6 Convincing Reasons Why It's Better to Rent Than Buy a Home
Paying monthly dues is less stressful compared to managing real estate taxes
After starting a family, the next step for a couple involves finding the perfect home. Some choose to invest in a house and lot, others buy a furnished home, and there are those who’d rent an apartment or a condo unit instead. While many save up for and invest in a home they can proudly call their own, many opt to rent first, considering the move as a smarter and more practical decision.
Whether you’re currently renting a home or you’re still undecided, here are six reasons why renting might be the best option:
Your monthly home expenses are predictable
Since your monthly rent is fixed, a portion of your salary instantly goes to that expense. Some rental properties include utility payments, but even if your rented property does not cover electricity and water usage, sources say that these bills tend to fall within the same bracket every month. According to Investopedia, “a renter’s monthly expenses tend to be very predictable… renters generally don’t have the unexpected expenses associated with owning a home, such as fixing a leaky roof or replacing the windows.”
It’s easier to maintain
Depending on the rules set by your landlord, your options when it comes to improving or decorating the home is limited. While you can still make it your own through simple décor and budget-friendly updates, overall maintenance is shouldered by the landlord or property owner.
According to an article published by Real Living, “it’s his job to keep the property safe and fit to live in. (This includes pest control.) If the landlord refuses to make repairs, you may suspend paying rent until repairs are made or make immediate repairs charged to the landlord.” It’s best to review your contract of lease or rent before signing it as the document should include the types of repairs and who pays for it. To cut it short, no unexpected expenses for repairs!
You can move anytime you want
Various sources state career flexibility as advantage renters enjoy. This only means that you can move from one city to another quickly, depending on your needs or the location of your workplace. Don’t fancy the neighborhood you’re in? You can look for a safer and better community and rent a home there. According to the full-service rental platform, Zumper, “if you’re planning on moving around, not sure if the city or town is the right fit, or simply want to be able to up and move on a whim, renting is the option for you.”
You’re free to make other investments
Since you’re not paying the mortgage and additional fees related to owning a home, you’ll have funds that can be allocated for other investments like your child’s education, starting your own business, or let’s be honest, buying your dream home in the future. This is what Zumper explains as spreading your funds out “over different types of investments instead of tieing all of your money up in one single purchase.”
You don’t have to think about paying taxes
Aside from mortgage, owning a home means being on top of paying real property tax or amelyar regularly. If you’re only renting, the property owner must pay it, and some of them factor this into the monthly rent. Nevertheless, it’s an item off your list that you don’t need to worry about.
You don’t have to worry about the value of the property
According to Investopedia, buying a home can be likened to investing in the stock market. “The money that’s invested in the home – through down payments and mortgage payments – is at risk.” The value of the home could appreciate, which is good for the homeowner, but at the same time, it could also depreciate which results in “underwater mortgage, where money is owed than the current value of the home.”
This story originally appeared on Smartparenting.com.ph.
* Minor edits have been made by the Realliving.com.ph editors.
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