5 Situations When Renting Makes More Sense Than Buying
Many people dream of owning a home but it isn't always possible for everyone.
Almost everyone grows up being told that owing is much better than renting and very few people are actually aware of the benefits of renting.
Owning a home is a rite of passage and the final step into adulthood. A lot has changed over the decades, however, and people no longer stay in one place at the same time. This has made renting a more attractive prospect which is why renting makes more sense than buying.
Here are 5 other ways renting is preferred to buying:
1 - You are new to the area
When you move to a new area you probably won't know too much about it. This means that you won't really know where the best neighbourhood is if you want to buy.
You might pick the wrong area if you are thinking of staying there for the medium term.
Renting for a while allows you to take time to get to know the different neighborhoods in your area and to do proper research on the housing market.
After renting for a while, you'll know exactly what you want and where you want it.
2 - You need flexibility for your career
One of the main reasons you probably won't be living in the house over the next five years is because you might change jobs.
You could take a job with the same company but in a different city or you could move to a completely different company. Renting gives you more flexibility and it makes it possible for you to move without suffering major financial loss. You also won't have to worry about selling before moving to a new place.
If flexibility is what you are after then renting is definitely the best option.
3 - You are going to move in the next five years
If you are thinking of buying a home, the first thing you should think of is whether you will still be living there in the next five years.
There are a lot of costs associated with buying and selling homes, so if it's not going to be a medium-to-long-term commitment for you, then renting is the better option.
Experts believe that buyers should stay in the house for a few years to offset the costs and five years is the usual figure they give.
4 - You have credit issues
When you decide to buy a home, you need to ensure that your finances are in order. You are going to have to get qualified and pre-approved for a mortgage.
If your credit history is in shambles, you can say goodbye to owning a home. Renting is the best solution whilst you sort out your debt and build up a good enough credit score.
Once you have improved your situation and got the loan you wanted, you might even lower the interest rates once the lender sees how responsible you have become.
5 - You don't want to be a homeowner
Believe it or not, but some people simply don't have the dream to own a home.
It is a lot of responsibility and you end up spending a fortune on maintenance and landscaping.
There is no landlord who will take care of things for you when it breaks. You need to fork out the cash to do so and homeowners don't always have emergency funds for these purposes.
There are other options if you still want to own a property, like an apartment, but this in turn then comes with body corporates you need to deal with.
If you want to live responsibility-free, renting is the best way to go.
