Home ownership is a significant component of the American Dream, and as soon as you get married, people will ask you when you’re going to buy one, just like they ask you when you’re going to have a baby. Amaze and delight them by telling them you’re never buying a house and will just rent instead.
While many people believe paying rent is tantamount to flushing money down the toilet, it has advantages. In fact, for many people, it’s actually the better choice.
Here are 15 reasons renting might just be better than owning.
1. No Down Payment Needed
Buying a house usually means you must cough up tens of thousands of dollars upfront. Meanwhile, if you’re renting, all you need to come up with is the first month’s rent and a security deposit. People complain about having to come up with that, too, but less money is less money.
2. Maintenance Is Someone Else’s Problem
Is your roof leaking? Is your refrigerator broken? Well, if you’re renting, it’s not your problem. Just call the landlord, who must leverage his own expertise to fix the problem, to say nothing of his own money.
3. You Can Move Anytime
Renting gives you flexibility that isn’t possible when you own a home. Do you hate your neighbors? Did you get a new job across the country? You can leave when your lease is up, or better yet, just break it. Your landlord will get to raise the rent when you move out, so he won’t mind.
4. No Property Taxes
One of the many painful indignities suffered by homeowners is property tax. If you’re a homeowner, you have to pay this every year, along with your other taxes. Meanwhile, if you just rent, property tax will not cost you one penny.
5. Cheaper Insurance
Not every renter gets insurance to cover their dwelling, but those who do are frequently delighted to find that renter’s insurance can have a very low monthly cost, sometimes as little as $15 a month. Homeowner’s insurance, meanwhile, varies depending on the home and the state where it’s located, ranging from $83 to $138 a month.
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6. No Market Risks
If you’ve been alive since 2008, you know the housing market can crash, leaving homeowners underwater on their mortgages. Meanwhile, renters can watch all manner of news coverage about catastrophic housing market collapses and never worry about losing money where they currently reside. Yay, it’s someone else’s problem!
7. You’re Not Stuck in a Bad Investment
If you bought a house in a declining area, too bad. Your only choices are selling the home at a loss or praying that the deity of your choice can miracle you up some good fortune. Renters, meanwhile, can just pack their stuff and move to a neighborhood they like better.
8. More Predictable Expenses
Homeowners must budget for unforeseen repairs, rising taxes, and fluctuating interest rates. Renters simply pay the same amount every month. If that amount is going to go up, many landlords must notify all tenants in writing within a certain amount of time, so it’s not a nasty surprise.
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9. Access to Amenities
If you’ve chosen to rent an apartment in a modern complex, many newer ones come with pools, gyms, parking lots, and other amenities. Homeowners who want those things have to reach into their own pockets to build them, or they could just embrace the renter’s life and sneak into one of those modern apartment complexes to use the gym.
10. No Stress Over Selling
Selling a home can be an incredibly stressful process that can take an eternity. And the time wasted is the free part! There are also broker’s fees and other expenses to exhaust before the house is sold. Meanwhile, renters just give notice, hand back the keys, and move on to greener pastures.
11. You’re Not Tied Down
Life can change quickly, and your boring, stable life can be rudely upended by a career change, marriage, divorce, or health considerations. Renting gives you the freedom to adapt without worrying about selling a home, so if you have to move in with your poor, ailing great-aunt to care for her in another time zone, you can pack a suitcase and fly away.
12. Avoid HOA Fees
Many people who own their houses must pay hundreds of dollars monthly in Homeowner’s Association (HOA) fees. As a renter, you will never have to part with a single penny for that nonsense.
13. No Long-Term Debt
A lot of people are afraid of commitment. If you’re one of those people, please be advised that the typical mortgage is a 30-year commitment. By renting, a one-year or month-to-month lease will give you the freedom to be footloose and fancy free, and the place where you live will not be a commitment but just a friend with benefits.
14. Easier to Budget for Utilities
In some rentals, utilities are included. Right there, that’s a considerable advantage over home ownership. Still, even if that stuff does get charged to renters, individual rented apartments are usually smaller than houses, making them much cheaper to heat or cool if you get stuck with the tab.
15. No Renovation Headaches
Homeowners have to save for renovations, obtain permits, and hire contractors. Renters don’t. In fact, some property owners will agree in advance to let renters do their own repairs and renovations and deduct the expense from the next month’s rent.
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