Ready to Sign that Lease Agreement?

By Adam Smith

The real estate market is booming across the United States, especially in select areas of California as well as Las Vegas. Even the sleepy town of Boise, Idaho is experiencing record breaking primary residential development. Where ever you happen to live, you have probably noticed it's not so easy to get into that coveted house you have always dreamed of, despite the favorable mortgage rates. So what should you do?

Lessons Learned from the Past

With such uncertainty around the real estate market, perhaps it is best to stay away from owning your own property. Many so called experts predict the housing market in the US has finally reach bubble status, and expect that bubble to burst in the near future. They may have submitted their predictions a bit early, but their advice should be considered. If we learned anything from the stock market bubble and subsequent crash of 2000, we realized frequently a conservative approach to investing serves us well when uncertainty surrounds the market.

Protect yourself and consider the advantages of renting or leasing versus buying your own home. A renter assumes far less risk by signing his/her name to a lease agreement than when closing on a house. Typically a rental agreement locks you into a contract for a short period of time, relatively speaking, during which the rental rate is locked as well. Such a contract can protect you from the downswings of the real estate market, especially the volatility frequently demonstrated by adjustable rate mortgages. Granted, as a renter you don't stand to gain any equity in the house should the market turn up. However, you also don't expose yourself to the violent downswings in housing values wrought by an oversaturated market. Should you buy a house now and a year later need to move to pursue a new job opportunity, what happens when your realize those inflated prices you paid for your house are not so inflated anymore, and suddenly you owe more on your house than it is worth? That is called negative equity, and instinctively you realize no good can come of such a situation. Hence renting offers flexibility, both financially and physically speaking.

Avoiding the Headaches of Ownership

By agreeing only to rent the dwelling, you manage to avoid many of the disadvantages associated with owning a house. Normally the landlord is responsible for general maintenance of the flat. Many home owners are quick to offer their stories of frustration, disappointment, and even anger when things go wrong in the house. Pipes burst, flooding occurs, air conditioning units break during the scorching summer days of July, and heating systems fail in the dead of winter. All these things can and will happen, setting homeowners back considerably. Thus, as a renter you can avoid many of the major financial investments owners must make to maintain the comfort and livability provided by a dwelling. Agreeing to a lease agreement helps mitigate the risks of living in a home or apartment.

Weighing your Options

A rental or lease agreement can offer many advantages to those of you looking for a place to live. Ultimately, each individual must decide what is right for them. Some are more than willing to bear the risk inherent to the housing market because they have a strong positive cash flow and are in a position to endure the twists and turns of the market.

Don't be afraid to weigh your options and consider the risks of owning versus renting. For many, playing the game conservatively and waiting for housing prices to come back down to Earth will prove to be a successful strategy. There is no shame in signing that lease agreement, living in an apartment for a year or two before moving on to that house you have wanted so badly.

Adam Smith is a client account specialist with [http://www.10xmarketing.com] - More Visitors. More Buyers. More Revenue. For more information about lease agreements, including real estate advice and strategies, please visit [http://www.oneminutemillionaire.com/affiliate/glossary/lease-agreement.asp]

Article Source: http://EzineArticles.com/expert/Adam_Smith/13259
http://EzineArticles.com/?Ready-to-Sign-that-Lease-Agreement?&id=69040

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Leasing Information:

Related Articles

What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?
Recently there was an article in the Houston Business Journal of the anchor store in many shopping centers through out Houston pulling out. Kmart, took out some stores, so did three other big box stores and a few consumer electronics places and larger furniture stores, now Albertson's has left.
Warning - This Lease Might Explode Any Minute
Mike Caringi, owner of a small New Jersey business that sells pumps, found himself facing a gut-wrenching dilemma last summer. Should he continue paying $ 1,500 each month for essential telecommunications services he no longer receives and for leased equipment he claims was never installed? Or, should he stop making payments and face a potential lawsuit from the firm that financed the equipment under a 'hell or high water' lease? Mr.
Equipment Leasing Blunders That Can Cost Your Firm a Mint
Rod McHenry, the financial vice president of a document imaging company, thought he had great cause for celebrating. He had signed an unbelievable $370,000 lease proposal covering computer servers, workstations, software and other networking equipment.
Ten Ways to Save a Bundle on Your Next Lease
According to the Equipment Leasing Association ("ELA"), U.S.
How Venture Leasing Added Millions To A Startups Equity Value
Craig Berman beamed noticeably after completing his board presentation. Berman, CEO of a startup that develops nanotechnology applications for the defense industry, had just closed a $ 20 million equity round.
Venture Leasing: Startup Financing On the Rise
According to Pricewaterhouse Coopers, investment by institutional venture capitalists in startups grew from less than $3.0 billion at the beginning of the 1990's to over $106 billion in 2000.
True Tenant Tales, Volume One
Working with tenants can be an amazing experience. (Owners and contractors are equally astounding, but those are subjects for another day.
Lease Contracts - The Meaning of Joint and Several
When you see the phrase "joint and several" in alegal document or contract it means that that the partieson one side of the agreement are responsible individuallyand collectively for the terms of the agreement.Example: In the case of two tenants signing a lease agreement,"joint" means they are jointly responsible for the rent.
Insiders Guide to Snaring the Best Lease Deal
Every year, thousands of business owners and financial managers are faced with the task of obtaining attractive financing for equipment their firms want to acquire. Snaring the best leasing arrangement requires only a bit of planning and a smidgeon of finesse.
Interim Rent: Equipment Leasing's Trap Door
Many lessees enter into lease transactions that they believe are competitive based on faulty rate assumptions. Most lease rate calculations don't take interim rent into consideration.
Increase Your Business Growth and Cash Flow Through Equipment Leasing
"If it can be manufactured, it can be leased." For the past decade or so, this statement has become more and more true to fact.
Smart Car Leasing for Beginners
Car leasing is extremely popular because it provides an attractive method of driving an automobile that you might not otherwise afford. It allows you to make lower monthly payments than with traditional car purchase loans.
The Leverage of the Lease
In today's rapidly changing business environment it makes sense to consider all the options before paying for your business equipment - whether it's a photocopier, computer system, computer hardware or software, telephone system, security equipment, office furniture or anything else. Many business people will give great consideration to the actual purchase, getting quotes from different suppliers and considering different choices.
How Car Leasing Works
Car leasing is nothing different to paying for the usage of a truck, a van, or any vehicle in that matter, within a specific duration of time. Most people may think that it is similar to car rentals, but it has one major difference.
Getting Your Venture Lease Approved
Each year venture capitalists fund more than 2,500 start-up companies in the U.S.
What to Consider Before Leasing a Car
Some people choose to lease a car rather than buying one outright. Here are some useful tips on what to consider before leasing a car:The most important thing to remember is that you do not own the vehicle.
Explore An Effective Revolutionary Approach To Traditional Business Financing
For business owners who need working capital now there is a revolutionary, tax-deductible cash flow solution that frees up capital and gives them the money they need to grow. This diversified cash flow solutions is known as "asset leasing.
Terms to Know Before Leasing A Vehicle - Leasing Jargon Simplified
So, you've decided that you want to lease that next vehicle. Can't really blame you.
Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions
The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital.
Using Equipment Leasing as a Competitive Weapon
Most great generals know how to design winning battle plans. They also know how to use their resources to gain advantages over the enemy.