Almost every person dreams of owning a home, but there are many who prefer renting rather than buying their own house. If you are confused about whether you should buy or rent, there are a couple of advantages of renting that you should take into consideration before making a decision.
One of the biggest benefits of renting a house is that you bear low initial cost, and the predictable monthly expenses are also less than what you have to bear when buying a house. When renting a house or an apartment, you usually pay an amount equivalent to one to three months’ rent as a security deposit for damage or cleaning. However, the down payment for buying a house is always some percentage of the total price of that house.
The monthly instalments for buying a house are also a lot more than what you would pay in rent. Yet another benefit of renting is that some of the utilities are usually paid for by the managers or owners of the house. So, with fewer outgoings, you have room for saving more money. Moreover, once you have signed a lease for a specific period, the rent for the house or apartment remains the same throughout the lease period. Some rental units even have free recreational facilities, like playgrounds, swimming pools, gyms, etc.
The maintenance cost of a rented apartment is also a lot less than what you would need to pay for the upkeep of your own home. Other than replacing burnt light bulbs, you usually don’t need to bother with fixing anything in a rented house/apartment. If a pipe busts, a plumbing line begins to leak, or any other maintenance issue comes up, simply call your landlord/landlady and inform them about the issue. You are also not responsible for mowing or maintaining the front lawn. However, if you rent a single family house, then you might be required to maintain the front and back gardens, or arrange the service calls.
Renting also offers more flexibility as compared to owning, as you can always leave the house and move somewhere else; this way, you don’t need to worry about the transfers. You are also not at a risk of losing money; when it comes to selling a house of your own, you need to wait for the right time and favourable market conditions. Selling your home during bad economic times may put you at risk of losing money, but with renting, you can always expect to get a nice security deposit check back when you move out.
Cancelling a lease is a process which is a lot easier and faster than selling a house, and you don’t even need to wait for favourable conditions. Tenants do not pay any taxes, and the insurance for renters is also very cheap, as compared to home owners’ insurance.