7 Reasons Renting Could be the Better Housing Option
Owning a home may sound like the American dream, but in reality, renting a home is the smarter choice as it offers you more flexibility and less responsibility, leaving you free to maintain your finances and chosen lifestyle.
And with the skyrocketing prices of real estate in some areas of the United States, renting an apartment is a viable option, as it lets you acquire the space that you need without having to bear a huge financial burden.
Renting an apartment gives you more flexibility compared to homeownership as you are not committed to the property for the long term, which means you don’t have to save money for repairs nor do you have to pay for property taxes or other property maintenance costs.
Renting an apartment lets you live in a space you can call home without all the hassles that come with owning a home. It’s a hassle-free way to live and if you still aren’t convinced that renting is the better way to go than buying a home, let us regale you with a few more reasons why:
1) You can save on some huge expenses
Owning a home means you’re responsible for every single thing that either needs to be repaired or replaced. Whether it’s something as small as a broken doorknob or something big like a new roof, you always want to make sure you have some money saved up to pay for these things.
In contrast, you don’t have to bother with any of these things when you’re just renting an apartment as the property owner is responsible for any repairs or upkeep that needs to be done.
2) Renter’s insurance is a lot more affordable
Renter’s insurance is a lot easier on your wallet compared to homeowner’s insurance. While renter’s insurance would typically set you back anywhere between $15 and $20 per month, homeowner’s insurance costs around — wait for it — $100 each month! That’s a lot to give up especially during these cash-strapped times.
3) No need for a downpayment
Research has shown that even in cities with a reasonably-priced real estate market, a person who is earning median income will still need to save up for a decade to pay the 20% downpayment for a brand-new home. And if you’re looking to settle down in more expensive cities, the time frame is extended some more. For example, if you’re a typical earner who is looking to own a home in San Francisco, you need to save up for 40 years to afford the downpayment.
On the other hand, renters need only to save up for a security deposit, which is still significantly less compared to a downpayment.
4) You don’t have to worry about homeowner’s association fees
There are neighborhoods where homeowner’s association fees can run up to $200 or even $300 a month. That’s a sizable chunk of money that you have to set aside for every month. However, if you’re a renter, you don’t have to bother with this sort of expense.
5) You don’t have to worry about the property’s value fluctuating
Property values regularly rise up and down, and most times, the state of your house has nothing to with it. Rather, the neighborhood where your house sits plays a crucial role in determining its value. These are things you always have to consider when purchasing a property.
When you’re renting an apartment, though, you don’t have to worry yourself with the property’s value fluctuations as these won’t impact the cost of your monthly rent.
6) You don’t have to pay property tax
Property taxes can be very costly. For example, the states of New Jersey and New Hampshire have property tax rates that are more than 2%. Although other states’ tax rates aren’t that high, the basic tenet here is the larger the value of your house, the more property tax you’ll be paying. But if you’re only renting an apartment, this is something that you need not be bothered with.
7) You have a lot more flexibility
Renting gives you a lot more flexibility, allowing you to move when your lease ends. Bottom line is you’re not committed to one place. Even when you already have a rented apartment, it won’t stop you from looking around different communities. Who knows, you might find one that would best fit your preferences and needs!
Or let’s say you’re offered a better job in a different area of town. You can easily move out of your place without having to worry about your property. In a similar vein, if ever you lose a job and need to adjust your finances, you can also move to a cheaper place to cut costs, which is something you won’t be able to easily do if you had a house of your own.