Is Renting Right For You
When the prices for buying a home go up, the popularity of renting also goes up. There are some very practical reasons for renting a home instead of buying one, especially when it is a "seller's market" for residential properties. But before you sign an extended lease to rent a home, you should consider the pros and cons of renting versus buying.
Why Renting Is A Good Idea
The most obvious reason people rent is because it is easier and cheaper to get into a rental than it is to buy a house. The down payment for a home could be tens of thousands of dollars, while first month's rent and a deposit on a home would be considerably less.
Being responsible for monthly rent payments might not always be cheaper than buying, but there are very few long-term financial effects if you miss a rent payment. If you miss a mortgage payment, your credit could be ruined for years.
When you rent, any maintenance and repairs the home may need are generally the responsibility of the landlord. Some tenants make arrangements with their landlords to get a reduction in rent to do basic maintenance such as mowing the lawn or shoveling the walk, but that is done on a case-by-case basis. The money a tenant saves on not having to repair a damaged roof or leaky water pipe can be considerable.
A rental is usually done through a lease that runs one or two years. When the lease is up, the tenant has the option of renewing (if the landlord wants to renew) or moving on to a new property. If you know you will not be living in an area for very long, then renting can be ideal.
Why People Buy Homes
As convenient as renting can be and as much money as a person can save renting versus buying, there are still plenty of people who buy homes.
One of the big reasons people buy homes is to build up equity that can be used to pay for a child's college education or some other large expense. It can take years to build up significant equity, but many homeowners feel it is worth it.
Homeowners are free to remodel their property any way they wish so long as it does not violate zoning laws or building codes. For many people, this ability to customize their home is important and it cannot be done with a rental.
The idea of owning a home is something many people strive for throughout their lives. That feeling of ownership is not something everyone wants to achieve, but it is a lifelong goal for many people around the country.
Renting Is A Personal Decision
When you own a home and the plumbing springs a leak or the roof starts to collapse, you have to come up with the cash to fix it. When you rent, the only financial obligation you have is to pay rent and that entitles you to expect the home to be fixed immediately.
The flexibility renting offers is not only something that people enjoy, but some people have a lifestyle that requires the ability to live someplace where they have no maintenance or repair responsibilities and they can leave after a year or two. If your job keeps you moving every few years, then renting makes a lot of sense both for convenience and as a financial decision.
In the end, the choice to rent is usually a personal decision. With renting, you can live in a beautiful home with almost no sense of responsibility.That is what many people consider to be the real American dream.