Purchasing a home is a major step and while homeownership provides several advantages, renting can be just as beneficial.
When making the decision to rent, you must consider two wide categories of factors. The first category represents the economic elements of your decision while the second is a set of emotional and personal factors, which play a significant role despite being intangible.
If you’re wondering whether renting is the suitable option for you, here are signs that you should rent.
Maintenance and Repairs
Renting is a suitable option if you don’t wish to deal with repairs, maintenance, and other uncertain expenses.
As a renter, you’ll discover that rental payment typically increases gradually over time. However, the only uncertain expense that should concern you is the rent.
On the other hand, you must do your own maintenance or hire somebody to do it as a homeowner. Furthermore, you must perform other chores such as cutting your own grass, paint the home’s exterior, and fix your toilets.
You’ll also discover there are big-ticket items that need occasional replacement such as a HVAC system or a new roof.
It’s also important to remember that homeownership requires considerable time, money, and energy. It can be intimidating and you may not want to learn about the tax process or mortgage involved.
Uncertain Future
Being a renter makes it easy to move easily and quickly-whether it’s across the country for a job or simply because you desire a change of neighborhoods.
Experts frequently recommend you purchase a home only if you plan to stay put for numerous years. Therefore, if you aren’t certain whether you’ll hold the same job or remain in the same location, perhaps it’s more sensible to rent.
Bear in mind that a home is a long-term commitment unlike renting, which offers flexibility. Furthermore, the transaction costs of selling and buying property are extremely high, and they could eliminate any profits made from appreciation if you don’t remain in the property long enough.
You also need to determine whether you’ll be able to sell the home easily if the ideal job demands that you relocate across the country.
Although homeownership is an investment, it could take years before you begin noticing any form of return because most of your payments meet the interest early on. Therefore, if you purchase a home and sell it within the first years, you won’t obtain much benefit when it comes to equity.
If a situation requires you to relocate fast, then homeownership may not be suitable for you. In this case, find a rental where the payment is less than what you would pay for a mortgage. This way, you can save the difference towards a down payment.
Renting also gives you an opportunity to get a feel for the area and establish whether you want to settle permanently.
You Prefer Other Investments or Purchases
It’s okay if purchasing a home doesn’t enthuse you. After all, everybody has different priorities, and if you would rather spend your money on your hobby, a trip around the world, or stock investment rather than build home equity, renting could be a better option for you.
Final Thoughts
Homeownership isn’t necessarily an indication of financial stability and security that people presume it is. In fact, it isn’t always wise to buy and some people end up renting their entire life. Ultimately, you’ll need to make a decision that suits your situation and personality.
For more information on renting a property, contact us at Apartment Agents or leave a comment.