When looking for a new place to live, a lot of people think about renting vs buying. It is a personal choice. You can’t say one is good and the other is wrong.
Here is my list of 5 advantages of renting a home:
1. No Big Down Payment.
When you move into a rental home, you do not have to have a big down payment, like when buying a house. In order to move in into rental, you just usually need to have first, last month amounts, and a safety deposit, which is usually equals to 1 month rent amount.
2. No Responsibilities for Repair or Maintenance.
When you rent a property, you are not responsible for maintenance or repair expense. When you pay rent, the landlord is responsible for taking care of the all the repairs and maintenance costs associated with the rental. If the sink is not draining, if the faucet in the kitchen sink is leaking, if the appliances stopped working, as a renter, you are not responsible to fixing any of it. Your whole responsibility is to let the landlord know the issue, and he is responsible to fix it.
3. No Real Estate Taxes
Renters do not have to pay real estate taxes. Taxes are estimated bases on the value of your house, and it varies in different areas. So, once you own a house, you are responsible for this payment. Property taxes can be a significant amount.
4. Flexibility to Move
The lease period is usually 12 month long, but it can be a month-to-month basis. You are free to move at the end of the period. But if you own a home, you can’t get away from it easy in order to sell it. If you need to sell it fast, you can sell it cheaper, but then you lose money in process.
5. Lower Monthly Costs.
When you pay your rent, sometimes you can get lots of utilities included, like cable, water, internet, garbage pick up etc. You can get lots of amenities included too, like pool, gym, etc. So you don’t have to pay extra every month.