Not Ready to Buy? 5 Benefits of Renting Versus Buying
Although it is satisfying to own your own home and not have to pay rent, sometimes renting a property has more benefits than buying. Both have their pros and cons, but for some, renting is a better option. You might think that owning a home is the only way to go, but you might be interested to learn about some of the serious benefits of renting for a few more years before buying. If you’re still skeptical, read on and see for yourself the benefits of renting versus buying.
You Don’t Need 20 Percent Down to Rent a Property
When you apply for a mortgage, you need to have proof of income, 20 percent down, and other documentation to prove you have the money to pay a mortgage. When you rent, all you need is a security deposit and relatively good credit. Buying a home is a large financial responsibility, so it might be worth it to save for a few more years and enjoy the financial simplicity of renting.
Renters Don’t Have to Worry About Upkeep
Any property requires a lot of maintenance whether you are renting or buying. If the toilet stops working or the refrigerator stops running, it is on you to fix it when you own your own home. When you rent, you simply call the landlord to take care of most problems. According to the professionals of Pest Detective who specialize in pest control in Victoria, if you have an infestation problem while renting, your landlord can call a professional, set up a time to fumigate, and will often split the cost of the labor with you. When it comes to maintenance, renting takes the headache out of property upkeep.
Your Only Obligated to Stay in One Place for a Short Period of Time
Buying a home usually requires you to stay in one place for several years since selling a home is a big ordeal. You often feel obligated to stay in a home that you own for a while since you have to put so much money down that it makes no sense to move shortly after purchasing the property. However, with an apartment, you are only required to stay until your lease expires without financial penalty, so it’s much easier to come and go. If you’re in a transitional stage in your life, or just need a place for a year (or less) renting is the optimal choice.
Transferring a Lease is Easier than Selling a Home
If you need to move quickly due to a job change or to be closer to family, all you have to do is find someone to take over your lease. For a homeowner, getting out of a mortgage requires selling the home to a new owner. Even in a best case scenario, that could take months to do. Aside from the benefit of being able to leave quickly, you also skip the mess of having to sell the home. You don’t have to hire a realtor, or try to advertise the property on your own—once you’re out of the lease, the landlord will take care of the rest and you are free to go.
The Landlord May Take Care of Utilities
Landlords may foot the bill for heat, hot water and your cable television depending on what their policies are. When you buy your house, you are responsible for everything from your Internet service to garbage pickup. That could add hundreds of dollars per month to your household expenses whereas you’ll save money by splitting many of these bills with a landlord when you rent. If you’re tight on money, renting for a few more years will allow you to save on living expenses by getting a little help from the landlord.
Those who are on the fence about buying a home should consider both the pros and the cons of buying a home. While you can set down roots and build wealth by buying a home, it requires a lot of work, know-how and extra money to make sure that your house is kept up properly.