Home ownership is a lifelong goal of many people. Even if home ownership is high today, it was not always the case. Families either needed to construct their homes or rent a house from somebody else. While both buying and renting have their financial benefits, owning a house is not right for everybody.
Below are some of the reasons why you must rent what you own:
- Access to Amenities
A financial advantage to renting instead of purchasing a home of your own is having an access to the amenities that would be a huge expense. Luxuries like a fitness center or in-ground pool come standard at a lot of mid-scale to upscale apartment complexes without extra charge to tenants. If homeowners want to match such amenities, it’d cost thousands of dollars for maintenance and installation.
- No Repair Bills or Maintenance Costs
The benefit that renters enjoy is that they don’t have repair bills or no maintenance fees. If you rent a property, the landlord is responsible for repairs, maintenance, and improvement. If a unit stops working or the rook starts leaking, you can contact the landlord and it will be fixed. On the other hand, homeowners are responsible for every home renovation, repairs, and maintenance costs. Depending on the repair’s nature, it may get expensive.
- No Downpayment
Renters have better financial deals are upfront cost. Renters might need to pay security deposit equal to the rent good for a month. But, when buying a home with mortgage, you are required to have a sizable 20% downpayment. Even if the exact amount renters have to pay upfront differs from case to case, the overall amount is less than the downpayment to purchase a house.
- No Real Estate Taxes
Renters do not need to pay property taxes. A real estate tax may be an expensive burden for homeowners and differ by place. The costs may be thousands of dollars every year. Even if the property tax calculation is complex, it is determined based on the home’s estimated property value and amount of land. Property taxes may be a financial burden with newly built houses getting bigger and bigger.
- Downsize Anytime
With the economy today, a lot of people struggle when making ends meet. Through renting, the citizens have an option to downgrade to a much affordable living space. Being able to downsize anytime is important for retirees who like a less costly that matches to their budget. If you are a homeowner, it is much harder to break free of a costly home due to the involved fees with selling and buying a home.
- Low Utility Costs
Even if the homes may vary in size, they are usually bigger than the rental apartments. As results, it is much expensive to heat and even the electric bills are higher.
Conclusion
Owning a house is beneficial for homeowners in the long run. But, for people who want to avoid the hassles of homeownership, the property taxes, and costs of upkeep, renting is a better choice. It depends on one’s financial situation and lifestyle.