Why Renting May be Better than Buying your Next Home
A lot of the advice out there strongly advises against renting your home. However, buying may not be a smart, realistic option for every person’s situation.
In today’s housing market, buying a house comes with fast-rising prices and high mortgage rates, making it cheaper to rent a home. Renting can also prove less stressful when it comes to maintenance, amenities, safety, and financial savings. There are many reasons why renting may be a better option for you, depending on where you are in life.
This article is for those just starting out, maybe fresh out of college or in the first couple years of their profession, and for those on the fence deciding to purchase their first home.
One great thing about being a tenant, rather than a landlord, is handling routine maintenance that pops up.
When the refrigerator stops working or the roof starts leaking, the responsibility does not fall on the tenant, generally speaking. This does not mean all maintenance is covered by the landlord or property management group, but rather it means the cost ends up being lower in most cases.
Without this weight on your shoulders, you’ll be able to save money and use it in ways that best fit your needs. Whether that is paying off student loans or making a car payment, having the ability to save money on maintenance can add up and go a long way.
The biggest perk to renting, especially apartments, is the amenities that often come with the home. A lot of apartment complexes provide tenants access to pools, gyms, laundry facilities and somewhere to grab a quick drink/snack within walking distance.
Having these things built into a home as a homeowner would be extremely costly. Some apartment complexes provide private parking and security, which is perfect for those who live in major cities. This provides a sense of safety that can not be found when owning a home, in a lot of cases.
Generally speaking, apartment complexes are the safest option for single mothers, families and the elderly.
The reason being, most complexes invest money into safety measures for their tenants. This can include security systems, 24/7 security guards, gated communities and more.
Even the close proximity of each neighbor can increase your chances of having someone there in a time of need. If you are a homeowner or even renting a house, being the only one around at any given time is far less safe than having neighbors/staff in every direction.
As mentioned before, renting is generally cheaper than a mortgage. All homeowners run the risk of losing money with decreases in home equity, which can be a domino effect for financial issues down the road. Being a tenant, the only money being lost each month is the fixed amount agreed on for rent.
Many people searching for their first home get blind-sided by extra expenses they may not know about. Homeowner’s insurance is one of them, which can be costly.
The biggest expense standing between a lot of people and their next home is the down payment that is needed in order to qualify to purchase a home.
For those who have recently graduated college, a down payment may be as much as a year’s tuition or even the deciding factor between a new home or a new car.
The difference in a down payment for renters being much less as most are only required to pay first and last month’s rent, as well as a security deposit that will potentially be repaid back to you.
Is Renting a Home Right for You?
As you may have concluded by now, renting is the better option for those who are just starting out their professional careers, especially through an apartment complex.
Paying rent, while utilizing all of the perks and amenities that come with a single payment each month, is not only cost effective but can also save you from future financial issues down the road.
July 3, 2019