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[R209]Rent Or Buy House

by Gerald Mason, Ger

In this article I will try and show you the benefits of both, which should help you to decide.

Renting a home has benefits of its own. For example, if you don't like your location, you can easily move to another one once your lease has ended.

There are also drawbacks to renting that lead many people to buy their own home. When you rent, you are paying to live in a space that will never be yours. Let's consider the aspects of home buying versus renting a home.

Home Buying

The true cost of home buying, is more than the down payment and mortgage. There's also private mortgage insurance (if your down payment was less than 20% of the home price), homeowner's insurance, property taxes, and maintenance. These costs can increase your monthly payment by 40%.

In home buying, each payment you make on your mortgage brings you one step closer to home ownership. As you pay on your mortgage, you increase the equity you have in your home. This equity can be prove to be beneficial if you want to sell your home or use it to borrow money.

It's a pretty well-known fact that mortgage interest payments and some property taxes are tax deductible. For many, this is a very good reason for home buying. Not only are you investing your money in a valuable asset, you get a break from the federal government for doing so.

When home buying, home and property maintenance is your responsibility. You will either have to maintain the home yourself or pay someone to do it. In either case, it is an additional concern that you must take into account.

Renting

Financially speaking, maintenance is not very much a concern. It is the landlord's responsibility to fix the plumbing if something breaks down.

Moving is easier when you rent. Of course, this depends on the amount of belongings you have, but generally speaking, people who rent tend to have less ?stuff? than people who own.

Extra fees are usually non-existent. While some landlords require tenants to have renter's insurance, the premiums are much lower than homeowner's insurance. When you rent, all you have to worry about is the rent and utilities.

You could rent a home for thirty years and, at the end of that time, not have accumulated any equity in the property. When, if you had bought rather than rented, in thirty years, you would have a pretty sizable asset.

Rent increases are inevitable. You can expect to continue to pay higher rent each year. The only thing you can do about a rent increase is move to a property that has a lower rent.

Both home buying and renting a home have their advantages and disadvantages. When you are making a decision about home buying, it is wise to consider both the good and bad of either choice. Ultimately, you have to decide if the benefits of your decision of home buying versus renting outweigh the associated costs, whether it's a matter of finance or convenience.

Digital signage networks are expensive. In fact, the primary reason why most business owners and managers decide not to invest in a system is the price. In other words, it's not the ROI, the functionality, or flexibility that stops them. It's the money they need to spend upfront in order to deploy the system. This is the main challenge that sellers have to overcome, even as prices for the software, hardware, and content continue to decline. A small system can still cost tens of thousands of dollars, which is significant to most budgets.

If you're a business owner and you've been considering whether this kind of investment makes sense for your company, realize that buying isn't your only option. In this article, we'll explore the pros and cons with buying a signage network versus renting one.

Advantages Of Renting

There are a lot of reasons why renting a network can be attractive. First, you won't need to invest as much money upfront as you would if you were to buy. For a small company, that can be a major advantage. The availability of cash flow for daily operations is critical to small businesses. By renting a system, they can preserve this cash flow.

Second, renting allows the business owner to identify features or hardware that are unnecessary. Most rental contracts are flexible enough to allow the operator to get rid of components that aren't needed. Third, when you invest in signage, you're effectively locked into the technology. Because the industry evolves quickly, that technology may become outdated quickly. Renting only locks the operator in for the terms of the rental contract.

Disadvantages Of Renting

Lest I've made the argument above too compelling, renting isn't a perfect solution. It has its potential drawbacks. First, the rental company that provides the signage will be supporting a number of customers. That means their availability will be limited. If you have questions regarding how to do something, or the software or hardware is failing, support may be slow.

Second, even though you'll save money by not having to invest a substantial amount upfront, you won't ever own your system. In effect, the rental fees will be an ongoing expense for your company. Third, the rental company may have bandwidth issues which impact your ability to distribute content across your screens. Lastly, there might be limitations inherent in the network which prevent your using certain types of multimedia.

Leasing: Another Option

An increasing number of companies are now offering leasing contracts. Leasing offers many of the same advantages of renting, including preserving cash flow and allowing the operator to keep up with new technology. However, unless you pay the residual value when your contract expires, you still won't own your signage network.

Deciding To Buy

Buying signage requires careful planning and budgeting. Even small networks that are comprised of less than 100 screens can require a hefty upfront investment. Keep in mind that when they're used properly, they can drive an impressive ROI. But, when your budget is tight, financial resources must be preserved for day-to-day operations. In that case, renting (or leasing) gives you access to the advantages of a digital signage network while allowing you to manage your cash flow.

If your company has the budget to purchase a network, review the ROI that you expect it to deliver. Approach it from a financial perspective. You may find that your signs become one of your most productive investments.

Article Source : La Canada Real Estate

About Author

Both Gerald Mason & Ryan J Bell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Gerald Mason has sinced written about articles on various topics from Dogs, Gardening and Adwords. Find out 3 great (free)tips for investing in real estate here: . Gerald Mason's top article generates over 40500 views. to your Favourites.

Ryan J Bell has sinced written about articles on various topics from Customer Service, Free Credit Report Score and Asthma. Four Winds Interactive is a leading provider of networks and software.. Ryan J Bell's top article generates over 49500 views. to your Favourites.