Renting vs. Owning a House: Which One is Better?
Since little kids, we’ve been told that owning a home is the biggest achievement of all. However, this depends on your personal circumstances. Sometimes, you want greater flexibility and less responsibility, or you just can’t commit to this type of debt right now.
Owning a house is more than building equity and frequently, homeowners aren’t financially or professionally ready for this financial obligation. As a result, they can lose their home in the future. Moreover, people think that renting is giving your money away, but this isn’t true since you are providing shelter for your family.
Let’s consider the benefits of renting a house, so you can start wisely planning for the future.
No Down Payment
When buying, homeowners save money for 10 years to meet the 20% down payment requirement. Of course, this depends on the area, therefore sometimes more percentage is needed.
Otherwise, if you rent a house, you’ll pay less upfront and your landlord will ask you for a deposit. This is a security measure and it’s considerably less than a down payment and the closing costs.
When renting a home you don’t have to take care of updating and maintaining the property because your landlord is responsible for all these costly projects. Here are some of them.
Homeowners Association Fees
In some neighborhoods, homeowner’s association fees can be high. The average is between $200 to $300 per month. If you rent a property, associates fees won’t be a financial burden since you aren’t responsible for this.
Renter’s insurance generally costs between $15 and $20 per month and the national average is $187 a year. So, it’s an affordable option compared to the $2,305 per year when owning a house. This average varies in some states and you can pay even more.
Maintenance & Utility Costs
Updating and maintaining a house is essential to preserve or increase its value. Therefore, homeowners perform deep cleanings, painting jobs, outdoor repairs, etc., to make the house look beautiful. These repairs are expensive and time-consuming.
If you rent a house, the owner is responsible for all the fixing. So, if the dishwasher is broken or the shower is leaking, just call your landlord and let them know the situation. They’ll contact a professional to fix the issue as soon as possible.
You Can Live Anywhere
If you’re thinking about moving to another city or country in the near future, relocating is easier when renting. Besides, you can choose between renting short-term or long-term, so you’ll enjoy greater flexibility.
When you’re young, buying a house can tie you down to a location before you’re ready. What if an amazing job opportunity arrives and you can’t move out because of your financial responsibilities? This won’t happen while renting. Explore the world first and then, decide where to live.
Depending on the world economy and the market’s condition, your property might gain and lose value all the time. This is a major concern for homeowners as it’s not about the house itself, but external factors they cannot control. For example, school districts have a big impact on the home’s value.
The good news is that it doesn’t affect tenants. You already signed a contract that specifies your monthly rent payment. Therefore, you and your landlord agreed to those terms and conditions, and they won’t change regardless of the market’s condition.
You Can Control Your Neighbors
Neighbors can be a deal-breaker when renting a home and you can choose to leave and rent somewhere else. However, when buying a home you’re making a long-term commitment to your neighborhood and you don’t know what to expect.
Moreover, neighborhoods change over time, and perhaps, it was a good fit for you and your family before, but now it’s deteriorating. You have noticed more foot traffic, less parking space, or too much noise. When owning a house, you have to find a way to deal with this depreciating property, but if you rent you’ll have the opportunity to leave once the lease expires.
Paying Rent Isn’t a Waste of Money
Ignore people who tell you that renting is a waste of money. They don’t understand that the decision of renting or owning depends on personal circumstances and desires. Besides, not only money is important, but your comfort and life’s vision.
So, If you’re struggling with your house and want to enjoy the benefits of renting, contact Colorado Cash for Keys. We buy houses in Colorado Springs and make all-cash offers.