To Own or Rent: Combining the Best of Both Worlds! - Part 1
Is it possible to combine the benefits of owning a home with the benefits of renting?
At first glance most people would say no because these things seem to be at opposite ends of the spectrum. Personally I'm not convinced; and whoever comes up with a working model (not even the best model) and implements it correctly WILL be remembered as a trend setter in modern real estate.
This could change everything.
First off, what are the benefits of owning?
1. The perceived benefit of your primary residence being an incredible investment. This is an area of real estate where most people are believing and repeating a lie. Of course you CAN make a significant return off your primary home, but this is anything but a given. Sadly, in 2008 millions of Americans learned this in a jolting, financially crippling way. However, I don't want to totally discount this aspect of real estate ownership.
The model of the future will incorporate predictable and steady returns the way people currently hope things will work out.
2. Customizability. I want to make my home special and unique just the way I want it. However, most people don't really know what they want which is why we hire decorators and interior designers to educate us.
The model of the future will also incorporate the ability to customize your dwelling within reasonable parameters that offer guidance and help you make a decision that is best for your lifestyle.
There are obviously additional benefits of home ownership, but for the sake of my argument I'm going to stop with the above two which I think are the most important.
What are the benefits of renting?
1. Little to no financial risk. Because people do realize that real estate returns aren't always guaranteed, renting provides a hedge of protection against buying at the top of the market and selling at the bottom. Your landlord shoulders that risk.
2. Ease of use and upkeep. For many, maintaining your home isn't what we look forward to doing on our weekends. Not having to worry about the time or financial burden of maintenance is a HUGE benefit of renting a property.
3. Ease of movement. When you rent a property the only thing that ties you there is the length of your lease. If you hate it you can leave with very little financial risk or annoyance.
So how do you combine the benefits of both renting & buying? I have a model that I think would work and I'll post it tomorrow!
What do you think though? Would being able to enjoy many of the benefits of both models be a real estate game changer?