Homeownership is an ultimate goal set by many. Both renting and buying has financial advantages. However renting does have an edge especially when the economy is unstable and poor.
There are great financial benefits to renting as opposed to buying a house. Check out eight reasons why renters can have the better financial deal than homeowners.
- Renting a property, means that your landlord is responsible for all maintenance and repair costs. Unless you are directly responsible for the repairs that have to be done.
- Renters have the better financial deal upon signing as a house with a mortgage requires a sizable down payment. The deposit for renting a property is much lower compared to buying a property.
- Most Rent amounts are certain for the span of the lease agreement, if it’s a fixed-term contract. This makes it easier to budget your money as you know how much you are meant to pay.
- Property values go up and down over the years. The property value of where you stay depends on the area you live. This affects homeowners in a big way. It affects renters to a much lesser because they can move out to a cheaper place anytime.
- By renting you can save more than a homeowner. Homeowners that have debts can have trouble saving if they cannot properly manage their budgets. Renting is mortgage-free.
- When you purchase a house you are tied down to living in that location for at least a few years. Whereas if you are renting a property you are flexible to move.
- You can also share your rental space if it can accommodate more people. Housemates are useful because you can split the bills and end up having best friendships.
- Rental properties usually have a more compact floor plan that is set. Therefore renters can often expect to face lower utility costs.
The choice between renting and buying is a big decision to make. Before making a hasty move, review the details and make the financial decision that is the best for you and your family.
Kelly Philiphs who is happy with renting states, “There are so many considerations when deciding whether to buy a home. It’s not the ‘ideal’ scenario for all families.
Don’t be fooled by promises of tax savings that is not always the case.
A home is a huge investment so be sure to research what it might mean for you before taking the leap and don’t be afraid to say no. I did.
As I sit on my rented porch, staring out at my rented view while my kids happily play inside a house that they’ve already made their home, I don’t regret my decision one bit.”