The Benefits of Renting
Although it is the right time to buy with interest rates as low as they are, buying a home can be a daunting experience that requires careful evaluation of your current priorities and financial objectives. In addition, buying comes with a lot of responsibility that should not be taken lightly.
If you don’t think you are ready to purchase a home, don’t feel pressured because renting is a viable option with many benefits
Low Maintenance Expense
The everyday wear and tear on a home can lead to repair bills that can cost an arm and a leg to fix. As a renter you have the security in knowing that pretty much anything that breaks falls on the landlord, and the repairs need to be done in a timely manner.
Buying a home is a financial investment that when the housing market is high it can be sold with a financial windfall. But in turn, when the market fails the home may be worth less than the purchase price and thus sold at a loss. As a renter you have nothing invested so market fluctuations fall on the landlord and not on you.
Buying a home can require a large cash outlay. Thus a large sum of your money is tied up in a property that you would have to sell to get back. Renters can be financially liquid because they are not invested in a home. Any money they have before they rent can be used as savings to protect against financial downturns. Also, it is relatively easy for renters to adjust their expenses should their finances change since they are only beholden to the terms of a lease.
Home owners are at the mercy of their homes’ next repair job. They live in constant fearful of roof leaks, structural cracks and the next appliance that may break. A Renter does not have to worry about that because their housing expenses are fixed and thus predictable.What they paid last month for housing is what they will pay this month regardless of whether the stove breaks.
Low Move In Cost
The best benefit of renting a home is low upfront cost. In fact, many communities that you rent from only require first month’s rent and wave security deposits for individuals with good credit. In contrast, buying a home can require a substantial earnest money deposit not to mention proration of real estate taxes, stamp taxes, HOA fees, insurance, interest and many other closing cost. A good realtor can do things to mitigate some of these fees but more than likely you will spend more upfront to buy than you would to rent.
Flexibility in Location
Renting allows you the flexibility to move if you find a location that better suits you. That is why renting is ideal for home buyers moving into a new state or city. Renting will give you a chance to learn your environment and find a community that fits your needs before you invest. Or it give you the opportunity to explore new places and travel without the responsibility that a home brings.