Establishing Your Home Renting Criteria
Deciding whether to purchase a home or to rent one is a decision influenced by an array of important factors. They include Ability to purchase vs. rent: Do you have enough savings for a down payment to purchase a home? Do you have a good credit rating and adequate annual income? Duration of residency: Do you need a residency for more than two years? Knowledge of the housing market place: Are you uncertain about where you want to live?

Buying:
To purchase a home a buyer needs to determine first what is affordable. The best way to arrive at this figure is to consult with a mortgage broker or lender. What is entailed is a review your annual income and expenses, your credit report and score and your level of savings. The consultations will reveal whether you can afford the type of home you want. The mortgage broker/lender is also able to offer advice on how to improve your purchasing ability and even make possible a purchase that might seem impossible. In some cases the broker/lender might show you how to improve the type of loan to a more standard or preferred loan from a higher-interest loan.

The benefits of purchasing largely are two-fold. Buying a home as a primary residence gives you tax benefits by allowing you to deduct the interest on a loan of up to approximately $1 million. It also allows the buyer to build equity or savings in a property through the natural appreciation of real estate.

Renting-A Tenant Prospect’s Considerations
Renting a home is, of course, far simpler than purchasing. Even though a check of your credit is invariably performed, many landlords do not always make rental decisions based on the credit of the applicant. More important, to most landlords, are often performance references from a prior tenancy and/or business/ personal references. Renting also requires a smaller amount of upfront deposit money. No more than three month’s rent (including security) in advance is allowed by law. Rentals also provide a short obligation period with an exit strategy. Most leases are for one year and do not exceed three years.

Renting (Leasing)-A Landlord’s Considerations
With the renting of a home or apartment a landlord must consider a few basic pros and cons with doing such. Renting does offer the pro of maintaining ownership in property while reaping the benefits of a hopefully appreciating real estate market. It also allows a seller that has to relocate for a possible temporary job assignment the flexibility of returning to the residence while also gaining some income to cover the carrying costs in the meantime. The cons to renting include the possible aggravation of damages to the premises by the tenant or the tenant’s lack of performance paying his, her or their rent. Landlord’s can also have a tough time removing a tenant from a residency given the way the Connecticut Landlord Tenant Laws are oriented.

(Note: Before buying or renting a home through a licensed real estate agent, make sure you complete a buyer-tenant agency representation contract, outlining your responsibilities and the responsibilities of the licensed agent.)