When is Renting a Property a Better Option than Buying a Home?

Owning a home is one of the great American dreams. Everyone is raised to believe that home ownership is the holy grail of success in life, and we work towards it throughout our lifetimes.

However, times have changed, and as a result home ownership has been put out of the reach of many people. This isn't always a bad thing.

In fact, home buying isn't the only option. Here are some reasons why renting a property might be a better option than buying a home.

The Cost

Housing prices went crazy around the time of the housing bubble. Even after it burst, some homes are still sitting at a steep price. Often times this can be a deturrent to prospective buyers who simply can't afford to buy a home.

This is where renting can be a better option. The cost to rent vs buying a home can be much more affordable. Not only are you typically paying less, but you also aren't locked in for the long haul.

So, if you can't make your rent payment any longer or would like to find a cheaper place, you can simply find a new place to live instead of trying to sell your home.

The Convenience

People today don't have the purchasing power of those who came before them. This means that expensive repairs on top of an expensive mortgage are all up to the homeowner.

If you're renting, those repairs are included in your rent and are taken care of by the landlord. This often means you also don't need to mow the lawn, shovel the walk, or tend to the garden unless you really want to.

If you decide that area or neighborhood isn't for you, then you can leave as soon as your lease is up. The convenience of renting can be appealing to those unsure if they should rent or buy.

The Comfort

Heating in cold regions can add up. There are homeowners all over the country that can barely keep a roof over their heads and sometimes have to rely on space heaters to have any semblance of warmth in the winter.

The same goes for air conditioning in the South. If you are renting, central heating and A/C is often the responsibility of your landlord.

In fact, try to ensure that at least those utilities are included in the rent. A damaged boiler midwinter can be a disaster and it's a good idea to make sure the landlord is the one paying for it.

Changing Your Mind

When you purchase a home, you are guaranteeing that you are staying in that neighborhood for the long run. It's possible that your life will change, or the neighborhood will change, and you'll still be locked into the house you bought.

When you're renting, you can choose to move to another part of the city, or another city, or even another country when your much shorter lease is up.

Closing

There are benefits to owning a home, the primary one being that your landlord can't kick you out of it if he or she needs it at some point. However, renting is more than a viable option these days.

People often say, "but you're throwing money away!"However, if you aren't in a position to buy a home you can end up saving money until you're ready to settle down.

All things considered, it's best to sit down and review your current status financially, personally, and work wise when deciding if you should rent a property or buy a home.

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Topics: Renting Your House, Real Estate Tips