Louisa Eunice
Owning a home is the ultimate dream for many. Since I was 21 years of age, I always wanted to be a property owner. The thought of paying rent every month was discouraging, and I wanted to leap to ownership, but so did millions of other people. However, times have changed, and people are considering renting versus buying a property. Depending on the circumstances, renting may make more sense to some. So, is renting forever and building wealth through investments an intelligent strategy? Members of a popular online platform shared their thoughts.
Renting Pros
Renting might be the best choice for you and your family, so here are a few pros.
1. You Won’t Have to Worry About Maintenance and Repairs
“With renting, you are responsible for fewer things,” said a first user, “You don’t have to worry about maintaining or renovating property for the next tenant. If you get bored of living in one place, you move and don’t have to worry about what’s left behind.” A landlord must always maintain a property, and a tenant won’t.
2. Access To Expensive Amenities
When building a house, you must consider incorporating amenities for your convenience. This could be an indoor pool, a gym, or anything else with a hefty price tag. But renting gives you access to all these amenities without charging extra cost. In rental buildings, these amenities are shared amongst the tenants and bring much-needed convenience.
3. No Taxes to Worry About
Building a home means dealing with property taxes. This is one of the significant benefits of renting forever versus building and owning your home. Real estate taxes are always hefty for homeowners. “Your property taxes are estimated based on the house and land value. So, the more expensive your house and land, the more expensive your taxes will be,” advised a second user.
4. Doesn’t Confine You to a Single Place
“I don’t intend to stay in one place forever,” commented a third user, “Life is too short to stay in a single coordinate.” This statement makes me wish I spent the majority of my twenties traveling to see different places and not settling down in a single place. Renting doesn’t tie you down to a single location; it allows you to move where you desire.
5. Won’t Have to Worry About Decreasing Property Value
Decreasing property value is one element that property owners constantly worry about. Property value goes up and down. It affects homeowners significantly but doesn’t affect renters. Home value will impact the amount you pay in taxes but not rent. In a rocky housing market, homeowners face a lot of headaches.
6. Easy To Downsize
If renters need to downsize into a smaller home or apartment, they can easily do it when they reach the end of a lease agreement. This type of flexibility is important to retirees who may want smaller living spaces to match their decreased living costs. However, breaking free from a large, expensive property is complex, and even selling it may only cover some appropriate expenses.
7. Lower Insurance Costs
Homeowners maintain a Home Insurance Policy equivalent to a Renters Insurance Policy. However, the latter is much cheaper ($179 per year) and protects everything you own, including furniture and other expensive items. However, a Home Insurance policy is more costly ($1,249 per year), which makes the policy more friendly for renters.
8. Renting Is Cheaper in the Short Term
Apart from having no property expenses when renting a house, it’s practically cheaper in the short term. Your move-in costs are also more affordable as you’ll only pay a security deposit and nothing more. Plus, once you move in, you won’t have additional expenses other than your rent.
Renting Cons
But even if there are great reasons to rent, there may be a few reasons why it doesn’t make sense for your lifestyle.
1. Rent May Go Up Unexpectedly
“It’s up to the landlord’s discretion to increase rent depending on a few factors,” said a platform member. You’ll have to move into a budget-friendly apartment if the rate doesn’t meet your budget. This may cause inconvenience, especially if you didn’t plan to move.
2. No Freedom To Renovate
You may want your home to look a certain way, but as a renter, you’ll not have the freedom to renovate the house to your liking or convenience, an advantage that a homeowner will enjoy! This will limit how you can organize or decorate your home.
3. Rent Isn’t Paid Off, a Mortgage Is
Renting has many benefits, but a homeowner gave a different perspective when he advised, “I think you have this fairytale idea that rent doesn’t go up. You mention houses cost money in maintenance, and it’s wasteful. But, if you lock in a mortgage, let’s say $2400 a month. In 30 years, you’ve paid in full and have maintenance, much of which you can do yourself. You’re a little narrow-minded to assume it’s easy to rent instead of buying and investing the difference. Also, remember a mortgage is paid off, but rent isn’t. In 50 years, you’ll be 70. Instead of a paid-off house, you’ll have $9000 a month in rent, but you were able to invest the difference, so I’m sure you’ll be fine.”
Source: Reddit.
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