October 27, 2021

When Does Renting Make More Sense?

Owning a home is what many people aim to do in their life. However, owning a home may not always be the right choice for you. We’ve listed a few reasons why renting has it’s benefits and why you should highly consider this option.

Short Term

The benefit of renting rather than owning is the simple fact that you will typically sign a one year lease agreement compared to a 10-year or more mortgage. This means that you will only be required to stay in that area for a short amount of time so if having the ability to live in different places is important to you, renting is what you should consider.

Fixed Amounts

With renting you are expected to pay your rent each month. While the landlord does have the ability to change your rent with notice, you can typically expect the same amount month to month.

Lesser Bills

Another upside of renting is you’ll have less bills. When owning a home you have to pay home insurance, property taxes, and so on. Renting eliminates these costs allowing you to place your money elsewhere. For the bills you do have to pay such as utilities, a lower cost is also possible if you are renting an apartment compared to an entire house.

No Down Payment

When you sign a rental agreement, you may be expected to pay for a security deposit and the first and/or last month’s rent. In comparison to a putting a down payment on a home this price tag is significantly reduced when renting.

No Repair Costs

Owning a home comes with a lot of responsibility. One of these being the need to handle your maintenance and repairs on your own or hiring a professional. If you are renting, your landlord will be responsible for fixing any needed repairs and also paying for the costs.

This can be a huge money saver as some repairs such as needing a new roof can be quite pricey.

Amenities

Purchasing a pool, home gym, and other luxuries can require thousands of dollars. Those renting within complexes have these amenities for little to no charge. If you are seeking to live in a community that provides you with a tennis court, pool, golf course, and more opting for a higher-end apartment complex may be worth it.

Should l rent or buy a house?” is a question you may have been asking yourself. These helpful tips should help you determine whether the perks of renting outweigh the perks of being a homeowner.

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