Renting an apartment is often considered a rite of passage to adulthood. One thing that signifies the shift into being a full-fledged adult is owning your own home. However, there are actually benefits to renting instead of buying.
Many trappings of so-called adulthood involve financial matters. Financial blogs, such as journeytobillions, can be a great source of information on all things finances.
Owning a Home is a Life Goal For Many
At some point in time, owning a home became a status symbol, a goal to reach. Owning your own home often goes hand-in-hand with marriage and children. In fact, the younger you are to buy a home, the more clout it gives you.
But the truth is that owning a home is a black hole for money and time. Remodels, maintenance costs, taxes – these things all cost additional money AFTER you’ve already dropped a good chunk of change purchasing the home.
That’s not to say owning a home doesn’t have perks, but renting instead of owning has perks that people avoid discussing.
5 Reasons Why Renting is Better
There are many reasons why people choose to rent instead of buy. One of the most common deciding factors is money-related. Here are 5 pros to keeping your rental:
- Landlords are responsible for repairs and maintenance. Along with owning a home comes the crushing responsibility of maintaining it. When you rent, the burden of maintenance and repairs falls to the landlord.
- Homeowners have to pay property taxes. A portion of your rent may go to the property taxes, but homeowners are responsible for the entire tax bill!
- Security deposits are cheaper than down payments. Many landlords require the first month’s rent, plus a security deposit. That can be in the hundreds or even thousands. However, it is still cheaper than down payments needed to purchase a home. Not to mention the mortgage payment that homeowners are locked into for 30+ years.
- Many rentals include amenities in rent. Some rental properties include access to a pool or fitness center. Less glamorous rental amenities include garbage pick-up, water, and heating or cooling costs.
- Flexibility on where to live. It’s pretty hard to pick up an entire house and move it to a new location! Renters have the unparalleled freedom to move wherever they want, whenever they want! For example, when a new job requires the whole family to relocate to Alabama, they can look for apartments for rent in Birmingham easily without having to worry about their old home. In addition, potential homeowners are often limited to where they can move based on the price of homes in the area.
Owning a home is not a bad goal to have. However, society tends to look down on renting as child’s play in comparison. Both renting and owning have their own specific benefits and drawbacks. Each person should do whatever works best for them.
For some, renting a home isn’t a stepping stone to later owning a home. Some people prefer renting, in part because of the five benefits listed above.
When you decide what’s right for you, remember that renting versus owning is a personal decision based on each individual’s wants and needs.