Stop Paying Your Mortgage, Start Renting During Difficult Times
When special circumstances happen, such as COVID-19, you might find yourself in a financially vulnerable situation. According to the Joint Center for Housing Studies, millions of homeowners across the United States are having issues with their mortgage payments. So, don’t feel ashamed, you’re not the only one that’s experiencing the economic downturn’s negative effects.
If you already tried to make a financial agreement with your mortgage lender to temporarily reduce or suspend your monthly payments and it was rejected, or if the period has ended and you’re still unable to assume your financial obligations, you should start thinking about other options.
Sometimes there just isn’t enough time to get back to normal. For this reason, many have chosen to stop paying the mortgage by selling their house and start renting. So, let’s explore the benefits of this strategy.
- No Property Taxes
Since you already own a house, you know the financial burden that real estate taxes represent. Depending on your State, taxes can cost you thousands of dollars annually and the more a house is valued, the more taxes to pay. This won’t be an obligation when renting and you’ll save a lot of money.
- Flexibility on Where to Live
Renting gives you the flexibility to decide whether to rent short-term or long-term, and you won’t be restricted to one area. You’ll have the freedom to choose where to live; a new county, city, or even a state.
What if a job opportunity across the country arrives and you cannot leave because of your financial responsibilities? This won’t happen while renting, you’ll be able to just pack your things and go. Believe us, it’s much easier to live without the responsibility of owning a house
- Property Value Isn’t a Problem Anymore
Depending on the market conditions and the area where your property is located, the value might go up and down, considerably affecting your wallet. Your home value’s increase or decrease directly affects the amount of property taxes you pay, your mortgage, and so on.
Renters don’t have to worry about property growth value and any of these payments, because your landlord it’s the one in charge of paying the mortgage.
- Lower Costs For You
Overall, updating and maintaining your home is a costly but necessary investment and if you decide to rent, you won’t have to worry about any these costs:
- Utility Costs
Typically, homes are bigger than apartments, therefore, any utility costs such as electric bills can be higher. When you rent, you can even negotiate this type of expense.
- Maintenance Costs
Restoring and updating your house is an essential obligation for every homeowner. You have to take care of your yard and key spaces (e.g, kitchen) maintenance, and sometimes, they can cost a lot of money.
When you rent, any type of repairs, improvement, or maintenance – and their costs – are your landlord’s responsibility. You won’t have to worry about an external and internal painting job or to repair any broken dishwasher.
Remember to include these terms on your lease agreement and stop worrying, just call your landlord and get it fixed.
- Insurance Costs
The national average for home insurance is $2,305 and in some states, you can even pay more. On the other hand, renter’s insurance is cheaper and the national average is $187 a year. Moreover, renter’s insurance covers nearly everything owned, from furniture to computers.
- Access to Luxury Amenities
When buying a house, having access to luxury amenities is not a priority because it costs thousands of dollars to install and maintain. However, it would be nice to have a ground pool or a fitness center. When renting, you can have access to these conveniences with a monthly fee or sometimes, with no charge at all.
Make the Smartest Decision
As you’ve read above, renting a house has a lot of benefits and it’s a good option to stop paying your house’s mortgage, especially during this time of uncertainty. Also, depending on your situation, you might require cash quicker to solve any financial hardship. At Colorado Cash For Keys, we provide real practical solutions and we want to help you in these hard times. Contact us and start a stress-free lifestyle now.