Reasons Why Renting Is Better Than Buying a Home

The most common goal of a certain individual is to own a home. Thus, it is considered as a lifelong goal of most people but that doesn’t mean it’s for everyone.

Renting a home can be an ideal option for those wanting extra flexibility and less responsibility. While buying a home can involve some serious saving and commitment, renting can help you maintain your flexibility and lifestyle. Hence renting might make more sense in terms of financial circumstances. Below, are the advantages of renting instead of buying a home.

No Repair Bills or Maintenance Cost

This means that when you rent a property, your landlord assumes full responsibility for all maintenance, improvement, and repairs. If an appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it. Therefore, you’ll be free from using your money for these kind of responsibilities.

Homeowners, on the other hand, are responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task, it can get quite pricey.

There’s no property tax to worry about

One of the major benefits of renting versus owning is that renters don’t have to pay property taxes. Real estate taxes can be a hefty burden for homeowners and vary by country. In some areas, the costs associated with property taxes can amount to thousands of dollars each year.

Access to Amenities

Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness center come standard at many midscale to upscale apartment complexes with no additional charge to tenants.

If a homeowner wanted to have access to these amenities, they would likely have to spend thousands of dollars for installation and maintenance.

No Down Payment Needed

Renters generally have to pay a security deposit that is equal to one month’s rent. And that’s usually all. This deposit is theoretically returned to them when they move out, provided they haven’t damaged the rental property.

When purchasing a home with a mortgage, you’re required to have a sizable down payment—typically around 20% of the property’s value. Of course, that down payment results in having equity in the home, which only increases as the mortgage is gradually paid off.

You’re not tied to it long-term

If you’re not planning on staying in the same city for years, renting a house is the ideal way to go, as there are far fewer commitments.

When you buy a home, you should expect to live there for at least five years. Ideally, five years is enough time for housing prices to rise, and for you to sell the home and cover the costs of buying it initially.

You’re not stuck with any losses

Property values go up and down. While this may affect homeowners in a big way, it affects renters substantially less, if at all. Your home value can impact the amount of property taxes you pay and the amount of your mortgage. In a rocky housing market, renters may not be as adversely affected as homeowners.

Lower Utility Costs

Although homes can vary in size, they are typically larger than rental apartments. As a result, they are costly to heat and also can have higher electric bills. Rental properties typically have a more compact and efficient floor plan, making them more affordable to heat and power than many houses.

Lower Insurance Costs

While homeowners need to maintain a homeowners insurance policy, the equivalent for renters is a renter’s insurance policy. This kind of policy is much cheaper and covers nearly everything owned, including furniture, computers, and valuables.

Renting gives you a home without any of the burdens of homeownership. It’s the easiest way to live in a house without the hassle.

Once you decided to rent, you should consider getting Renter’s Insurance. To know more about this kind of insurance, contact or email ONYX Insurance Brokers now!