Debating whether to rent or buy a home? Here are the top five reasons why renting may be a better option for you.
1. Come and go as you please
The amount of flexibility a renter has is one of the greatest benefits of renting. Once your lease is up, you can get out. This is not to say that renting is commitment-free; however, a six-month or one-year contract is virtually nothing in comparison to a 25-year mortgage.Of course, homeowners can sell their home and move elsewhere, but they’re subject to a market that is always influx and a tumultuous buying and selling process that can take months. Renters can leave quickly and painlessly and this is something that no amount of money in the world can buy – freedom.
2. Trial and error
A home is one of the biggest purchases you’ll ever make, so it’s imperative that you get it right. The beauty of renting is that it allows you to experiment with the following:Location: We’re all aware of the real estate cliche – location, location, location. However, finding a location that suits your lifestyle can be difficult. Renters have the benefit of experimenting with different areas before deciding on one that’s right for them.Dwelling Type: We’re inundated with various property types – condos, detached homes, townhouses, etc. When renting, you can sample different types of homes prior to taking the plunge.
3. Get more bang for your buck
One of the great benefits of renting is that you’re not obligated to pay thousands of dollars on a down payment. Moreover, you won’t have to worry about other additional charges including legal counsel, building inspections and taxes. These costs alone could cover an entire year’s worth of rent.These are just the costs of moving in. Once you’re living in a home there are bound to be maintenance costs for such things as a new roof or home improvements. If you’re thinking of purchasing a condo, there will be monthly condo fees that could increase year over year. All in all, the financial obligations of owning a home are insurmountable in comparison to monthly rent.
4. Responsibility? Leave that to the landlord
Renters naturally have less responsibility as the onus is more so on the landlord. If a roof is leaking, call the landlord. If your toilet stops working, call the landlord. If a pipe bursts, call the landlord. The sporadic costs that are required to uphold a house add up and when you’re a renter, you rarely have to fork out the cash for the repairs.Renters do hold some responsibility; they must maintain reasonable health and cleanliness standards throughout the duration of their lease. However, if the renter is not at fault for the damage, or if it’s considered an emergency repair, whereby the health or safety of the tenant is in danger or the property is at risk, you will not be held responsible.
5. Have a home without the risk
Renting is ultimately a relatively safe option. Homeowners, on the other hand, are faced with an immense risk. Owning a home is an investment strategy. When you purchase a home, you’re tying your investment and your residence together and if one circumstance changes it will likely affect the other. When you rent, your expenses are lower than owning a house and thus you can take the difference and invest it any way you want, accessing the money when you need it.Keep in mind that when you sell a house you don’t always make a huge profit. If you can’t hold onto your home long enough to see a profit, than there is not much of a benefit in paying a mortgage.