Home ownership is often billed as smarter or cheaper than renting. While it does have its advantages–stability, freedom, etc.–buying isn’t always the best option. Here are five good reasons to rent.
1. Maintenance and Repair Costs
Unlike ownership, When you rent a home, your landlord is responsible for all of that property’s maintenance and repair costs. Depending on the age and condition of the property, along with any unforeseen disasters, these costs can add up.
2. Real Estate Taxes
An obvious benefit that renters have over homeowners is that they don’t have to pay real estate taxes. Depending on the state, county, and municipality you live in, these taxes can pose a significant burden on top of your mortgage and other costs.
Things change, particularly when you’re a young professional. If in six or eight months you’re offered a fantastic job opportunity on the other side of the country, you don’t want to be stuck with a house you can’t get rid of. Alternatively, if times get tough, renting also allows you to downsize more quickly.
4. No Big Down Payment
A rental security deposit of one or two months’ rent can sound pretty steep, but it’s nothing in comparison to the down payment you’ll have to make when purchasing a home. If you don’t have the savings to make that payment with enough left over for a few months’ mortgage payments, renting is a better option.
While home prices have recovered somewhat from the 2008 market collapse, experts are divided about the timeline and the extent of the real estate market’s bounce-back. As a renter, you’ll remain unaffected by these fluctuations.