9 Incredible Benefits Of Renting A Home Versus Buying
There is a never-ending debate on renting vs. buying a home. Without a doubt, all these two options have their pros and cons. Some feel that having their own homes feel better than renting, while others prefer renting because of the flexibility and fewer responsibilities that come with it. If you are considering renting instead of buying a home, you are making the right decision. There are plenty of townhomes to rent you can check out.
Renting gives you home without any of the burdens that come with homeownership. In this article, we discuss some of the benefits that come with renting a home. So, without wasting time, let’s delve into them.
1. It is way less expensive upfront
Normally, when renting a home, you don’t have to pay any down payment. You just pay a security deposit, which is equal to one month’s rent. And that’s it. This deposit will be returned to you as long as you haven’t damaged the property.
But this isn’t the case when buying a home. When buying a home through a mortgage, you are required to have large down payment. It is usually 20% of the property’s value. That down payment is what results in you having equity in the home, and it increases as the mortgage is slowly paid off. So if you don’t have money for a down payment, you are better off renting a home.
2. It offers more flexibility
One of the most significant benefits of renting a home is that it offers more flexibility to renters. If you want to relocate to another city or country, you can easily do that. That’s because it is pretty easy to break a lease than to sell a house. Selling a house is not only time-consuming but costly too. So if you are not planning to live in a particular city for many years, renting would be an ideal option.
3. There are no many risks involved
Of course, buying a home is a huge investment that you cannot take lightly. There are plenty of factors you need to consider, such as the location, amenities, and infrastructure. Home value can fluctuate, and it can affect homeowners in a big way. But when it comes to renting, you don’t have to worry about the property losing its value because you are only there temporarily.
4. You don’t have to worry about costly repairs
When you rent, you don’t have to worry about repairing that running toilet, broken water, or a leaking pipe. That’s because these are the responsibilities of your landlord or management company and not you. You simply call the landlord or the management company, and they will fix it right away, saving you a lot of money.
On the other hand, if you opt to buy a home, you will be responsible for all home repair, maintenance, and renovation costs. It can be very pricey, especially when multiple repairs pop up at the same time. So if you don’t want to worry about digging deeper into your pocket for costly repairs, you can rent a home instead.
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5. Access to amenities
Another significant benefit of renting a home instead of buying is that you get access to amenities that could have been a huge expense. Some of the luxurious amenities you may have access to include an in-ground pool, fitness centers, etc. The best thing about this is that you won’t be charged additional costs for these amenities.
As a homeowner, if you want to have access to these amenities, you must dig deeper into your pockets to install and maintain them, which could be very costly.
6. You don’t have to worry about homeowners’ association fees
Homeowners’ association fees can be a nightmare for many homeowners. In some neighborhoods, the homeowners’ association fees can be as high as $300 per month. This is undoubtedly a huge expense. But if you choose to rent a home, you won’t have to worry about that because it is not your responsibility.
7. Lower utility costs
While homes generally vary in size, they are typically larger compared to rental apartments. This makes them more costly to heat and with higher electricity bills. Rental properties generally have a more compact floor plan, making them less expensive to heat and power. In addition to that, many landlords and management companies cover certain utilities for their tenants. This means that as a tenant, you may end up with free water, heat, internet, etc.
8. Lower insurance costs
Homeowners generally need to maintain a homeowners’ insurance policy, which is equivalent to a renter’s insurance policy for renters. A renter’s insurance policy is way cheaper and covers almost everything the tenant owns, including furniture, kitchen appliances, computers, and other valuables. The average cost of a renter’s insurance policy is about $180 per year. On the other hand, the average cost of a homeowners’ policy is $1250 per year. This is way more expensive compared to the renter’s insurance policy.
9. No property taxes
Finally, another major benefit of renting a home versus owning is that renters are exempted from paying property taxes. Property taxes can be a be a nightmare for homeowners. These taxes vary from one state to another. In some states, the cost associated with property taxes can even reach thousands of dollars each year. But when you rent a home, this major expense of homeownership will be off your back, and you can potentially save a lot more money every year. You just never know!
Final thoughts
At the end of the day, the decision of renting versus buying a home comes down to your preference, your budget, and how much longer you want to stay in a particular city. If you don’t like the idea of staying in one place for many years, or you are not ready to handle the responsibilities that come with homeownership, renting a home is a very viable option. However, make sure you set your budget beforehand and then look for a home that suits your budget. Also, make sure the home is strategically located and has all the necessary amenities you are looking for.