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Are you trying to decide whether you should rent or buy a home?
Navigating through the decision-making process of such a sizeable investment can be overwhelming and difficult.
However, today, we are offering guidance with twelve reasons why, in many cases, it makes more sense to opt for renting rather than buying!
From financial savings to flexibility, continue reading for detailed insights on why so many people choose to rent over buying a house, and maybe even be persuaded that this could be the right choice for you, too!
#1. You Can Buy a Home That’s More Trouble Than It’s Worth
With the above in mind, you don’t want to buy a home that’s within reach if it’s not in good condition.
Fixer-uppers generally have many issues that can cost as much as the original price tag of your new house.
Your home should be an asset, not a liability.
#2. You Have Consistent Access to All Amenities
As a homeowner, you must pay for all the amenities you want, including gym equipment, a pool, or even air conditioning.
Those who rent have access to these amenities as part of renting without having to invest heavily into all of it.
#3. No Having to Deal With Difficult HOAs/Neighbors
HOAs seem much more common than they used to be, and they’re a significant source of financial stress with all of the fees and regular stress due to the limitations put on you as a homeowner.
Additionally, whereas you can move away from a pesky neighbor as a renter, you’re stuck with them if you purchase a home and plan on staying there.
#4. Relocating for New Jobs Is Easier While Renting
Careers aren’t as stable as they used to be, with people starting lower in a company and working their way to vice president 20 years later.
This lack of instability means many have to jump from place to place, looking for work throughout their lifetime.
Renting makes it easy to pick up and move, whereas homeownership is for those who know they won’t need to move anytime soon.
#5. No Committing to One Single Location
A lot of young people want the freedom to be able to explore the world and try out different things before they settle down.
Renting grants you that flexibility, while homeownership is more of an anchor.
#6. You Might End Up Practically Renting Anyways
People think that homeownership is a ticket out of insane rental prices.
But that’s generally not the case.
Housing costs and mortgages typically run higher than rental prices, especially if you’re overextending yourself financially and buying more home than you can afford.
This lands you in the same cycle as you would if you were renting.
#7. You Can Easily Buy Too Much House
Banks make it easy to get money if you have the proper credit score and downpayment, but that locks you into a long-term loan that you must make sure you can afford for the foreseeable future.
As a result, it’s easy to buy too much house.
Those seeking to be homeowners should only buy what they can afford and what they can pay off relatively quickly, which is very hard to accomplish these days.
#8. You Can Always Downsize If You Need to
Renting allows you to downsize and look for lower rent if needed
When you buy a home, you cannot downsize or decrease your spending on a whim.
#9. There Are Fewer Unforeseen Emergency Expenses
Even when renting, the reality is that unforeseen emergency expenses are still a possibility.
That said, being a homeowner can result in spending more money when you least expect it.
With a home, you may face random expenses at any moment, totaling thousands or tens of thousands of dollars you need to be ready to spend.
#10. No, Renting Out Is Not That Simple
Some people want to buy a house to rent it out for extra income.
But while it’s advertised online as a way to grow wealthy easily, it’s far from simple.
If you’re thinking about buying a home to rent it out, don’t do it.
#11. You Avoid Taking on Too Much Responsibility
Homeownership requires a lot of responsibility that many overlook until they’re actually in the position of the homeowner.
From repairs to regular maintenance to lawn care, there’s so much you will need to take care of physically and financially once you own a home, something you don’t have to deal with when you rent.
#12. No Dealing With Continuously Rising Costs
Rental costs rise, but there’s still more predictability than home costs.
From variable interest rates to inflation-boosting property taxes and beyond, it’s easy to be blindsided by changes in your budget as a homeowner.
How to Save For a House While Renting
It can be tricky to figure out how to save for a house down payment while you rent.
But when you follow some simple steps, the process becomes much easier.
Here are the steps to follow to get you out of an apartment and into a house.
Slash Your Monthly Bills
With inflation rising, your monthly bills are likely getting out of control. Luckily, there are some simple steps you can take. Use this guide to help you save up to $7,000 a year on your monthly bills.
How To Invest In Yourself
We all know we grow wealth by investing in the stock market or putting our money into savings accounts.
But many of us are unaware that the best returns are by investing in ourselves. When we improve ourselves, we have the ability to earn a lot more money, which makes it easier to become filthy rich.
25 Ways For How To Ruin Your Financial Life
Do you know the biggest ways people ruin their finances?
The reality is, it is easier than you think and you might be making some of these mistakes too.
Learn what to avoid if you want to build wealth.
Alternatives To Cable TV
Are you sick and tired paying your cable bill?
In the past, your only option was going without TV. But not anymore. Now there are many options out there.
Here are the best ones to look into.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.