The times when owning a house was considered a sign of being well-off are gone. More and more people prefer renting instead of buying a house. Let’s see why.
- More Flexibility
Owning a house in a specific area limits you in a way as you cannot change the location, people around you, or the structure of the house. If you used to like small houses, but now you prefer a bigger one with a spacious yard, it can be extremely difficult to move. Most people don’t dare to change their house just because of all the hassle it causes. However, renting gives you a chance to adjust your house to your changing preferences throughout your life.
- No Insurance and Property Taxes
When buying a house, people tend to forget about all the maintenance expenses, insurance, and property taxes they will have to cover, focusing mainly on the cost of the house. However, homeowners have to pay $3000 on average a year. Plus, they repair and renovate the house once every 10 years while renters don’t have to worry about these costs.
- No Long-Term Obligations
Paying for a house with mortgage is easier and most people opt for that method, but don’t forget about the 20% down payment that is a must. So, if your dream house costs $250,000, you need to have accumulated $50,000, which is not a small sum. Most commonly, people take loans to provide the initial down payment, plus monthly mortgage payments. Overall, owning a house becomes a huge financial burden for people with limited budget and can cause great difficulties if your cash flow stops.
On the other hand, if you rent a house and your income fluctuates, you can change your home and choose a place that you can afford. Besides, every homebuyer expects that the value of his property will increase over time and if he wants to sell it, he will benefit. However, if the house cost drops in that area as a result of some external factors, the owner, or the investor will lose. This can never happen to a renter though. Moreover, he may benefit from house value drops as the rent amount may also decrease.
4. No Homeowner’s Stress
When you have a house it’s always stressful to travel or be away for a long time, as there’s always fear that it may get damaged, or thieves may get into the house. When you just rent the house though, you are more relaxed about it and if you want to travel for a long time you can just leave it, without having to stress it over.
5. Ability to Downsize
We usually choose a house according to the number of family members and of course their needs. Our family structure changes over time, and sometimes a couple may end up living in a huge two-storeyed house that is hard to maintain. It this case, it’s better to downsize the house and get a smaller place, that will be less costly and more comfortable. It’s easier said than done though. Selling your house and buying another one may require a considerable sum of money, plus moving expenses. So, with a rented house, the process is much simpler and straightforward. So, you are never stuck with your physical location.