Homeownership is often touted as being smarter (or cheaper) than renting.
While it does have its advantages such as stability, freedom, etc. buying a home isn’t always the best option for everyone at all times.
Here are five good reasons to remain renting instead of buying:
Renters Avoid Most Maintenance and Home Repair Costs
Unlike home ownership, when renting a home, your landlord is primarily responsible for the property’s maintenance and potential repair costs. Depending on the particular age and condition of the property, along with any unforeseen disasters, these costs can be pretty significant.
Most Renters Are Usually Not Responsible for Real Estate Taxes
One obvious benefit that home renters have over homeowners is that they usually don’t have to pay additional real estate taxes.
Depending on the state, county, and municipality you live in, these taxes can pose a significant burden on top of a mortgage payment and other costs.
Renting Gives Renters More Freedom and Flexibility to Move
Things can change, particularly when you’re a young professional…
If you’re offered a fantastic job opportunity in six or eight months on the other side of the country, you might not want to be “stuck” with a house and mortgage that you can’t quickly get rid of.
Alternatively, renting also allows you to downsize more quickly if times get tough.
Most of the time, There is No Big Down Payment Required to Rent a Home
A rental security deposit of one or two months’ rent can sound pretty steep, but it’s nothing in comparison to the potential down payment you’ll have to make when purchasing a home.
If you don’t have enough savings to make the monthly payment with enough left over for a few months’ additional mortgage payments, renting may be a better option.
An Uncertain Real Estate Market Makes Buying a Home Seem Risky
While most home values have recovered from the collapse of the real estate market, many housing experts are divided about the timeline and the extent of the bounce-back. As a renter, you’ll largely remain unaffected by these cyclical price fluctuations.
The bottom line is that if you’re looking for your next place to call home, fully consider all the advantages of renting a while longer before committing your time and resources to buying.