Owning a home isn’t the best move for everyone. For those weighing renting vs. buying, here are a few reasons why renting can be the better choice.
- You want maximum flexibility. Renting allows you to stay put for a couple of months or years without paying much more than a monthly payment. The upfront cost required to purchase a home can set you back financially if you move too soon. Additionally, when moving from out-of-state it may be more beneficial to rent an apartment short term until you get to know the area and get a better idea of where you want to be.
- Buying is out of reach financially. The price tag on homes can be discouraging especially if size and space is important. The down payment required to purchase a home can be as much as 20%.
- You want to avoid maintenance and other added costs. When you rent your landlord typically pay to fix structural defects and other problems such as plumbing and A/C. Once you are a homeowner maintenance and repairs are your responsibility. Many people do not factor in the costs of maintaining a home. The mortgage, maintenance, property tax, and insurance all adds up in the end.
- Other priorities top homeownership. Location in relation to work and/or family may play a large role in whether you choose to rent instead of buy. The monthly expense of renting may be lower than buying in some areas of the city.