6 Reasons Why Renting Is Better Than Buying Your Own House

Buying a home has been the lifelong dream of several people globally. It’s one of the few beliefs society generally agrees on. Buying your own home is thought of as being a good investment. While homeownership has its perks, it isn’t for everyone.

The truth is not everyone would buy a house. Buying is good but renting has its advantages too. Rates of owning a house in the U.S are at an all-time high unlike what they used to be with several responsibilities such as maintenance and taxes attached.

Renting on the other hand gives more freedom and flexibility. You get to save money that would have been used to pay taxes and other costs. It’s an easy way to live in a house without the burden of it. Here are some more reasons why you should rent.

  1. Money Isn’t Stuck

Buying a property costs a lot of money. That’s apart from the money put into it for renovations and other levies. If you’re paying install mentally, there’s usually a 20% down payment and settlement fees which includes insurance, transfer tax, and escrow.

If you’re trying to make ends meet, getting a house might not be an entirely good option. You’d have more value for your money if you rent and embrace other investment opportunities. At least there’s a high chance they’d generate a higher return than having money stuck in property and spending more on it.

  1. Little To No Repair Costs or Maintenance Bills

Renting a home rather than buying one means that there would be very minimal or no maintenance costs for you to pay. All you have to do once some appliance stops working or there’s a leaking pipe is to call the landlord or property manager who is obligated to fix it.

Property management companies are like the caretakers of a property — supervising and managing the facility and its surrounding. Let’s say you have a property management company in Arizona (if you stay within the state) as caretakers, they would help ensure issues are fixed as soon as they pop up. Unlike the homeowner, the cost accrued by such issues isn’t on the tenant but settled by the manager/landlord.

  1. Easy Access to Amenities

One benefit of renting rather than buying is having easy access to amenities that would have been a luxury for the homeowner. Amenities like an in-house pool or a standard fitness lounge are available at several middle-scale to upscale apartments with no added cost to the tenants.

If a homeowner wanted to have access to these amenities, it would likely cost thousands of dollars for installation and maintenance. Condo owners would need to pay monthly fees for access to them

  1. No Need for Down Payment

People who want to get a house need a 20% down payment. However, due to its cost, it can take the average income earner more than 10 years to save the required amount for the initial deposit.

In a report by Unison,  the average earner would need close to 12 years to pay the down payment for a property in Ohio. The time frame goes higher for persons interested in living in popular and more expensive cities.

This isn’t the case for renters. While they might need to pay a security deposit for the apartment they want to rent, it’s not as expensive as the down payment for a new house.

  1. Quick Move-in Time

Moving into a rented apartment takes less time than moving into a  new house. There are times where you want to move things quickly — in a few days or weeks.

This isn’t feasible when you’re buying a home due to the process involved. You’d have to look for your preferred apartment, inspect the place, and obtain a mortgage before the closing process. It is time-consuming and stressful.

  1. Less Insurance and Utility Costs

Homeowners typically incur insurance costs via a homeowners insurance policy; for renters, they only have an insurance policy that costs way less than the former.  It covers everything they own in the apartment.

According to a study by the Insurance Information Institute, the average amount spent on insurance for a renter is $180 every year, while for the homeowners it is $1,211 per year.

Also, buying a home means more utility costs for the owner. They’re usually constructed much larger than a rented house; this means they’re more expensive to heat during the winter leading to high electricity bills.

Is owning a home an entirely bad idea? Not at all, it is beneficial to homeowners with regards to equity. If you’re conflicted on which to go for, you need to first outline your needs and priorities. Are you retiring soon? Do you desire flexibility? Does the thought of having to call the repair guy just make you feel uncomfortable?

This and many more factors are what you should consider when pondering on what to do. You should note that there are still several benefits attached to renting an apartment.