With the wave of foreclosures past and future, renting in today’s economy can be a much better choice for you. The benefits of renting a home can far outweigh buying a home. Here is a list of the top 5 reasons renting a home can be better than buying a home:
1. When renting a home, you have no maintenance or repair expenses. When you buy a house, all these costs are the responsibility of the buyer. Just because you can afford your monthly house payment, doesn’t mean you have anything leftover to fix any problems that occur. When you rent, these expenses are incurred by the landlord or rental company.
2. The ability to move if you had to. If you get transferred, or lose your job, your not locked in to a monthly mortgage payment. In today’s real estate market, trying to sell you home could prove very costly. Even if you have to break your lease, it’s much better than defaulting on your mortgage. If the neighborhood or schools start to go downhill, you can move to a better place easier. Renting gives great flexibility until you find a place you want to spend the rest of your life.
3. Mortgages have become increasingly harder to get. With the foreclosure mess, requirements for mortgages are much higher. Stellar credit and down payments of +10% are standard. Why not rent for a few years, and build up your nest egg, so when you do purchase, you will immediately have some equity in your investment.
4. Renting can cost you much less. With the greater availability of rental properties, rents have fallen. You will be able to rent a much higher end home then you would be able to if you purchased. You have much higher debt to income ratios when renting, as opposed to buying.
5. Home ownership is not for everyone. People have had it ingrained in them, that the American dream is home ownership. For many people, this should not be the case. Buying a home brings many new challenges and headaches, renting is much simpler.
Owning your own home has many benefits, but renting has just as many. You have to decide for yourself, based on your situation. For people with transient or unstable jobs, financial concerns, or limited resources, renting is a good decision. Home ownership is a big decision, and should not be entered into lightly.