Whether you re relocating to a new city or moving out on your own for the first time, you ll be faced with a lot of important choices. One of those choices will be renting a home or apartment versus buying a home. There are disadvantages and advantages to both, but below we ll explore five important reasons you should rent instead of buy. If you do decide that renting is your best route, make sure to check out the top-rated apartment finder services at TopTenREVIEWS.
- Less Responsibility When you rent a home or apartment, most of the responsibility is on the owner s shoulders. This means that if a pipe bursts and damages the sheetrock inside the home, you re not likely to have to pay to replace it. However, if you own a house and the same thing happens, the repair bills will come right out of your pocket. Usually, when you rent a house, you re responsible for minor maintenance such as changing the filters in the AC unit and replacing light bulbs. However, once you ve purchased a house, everything falls on you.
- No Debt When you re renting a house, you are responsible for the monthly rent and utilities; that s it. On the other hand, when you purchase a home, you re more than likely going to take out a loan to finance it. This will put you in debt a few hundred thousand dollars and possibly delay future plans. Purchasing other things on credit can be pretty difficult, at least until you ve made many payments on the house and have made them on time.
- More Freedom When you rent a house or apartment, you ll likely sign a six-month or one-year lease. This means that you re tied to that place for at least that amount of time. Once the time is up, you can move to another location if you choose, or you can renew your lease, provided the landlord agrees. However, when you purchase a home, you are tied to that house for the term of your loan, which is often 20 to 30 years. That is, of course, unless you have the money to purchase a home outright, which most people don t. You may also sell the home, but you are subject to the whims of the housing market.
- No Financing Most individuals who purchase a home need to obtain some type of financing, which usually comes in the form of a loan. There is a long, drawn-out process involved in getting a loan and this sometimes includes exorbitant interest rates. When you rent a home, you don t have to worry about financing.
- Short-Term Housing Needs Renting is best for short-term housing needs, such as those who are attending college or individuals who are in or plan on going in the military. Renting allows you to move easily when you plan on relocating. However, if you purchase a home, you will have to go through the process of selling it or at least maintaining it, which can be frustrating.
As you can see, there are many reasons why renting is better than purchasing. It s important to determine precisely what you need from a home before deciding whether you should rent instead of buy. Analyze the reasons above to determine whether renting or buying is best for you.
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