While owning your own home seems to be a key element in the American Dream, it may not be the best decision. Weighing the pros and cons of renting vs owning is important when trying to decide which is better for you, your family, and your lifestyle.
Owning your own home isn’t as immediately profitable as it used to be. With many banks requiring larger down payments and higher interest rates,along with a real estate market that is just starting to make a comeback, it can often take much more time to see a profit than it used to. If you have a down payment saved and ready to go, consider staying a renter a little while longer and investing the money instead – you may be able to see a quicker increase than buying a home!
Renting can often save you time and stress. While you may be responsible for general maintenance and lawn care as a tenant, bigger issues are not your concern. Instead of hiring contractors, spending time repairing issues yourself, or replacing expensive appliance, you can simply place a phone call to your landlord or property manager and you’re done! Home ownership can cost several hundred to several thousand dollars a year in basic upkeep. If you aren’t prepared to spend that much, renting may be a better fit for you right now.
Renting also saves money by freeing you from the responsibility of property taxes, homeowners insurance, and high mortgage rates. You can save money monthly by renting and for paying much lower priced renters insurance, allowing you to continue to grow your savings until the time is right for you to buy a home, or to save up for other things important to you.
Renting also allows freedom and flexibility homeownership can’t. Unless you fully intend to stay in your home for over ten years, renting provides the opportunity for you to move without consequence. New jobs, a desire to live somewhere different, or even moving back to your hometown is all much easier without needing to sell or find tenants for your owned property.
While owning a home is something many strive for, be sure it’s the right place and time for you to make that jump. Renting is full of benefits that shouldn’t be overlooked. You can be a happy renter, save up for a good-sized down payment, and wait until the perfect time and the perfect home fall into place.