While the pros and cons of renting versus buying a home depend on the specifics of each individual’s life and budget. Ultimately, the decision comes down to what is best for your individual situation.
Owning a home comes with its own benefits, allowing the freedom to rebuild and change your property as you see fit. Additionally, the money you invest in owning a home and as the value of real estate strengthens, you eventually build equity over time. Further, mortgage interest and property taxes may be tax-deductible expenses. The benefits of homeownership, however, are not without their cons. Owners are responsible for the cost of ownership, maintenance and repairs. Also, deal with the stressors from real estate market fluctuations, inflation, fluctuating interest rates, appraisal etc. Additionally, selling your home can be lengthy and complicated if you need to move for any reason.
However, renting also has some drawbacks. You don’t build equity in a rental property, and you may be unable to change the property to suit your needs. Additionally, rent prices can increase over time, making it difficult to budget long-term.
In the end, the choice of whether you should rent or buy is entirely up to you, without fear of missing out. And without trying to do what most are doing at that time. If you want to make an investment for the long haul, buying a home could be a wise decision. Nonetheless, renting is the way to go if you require adaptability or are seeking a more economical choice.
Here are 9 reasons why you might choose to live on rent than owning a home:
1. You need more time to settle down:
If you have yet to determine where you want to reside permanently or are ready to make a commitment that will impact your finances for the foreseeable future, renting is an excellent option to consider. Having no obligation to buy, hold or sell a house allows you greater freedom of movement.
2. You need the money for a down payment:
A down payment, which can be quite a sizeable sum of money depending on the circumstances, is typically required before a person can purchase a house. Renting is a more financially responsible choice than buying a home when you don’t have enough money saved up for a down payment. Or even if you are not prepared to tie up a vast sum in a home.
3. You don’t want the responsibility of owning a home:
When you own a home, you take on a great deal of responsibility. It could be a lot to take care of, what with having to deal with maintenance, repairs and keeping the property. Renting is an excellent option over buying a home if you still need time to prepare for the degree of commitment that buying entails. As all you have to care about is paying month-to-month predetermined payments.
4. You don’t want the hassle of selling a home:
If you own a property and find yourself in a situation where you must relocate may be due to a job change, family reasons or other personal or professional reasons. Selling your home will require you to go through the hassle and financial burden of moving and purchasing and selling furniture and other belongings from your home. If you rent, you have the freedom to move anytime the term of your lease expires, regardless of when that may be.
5. You want to live in a specific area:
Renting is an excellent choice if you are interested in residing in a desired or more affluent neighbourhood where buying a home in such an area requires hefty pre-payments. You can avoid the exorbitant costs associated with purchasing a home while still being able to live in the neighbourhood of your choice by renting a place there.
6. You want to avoid property taxes.
If you own a home or other piece of residential real estate, you will be responsible for paying property taxes, which are a form of annual payment. If you are a tenant, you are exempt from such requirements, and the costs associated with them will be your landlord’s obligation.
7. You want someone else to handle the landscaping and maintenance:
Renting is a wonderful choice if you want to avoid the responsibility and ongoing costs associated with keeping a garden or yard. Typically, the landlord is the one who is responsible for the landscaping, allowing you to kick back and enjoy your rented space. Especially during the winter months, when clearing snow from sidewalks and driveways is the homeowner’s responsibility, you are exempt from such obligations as a lessee. In addition, you are not responsible for any fines that may be incurred as a result of the owner’s carelessness.
8. You want to avoid the hassle of dealing with a mortgage:
If you do not wish to be responsible for the financial commitments that come along with homeownership, such as the purchase of a mortgage, the renewal of a mortgage, interest rate fluctuations, etc., renting is an ideal alternative to purchasing a property. When you rent instead of buying a home, you don’t have to be concerned about making the needed monthly mortgage payments or any other expenses associated with financing a purchase.
9. You want to avoid the hassle of finding a buyer when you’re ready to move:
Being a homeowner, if you need to move and sell it before, you will probably be looking at selling it. And in addition to all lawyer and realtor fees associated with selling, you will have to wait to find the right buyer to get you the best deal. If you rent, when you are ready to move, all you need to do is provide notice to your landlord, and you won’t have to worry about finding a buyer for your property. This is because the landlord is responsible for selling the property when you rent.
