must make the repair. You will not have to spend any money repairing the home, as it is your landlord’s duty to keep the property in good working condition.

Renting in the current market can make a lot of sense, and if you’re looking to rent in Michigan, One Step Realty, Inc. can help you find an apartment or home to fit your needs. Give us a call today at 800-611-3766 and let us help you!