URBAN HOUSING: COMPARING OWNING TO RENTING A HOUSE скачать в хорошем качестве

URBAN HOUSING: COMPARING OWNING TO RENTING A HOUSE

Housing Consumption can be by way of owning, thus becoming a homeowner or renting thus becoming a tenant. Owner occupation is favoured by policy makers. Its advantages include building equity in the house, no monthly rent payment, the owner can spruce the house to suit his needs, the house can be used as collateral and it can be bequeathed to heirs. Ownership also offers stability and social status. Some authorities offer tax benefits. An owner can benefit from positive externalities affecting the neighborhood, or within the nation But a house owner has to meet maintenance and repair costs; and ownership costs such as land rent, property tax and homeowners insurance. The owner has to meet utility costs and other requirements such as fumigation or flood control. Ownership lacks flexibility if you want to move or change the budget or the size of your accommodation. An owner may be faced with unexpected costs such as a leaking roof, and there is always things to about the house which take time and money. The property is illiquid and transferring it is costly. The cost of acquiring a house, through servicing a mortgage or construction is quite high. It may well be that if you put this amount into alternative investment, the financials may work out that you are better off renting. At a macro level, owner occupation encourages the immobility of labor. Renting has the advantage of having a low cost of entry, offers flexibility of moving, accommodation and budget, does not entail maintenance, repair and other ownership costs; and the cost of renting is predictable. The disadvantages of renting include: Tenant not building equity in the property making it look like money thrown away monthly. May be required to move involuntarily, following a decision by the owner (sale, change of use) Rents may go up beyond what tenant can afford. A tenant may not be free to alter property to suit your tastes; cannot use property for financial leverage eg collateral; Cannot bequeath and they may face nosy, troublesome, or discriminative, landlords. In the cities of developing countries, the majority of households are tenants many times in low quality housing and neighborhoods. The proportion of tenants in Nairobi is 91%; Kampala, 71% and Dar es Salaam 57%. Housing policies should reflect the prevalence of renting and adopt positive policies to wards this important segment especially for low income housing. These could include tax and access to land incentives, neighborhood upgrading; encouraging rapport between landlords and tenants; and realizing that landlords are not exploiters and may be as poor as their tenants, rent being their sole income. Rent control should be avoided altogether. Resources such as the UNHABITAT "A Policy Guide to Rental Housing in developing countries" exist and could be of great assistance to policy makers