Are you looking to move soon? You may be wondering if you may be better off trying to buy a property instead of renting. While there are quite a few important perks of owning your own place, there are also some very important pros of renting.
In this article, we’ll take a look at 3 reasons to rent instead of buying a home, so you get both sides of the story and can make an informed decision.
No Long Term Commitment
The nature of renting lends itself to people who don’t want to have to enter a long term commitment to one particular property. This is especially important for those of us who aren’t yet sure where we want to permanently live and for people who are still working out how much living space and how many bedrooms they need.
On the other hand, purchasing a property tends to tie you to a particular city or neighborhood – and while it’s by no means a lifelong commitment, selling a property is far from easy.
There are many fees to factor in, plus the risk of you losing out on a considerable amount of money if you are in a rush to move and end up selling your property during a downturn in the real estate market.
Reduced Living Costs
If you own a home, there are fees aside from your monthly mortgage payment to take into account. These include things like maintenance costs, home insurance, and utility bills.
Most landlords will cover the full cost of maintenance (unless you deliberately or carelessly cause damage to the property), and some will even cover the cost of internet and utility bills.
Landlords will typically only cover these bills if they factor the cost into the rent, but it can still be beneficial as you just have to make one fixed payment every month.
Little Upfront Cost
When you purchase a property, you’ll need a lot of money to pay upfront. If you’re buying a home outright, you’ll need to pay the entire asking price, whereas if you’re taking out a mortgage, you’ll still need to a pay a pretty large deposit.
And, there are many other upfront expenses of purchasing a property. These include surveying fees and the various different closing fees, from taxes to legal fees. All of these fees are usually covered by the buyer.
On the other hand, the upfront cost of renting is much more manageable. You’ll usually only need to pay a security deposit (which will be returned to you once you vacate the property) plus a few weeks or months of rent in advance.
A Quick Summary
- Buying a property often seems to be the best option in an ideal world, as you don’t have a large payment to make every month, or, if you’re paying a mortgage, you’re at least working towards full ownership.
- However, there are many underappreciated benefits of renting.
- For example, renting gives you more flexibility and freedom to move, and the upfront cost is far smaller than if you were to buy a property.
- Also, your landlord will typically take care of all maintenance costs, so that’s something you don’t need to worry about when renting.
- On the whole, whether you’re better off renting or buying a property is dependent on your individual financial circumstances, preferences and goals.