Renting is the perfect option for anyone who’s allergic to the idea of settling down in one place or who’s just not quite ready financially to take the home-ownership plunge.
If you’ve been wondering whether or not you should rent instead of own, here are five good reasons why renting might be the way to go:
- 1 No long-term commitment. No long-term commitment. If you’re the restless type who doesn’t like to stay in one place for too long, renting is ideal for you. When you feel the urge to pick up and move on, all you have to do is give your landlord notice (usually about 60 days). If you own your place and you want to make a move, you have to go through the whole process of getting your place sale-ready, putting it on the market and waiting for it to sell.
- 2 Renting is more affordable. Renting is more affordable. Homeowners might argue that renting is just throwing away money, that the rent you pay each month is the same as some monthly mortgage payments. While that may be true, you also have to consider added costs associated with buying like the initial down payment (5-20%), realtor fees, closing costs, property/land transfer taxes and utilities.
- 3 No maintenance or repair bills. No maintenance or repair bills. Speaking of additional costs… if you own your own place, you’re responsible for any maintenance and repair costs. Fixing a leaky roof, a burst pipe or replacing a faulty appliance can be pretty pricy. As a renter, the responsibility covering those costs is on your landlord.
- 4 Your insurance costs will be lower. Your insurance costs will be lower. As a renter, you don’t have to worry about insuring the actual building you’re living in – your landlord’s insurance will cover that. You’re responsible for making sure your contents are covered and that you’ll be able to pay for any living expenses if you’re forced to vacate your place while repairs are being made. A
tenant insurancepolicy is pretty affordable, only about $15-$20 a month on average.
- 5 No financial risks. No financial risks. When you buy a house, you’re taking a bit of a gamble on the market. You hope that you bought at the right price and that your property value will increase over time. Renting doesn’t come with that risk.
At the end of the day, there’s really no right or wrong answer to the rent vs. buy debate. It really comes down to your personal preference.
Whether you rent or own, you need insurance.