People in America have long held the idea that renting is something you do only until you can afford to buy a house. But, it’s not that cut and dry. Depending on your lifestyle and financial situation, renting might be the better choice. Here are five reasons why renting is good.
1. It’s sasier to move
Unless you know you’ll stay put for at least five years, it’s generally better to rent than it is to buy. Otherwise you’re liable to lose money from closing costs and interest you pay on your mortgage. Renting gives you the flexibility to make a career change or to move if the job calls for it.You also might want to try living in a different area, which is easier to do when you rent.
2. No maintenance or maintenance costs
Once you’re a homeowner, you need to learn to fix an infinite number of things around the house, not to mention acquiring the fine art of maintaining a lawn.It’s either that or hiring someone to do the work for you. The first option is time-consuming, and the second is expensive.
Also, stuff breaks. For example, the average cost to fix a plumbing leak is around $150. If you need to replace plumbing pipes, you could spend thousands. If your air conditioner goes out, you could spend between $3,000 and $10,000 to get a new one. When you rent, you don’t need to worry about maintaining your rental unit or the grounds. Those are the landlord’s responsibilities.
3. Lower cost to move in
You typically need to pay at least first month’s rent and a security deposit when you rent. You might need to pay last month’s rent, too. But, you can sometimes find deals where the first month is free — not so when you’re buying.
You need to come up with a down payment, and most lenders require that down payment to be 10 percent or 20 percent of the home’s price. Some lenders might go as low as 5 percent, but even that would generally be much more than the amount of money you’d need to get into a rental situation.
Unless you’re moving to a country club estate (and even then), you can’t get all the amenities you’d get from living in some rental units. Many buildings offer concierge services, an on-site movie theater, a fitness center with spa services, a swimming pool, a juice and coffee bar, nature trails and a business center.
5. You don’t pay real estate taxes
Homeowners need to pay property taxes. These costs vary depending on where you live, but they can be expensive. Property owners are usually taxed based on the value of the house. These taxes can increase, too. If you rent, you don’t need to worry about paying real estate taxes.