The Benefits of Renting vs Buying a Home

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Buying a home is one of the biggest decisions you will ever make, we always hear the benefits of owning a home, but what about renting one? Its about investing in your future, especially for the younger generation, the decision to rent or buy is a big decision and a understandable problem to have. With both having their own advantages and disadvantages, factors that should always be considered in this type of decision.

When it comes to property it can be beneficial to consider a local property valuer when it involves large financial decisions whether buying or renting, they can help ensure you are paying the correct amount.

Although renting and buying are both big financial commitments, they differ In a few ways. so you ask the question, in what areas does renting beat owning a home? Here are 9 benefits to consider before making your move.

Less Expensive Upfront

 

Security deposits, first and lats months rent signing and nonrefundable application fee’s is a few of the financial hurdles to overcome when renting, when added up, it doesn’t compare to the steep requirements of a down payment and closing costs when buying a home. and yes, monthly rent might be higher than a monthly mortgage cost, but there is no need to be concerned and stressed about property taxes and home repairs.

Low Risk

Various investments carry risks, buying a home is one. When renting you have less worry about market crashing which may put you under water when it comes to your home, there’s also unexpected expenses like home repairs that are costly and could wipe out your savings. When renting the biggest risk you take on is whether or not you’ll be happy with the place once you’ve moved in, and that’s a risk that most of us can afford to take.

More Flexibility

Freedom, is one of the biggest benefits of renting vs. owning! For example, if you wanted to pack up and move across the country, it would be easier to break a lease than sell a house, and the process would be a lot quicker as well.

And even if you don’t cut out early, renting sets defined terms that you can base big living decisions around. A lot of people like knowing that if they end up with regret over their living situation and/or location they only have to put up with it for a year or so.

Repairs, Not your Problem

When you rent, certain repairs and the costs involved like a running toilet, warped window trims or a broken dishwasher are the responsibility of the landlord/management company. Depending on your lease though, you may be required to contribute to the repairs of the problems if they were cased as a direct result of your actions. There shouldn’t be an issue if you take care of the property while renting. And calling the landlord is less painful than having to call a repair company on your own. 

No Property Taxes

When you’re renting vs owning there is no obligation in terms of paying property taxes on your unit. The taxes are a major expense for a homeowner, and this can put an otherwise affordable home outside a buyer’s price range. Taking into consideration in some state’s property taxes are higher than others, and if you’re renting that is a major weight off your shoulders, and potentially more money that you’ll save at the end of every year.

You Know What You’re Paying Each Month

Its no surprise that many of the benefits mentioned so far when renting vs owning a home is finances. That’s because what you lack in autonomy as far as home decorating and renovating you more than make up for in cost convenience.

One area where this is clearing proven is in the monthly budgeting, home ownership is a variable cost endeavor and depending on the terms of your mortgage, without the input of the owner themselves interest rates change over time. Property taxes is another cost to consider as this will always fluctuate throughout the year.

But when renting, you lock yourself into a set monthly amount for the duration of your lease. So, the only other variable cost you should consider would be the utility bills, and this comes down to the amount of usage during your lease.

Some Utilities May Be Included

When renting, many landlords or management companies may include to cover certain utility costs, which could mean you end up with free internet, water, heat or more. And for the utilities that aren’t included, they still end up cheaper than being an owner of a home.

It’s a Luxury Not to Sweat the Small Stuff

When renting, you don’t have to think twice about all the little things that make up a homeowner’s day-to-day responsibilities. Like chipping paint, yellow grass or leaves in the gutter. In fact, you probably don’t notice them, because you chose to spend your weekends with friends rather than climbing up a ladder to clear the gutters and fixing the house. So if you don’t want to why worry about the small things and enjoy your weekends out, renting might be the option for you.

There’s No Pressure to Upgrade

As a homeowner you’re in it for the long haul, yes, it is an investment, but upgrades aren’t just part of the experience, its usually expected if you decide to sell one day and want to make a good return. As a renter it’s a lot easier to accept an outdated kitchen or poorly designed bathroom as you know it won’t be forever.

Renting vs Buying, ultimately the decision comes down to what you can afford and the amount of responsibility you want to have when it comes to a home. There’s nothing wrong with foregoing home ownership for the flexibility that comes with renting, nor is there anything wrong with going all in and buying a home.

If your still not convinced and need a better understanding of where to begin, seeking out an industry expert in property valuations will be the first step in considering what is right for you and your financial situation. At the end of the day, you want to be happy, no matter where you end up.

Author Bio

Daniel Miller – LinkedIn profile

Daniel Miller is an extensively experienced Senior Property Valuer who has been with WC Valuers for a decade. He has expert skills in property valuation across all types and purposes, including the preparation of reports that ensure compliance with taxation, superannuation and litigation requirements. Daniel is continually enhancing his industry knowledge through career development opportunities and further education, both as an attendee and presenter.