The American dream is to own a home, and it’s still a wise idea to do so – eventually. There are certain situations and times in life, however, when the best option is to keep renting.
Here are five smart reasons to keep renting:
1. You Just Graduated From College
Once you’ve got that diploma in your hand, you might be tempted to officially enter the world of adults by buying your first home.
Hold that thought.
As a new college grad, your skills and degree are highly marketable, and you’ll want to be able to take advantage of the most lucrative job offer that comes your way. Your dream job might be in a city – or even a country – far away from where you live now.
Make it easy on yourself to pack your bags and be on a flight to career heaven within days.
2. You Just Got Married
Once you’ve emerged from the joyous whirlwind of getting married, the next obvious step is to buy a house together, right? Wrong.
If you’re like most newlyweds, you’ve already got a ton of debt left over from college, grad school or even your extravagant wedding.
Hold off on signing for a mortgage loan until you’ve got a good grasp of your budget and how long it might take to pay off what you already owe. When you do buy a house, you’ll feel better knowing you don’t have old debt weighing you down.
3. You Have Wanderlust
The freedom of being able to put your things into storage to go and travel the world can’t be overstated. As long as you have wanderlust, you’ll never feel settled being pinned down to one location.
Take advantage of no mortgage payments to satisfy your inner adventurer.
There will be plenty of houses left on the market for you to choose from when you get back. We promise.
4. Your Life Is In Flux
- Are you at a point in your life where you don’t know what’s next?
- Do you think you might quit your job soon and try working for yourself?
- Are you asking yourself why you still live in the town where you grew up?
If your life is subject to change at any moment, this isn’t the time to go house shopping.
To reap the best value from your house, you’d want to be able to commit to living there for at least five years, but longer is preferable. Keep renting until you know where your life is headed.
5. Your Finances Are a Mess
Did your credit score take a beating while you were in between jobs last year?
If you don’t have a handle on your finances, you won’t be able to get a decent rate on your home mortgage. You’ll save thousands of dollars by waiting just a little bit longer to get your credit score into shape before applying for a mortgage.
When the optimum time comes for you to buy a home, you’ll be glad you waited.
Until then, enjoy the freedom and other benefits that renting offers.