8 Reasons Why Renting is Better Than Buying
A common life goal is to purchase a house, but owning isn’t right for everyone. You spend a lot of money and time searching for the right property and once you find it, you’re attached to it for many years.
While renting can be ideal for any person that wants flexibility, fewer responsibilities, and doesn’t want to spend unnecessary money. Especially for those who aspire to live in good neighborhoods and conditions.
Discover why renting is the easiest way to live without hassle or financial burdens. Here’re eight reasons:
Renting Helps You Avoid Major Expenses
This is one of the biggest joys of renting. When something isn’t working properly, your landlord is the person in charge of fixing it. So, if the stove breaks or the roofing leaks, all you have to do is call your landlord and let them know.
Typically, annual maintenance costs represent from 2% to 4% of your home’s value and depending on the nature of the repair, you could spend thousands of dollars. Consequently, renting will save you a lot of money.
No Down Payment Is Needed
Although renters often pay a security deposit, this cost doesn’t compare to those made by homeowners. Even in modestly priced cities, homeowners have to save money more than 10 years to afford a 20% down payment.
Additionally, the down payment varies from case to case. For example, if the house’s market value is $250,000, the buyer will pay $50,000 before moving it. And, if you want to live in a better neighborhood or a bigger house, the amount will increase.
You Aren’t Tied to One Property
Being free is the best way to live. Renters aren’t attached to a single location, they can live wherever they want to. Imagine receiving the job offer of your life and cannot go because it’s across the country. Renting buys you the freedom to choose your future by not being attached to a 30-year mortgage.
Access to First-Rate Amenities
Commonly, renting gives you access to amenities than only wealthy people can afford. You could have a fitness center or an in-ground pool one minute away from home. Of course, these luxurious amenities are shared with your complex community but they’re worth it.
Renting Improves Your Cash Flow
When buying a home, you will not only consider the down payment but also many factors that will affect your cash flow. Mortgage payments, property taxes, home insurance, maintenance, and landscaping are some of them.
Better cash flow is related to less expenditure and if you rent a property, all you have to worry about is the monthly payment. This way, you’ll manage your money accordingly and won’t find yourself investing in unexpected repairs.
Property Taxes Aren’t a Problem
Real estate taxes can be a financial burden for homeowners and they vary by county – in some of them, the cost can be significantly high -. Tax calculation is a complex process, but the more a home is worth, the more it’ll cost in property tax. For example, in New Jersey, property taxes are over 2%. So, if your house’s value is $200,000, you would pay more than $4,000 a year.
Renter’s Insurance Is a Low-Cost Solution
Renter’s insurance generally costs between $15 to $20 per month, with a national average of $180 per year. On the other hand, a homeowner’s insurance can cost more than $1,211 annually. So, it’s much cheaper to pay for a renter’s insurance that covers everything you owned, including furniture, laptops, and other valuables.
Don’t Worry About Home Depreciation
Homes and neighborhoods gain and lose value all the time, and even school districts have a big impact on a property’s value. As a tenant, you won’t be affected by these factors and if something goes wrong, there’re endless renting options for you to choose from.
Moreover, market fluctuations and financial crisis are key when determining a house’s value. In 2008, many homeowners couldn’t keep up with their financial obligation because their property value was too low. If now you’re thinking ”I want to sell my house fast and start renting”, you should contact a Home Buying Company.
Thinking About Renting?
Avoiding the hassle of homeownership has never been easier and if you already own a property, you’re still on time to change your life. Contact Captain Save a Home, we buy houses in Milwaukee and our process is fast, quick, and free.