A big part of the “American Dream” is owning a house. However, while both renting and buying have their advantages, owning a home is simply not right for every lifestyle. As a renter, you have more time to save money, do research, and plan accordingly for when you are ready to take that next step. Here are a few reasons why renting makes more financial sense than buying a home.
Flexibility
There is a lot more freedom in renting than buying a home. If your job changes, you get married or divorced, or you simply find you don’t like the city you’re living in, trying to sell a home can be a huge hassle. When you’re renting, you simply give a one-month’s notice to your landlord and move whenever you need to.
Maintenance and Repairs
When you rent a property, your landlord is responsible for all maintenance and repairs. If an appliance stops working or there’s a leak in your roof, you simply call your landlord and they’ll take care of it for you. When you own a house, all of these repairs fall onto your shoulders. Depending on the type of repair, these can be very costly.
Access to Amenities
When renting, many apartment complexes come with great amenities such as gyms, pools, and hot tubs. If a homeowner decided to try to match these amenities, it would cost thousands of dollars for installation and maintenance. Even condo-owners have to pay monthly fees for these amenities, where as many times renters have access at no extra cost.
Fees on top of Fees
Buying and owning a home is a costly endeavor. Just to get started you need a large amount of money to cover the down payment, closing costs, fees, insurance, and deposits. Then, once you become a homeowner, you’ll have mortgage, homeowners insurance, and property taxes every month. This doesn’t even include maintenance, utilities, repairs, and any other costs that may come up. Renting is a fixed, monthly cost with no surprises and only a security deposit to start.
Less Risk
You really don’t lose a lot when you rent. You may lose your security deposit if you’re not careful about taking care of the property, but that’s about it. In the end, you can finish your lease and walk away to a new life without any worry. When trying to sell a house, there’s a lot more worry involved with decreasing property value and trying to sell for what your home is worth.
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