There are a lot of talks about the benefits of owning a home, but not much is talked about renting one. A lot of young people are struggling with the decision. They are unsure whether they should be renting or owning a home, and to be fair it is an understandable problem to have. Both of these choices have their advantages and disadvantages, and the factors I’m writing in this article are something you should keep in your mind if you are having this choice.
Both renting and especially buying are big financial commitments, but in different ways and also in different degrees. So when you should consider renting? I’m listing the 9 benefits for renting a house vs owning a home you should always consider should you be making your move.
It’s Way Less Expensive Up Front
Non-refundable application fees, security deposits, last month’s rent at signing are just some of the financial hurdles renting has. But all of them together, do not even compare to closing costs and the steep requirement of a down payment. And even though your monthly rent rate might be a bit higher than a monthly mortgage cost, you do not have to be concerned about fronting for things such as taxes or home repairs.
It’s Not So Risky
Buying a home should be considered as an investment, and investments do carry risk. When you rent a house, you do not need to worry about the market crashing or that a costly and unexpected home repair on your house will cost you a lot of money from your savings accounts. Whether you’ll be happy with the place you rent is the biggest risk you take on when renting. And that’s a risk most of us can afford to take.
You Have More Flexibility
The freedom that it provides you is definitely one of the biggest benefits of renting against owning. When you want to pack and move across the country it is harder to sell a house than to break a lease. It is a lot quicker too. Renting sets some defined terms that you can base a big living decision around, even if you don’t cut out early.
Repairs are Someone Else’s Problem
Broken dishwasher? Running toilet? Warped window trim? These repairs, when you rent, costs and other accompanying costs are the responsibility of your landlord or management company, and not you. But of course depending on your terms of lease, you may have to contribute to some of the repairs of your living space, and there are some hidden charges when you buy a home.
No Property Taxes at all
One thing that makes a major expense on homeownership is property taxes…which affects the buyer’s price range. But in terms of paying the property taxes on your part, when you are renting the space you have no obligation, unlike owning the property that you should pay. In some states the property taxes are high, and that can be a huge burden off your back— and that means a lot more money in your wallet every year.
You Know What You’re Paying Each Month
We all know that the benefits of renting a home are mainly financial – that is no surprise.
Homeownership is a variable cost endeavor. That depends on the terms of a contract, interest prices may change over time — going up or down without the input of the owner. The same goes for property taxes, which almost always fluctuates. When you rent, you have to leave aside a monthly amount for the entire term of your lease so that is the only ‘variable cost’ you have to worry about.
Some Utilities May Be Included
When renting, you may end up with free internet, water, or heat – most owners cover these specific utility costs for their residents. But, for those utilities that aren’t included with the rent, they’re normally a lot cheaper than when you buy them since many rentals have less square footage than family homes.
Don’t pay attention to the details
Things like chipping paint and yellowing grass aren’t the end of the world…but they do require a lot of time and effort to deal with. You do not need to think twice about the things that make homeownership a big day to day responsibility, actually, often you will not even notice. So if you enjoy spending your weekends hanging out with friends instead of clearing leaves out the drain, then renting might be one of the best options you have chosen so far.
There Is No Pressure to Upgrade
When you choose to rent a space, you should keep in mind that it’s not that easy to be satisfied with an old kitchen or badly designed bathroom. Homeowners are in it for a long time, however, the upgrades aren’t just part of the experience, they’re also usually expected if you want to make a good return when you want to sell.
As a renter, you can be happy with the fact that what you’ve got is not going to stay forever. Ultimately, the decision of renting versus buying comes down to what you can afford and how much responsibility you want to have when it comes to your home. There’s nothing wrong with the flexibility that comes with renting, neither is there anything wrong with going all in and buying a home. Just be sure to make the right decision for you and your finances, and you should be happy with wherever you end up.