Many people hope to buy their own home. There are a number of benefits to doing so. You have more freedom to make renovations to your house and could be more financially stable when you are the owner. However, there are a number of reasons why you may be better off renting instead.
Benefits of Renting
You should consider what you will have to give up before you decide to become a property owner. Here are some of the advantages of renting instead of buying.
Many apartment complexes have recreational rooms, pools and other facilities to make your stay more pleasant. You should decide whether or not you would be willing to give them up.
You will have many more expenses when you own a house. Many landlords will cover some of your utilities when you are renting, but you will have to pay for them yourself when you are the owner. You will also have to shell out money for property taxes and hire contractors to do repairs when something breaks. You will also have to pay for homeowners insurance.
You won’t need to worry about these expenses when you are renting a property. You will need to pay for rental insurance instead, but the premiums will be much lower.
You will need to make major changes to your lifestyle if you lose your job, have a major illness or suffer from any other hardship. You will have a more difficult time reducing your monthly expenses if you are committed to a monthly mortgage. You can always try to sell your house, but you probably won’t be able to do that right away (especially in this market). You also may not be able to sell your house for enough to break even on your mortgage.
You would still need to break a lease if you needed to move somewhere more affordable (unless you are renting month-to-month). However, you will at least have a way out.
Renting is also ideal if you don’t know how long you are going to live somewhere. You may be about to take a job in another city or part of the country. You can move much more easily if you are renting.
Many people quickly lose the romantic notions of home ownership when they realize how many headaches it can involve. You need to worry about making repairs, paying bills on time and dealing with a number of other hassles. You should speak with other homeowners before you commit to taking on that responsibility. You will also need to be aware of the type of house you are considering buying, because some houses will involve a lot more work than others.