Aside from the “American Dream” of owning a home, is there really any benefit to purchasing a house instead of renting? With the economy in flux and the real estate market being one of the most inconsistent and unpredictable investments, it’s important to assess such a risky expenditure. Here are 3 of the main benefits to renting instead of purchasing a home.
Can Be Cheaper
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Many people are hooked on the concept that it is ultimately cheaper to purchase a home than rent. However, these same people have recently learned that their house, until officially paid off, is often property of their bank. This means that you can put in decades of money into a home only to discover that it is not really yours.
Although many people associate renting with throwing money away, the fact of the matter is that many people that have lost their home to foreclosure have found that they, essentially, have just been renting all along because they have no tangible asset in the end. Renting is much cheaper short-term and can prevent the opportunity of an eventually higher waste of money.
If you actually break down the costs of owning and renting you will often find that renting is substantially cheaper. When you purchase a home you pay an initial down payment and then a mortgage on top of that. When you rent there is usually just an initial security deposit and then a monthly rate much lower than the comparable mortgage.
Better Standard of Living
When you rent instead of own, you have the opportunity for a much higher standard of living. Even though you may not have bankroll to purchase that luxurious suite overlooking the ocean, renting can open the door to afford it. Here are a few other examples of an increased standard of living through renting an apartment :
- Many complexes come with a gym, clubhouse, and pool included
- Some apartments include maid services
- Yard work and Maintenance is provided
Much More Flexibility
Renting is much more flexible than purchasing a home. The renter has options for length of the term as well as pricing variations. When discussing pricing there is a lot of flexibility which gives leverage to the renter; a rare circumstance in the real estate market.
The fact of the matter is that many people are naturally nomads. In America, the average person has moved 10 times by the time they reach the ripe age of 50. Why would you want to lock yourself into one specific location when there is such a high probability that you will need to move? If you’re a renter you will have the flexibility to live in a California beach bungalo or a sky-rise apartment in Chicago.
There is a huge debate circulating in the real estate market on whether you should invest money into owning a home or enjoy the luxuries and simplicity that comes with renting. Here were 3 of the arguments in support of renting instead of purchasing. Would you prefer to rent or own?