Many people without a second thought will tell you that it is always better to have your own home than to rent. But is it true? Or, maybe, there are more advantages to renting than it seems at first?
Owning your own home certainly has its benefits, besides being the dream of many people worldwide. When you are a homeowner, there are plenty of things to do on your own at home without asking anyone’s permission.
Get an education, find a job, start a family, and buy a home. This is what most of us think our lives should look like. However, for many buying their own home means a lifetime of living in debt and fear.
People believe they have to fulfill this dream. Otherwise, it would mean they failed.
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Own Home or Rent
Some people think that renting a house doesn’t provide you the necessary security because landlords can decide to sell the property or something else. Both renting and being able to choose your own home to have advantages and disadvantages. Let’s check some benefits of renting.
1. Cost
Indeed, you need to pay a landlord the first and last month’s rent as a security deposit. However, it is incomparably less than what you would need to pay if you were to purchase your own home.
Besides a down payment, without which you shouldn’t even consider buying a home, you also need to pay property taxes, maintenance expenses, loan payments, and many others.
2. Benefits
Play here on your decision whether you rent or have your own home, it is critical to know all the options you have to guarantee that you will be able to pay rent, mortgage, or loan. The question that comes to mind is, ‘Can you claim benefits if you own your own home?’
And what’s going on with Universal Credit’s own home situation? While you are eligible for Universal Credit housing costs if you are on a low income, renting things differ in cases of ownership.
Sometimes you can get help, but you have to wait around 9 months, and if you need support with a mortgage, you can get it in the form of a loan that you need to pay back with interest.
3. Risks
The most significant risk when you have your own home is that its market value drops, and you don’t make even the money you invested in it if you decide to sell.
The only danger when renting is that you end up not being happy with the place, but if this happens, you can always look for another one.
4. Ease of Moving
Imagine that you get a job offer of your dreams but in another city? Or that you want to move closer to your partner because you are tired of long-distance? When you are renting, this is way easier than when you own home.
5. Repairs and Renovations
A lot of people think it is better to own home because you can do whatever you want in terms of renovating and decorating. Designing your own home is, undoubtedly, exciting and interesting task, whether you are starting from scratch or renovating an old house.
When you are a tenant, if anything goes wrong, the cost of reparation and maintenance is on the landlord.
6. Privacy
Being able to count on protection by privacy laws in your own home is something important for all of us. But, the law stipulates that you have almost the same rights when you are a tenant. Landlords can indeed enter the property, but they have to give you a notice and a valid reason for doing so.
7. Possibility to Downsize
Let’s say that at a particular stage of your life you bought a big dream house. Years later, for one reason or another, your financial situation changed, and you find yourself struggling to pay the bills. If you are renting, you can move to a smaller place if you realize that rent puts a significant strain on your budget.
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8. Insurance
As a homeowner, you possibly need to pay mortgage insurance each year, and this costs you more than a thousand US dollars. Tenants have to pay insurance as well, but it is way cheaper as it costs only about $20 per month.
9. Fixed Amount
Mortgage rates can fluctuate, taxes can and usually do increase, but your rent remains the same for the duration of the lease. Of course, your landlord can raise it, but if they do so, they’ll have to notify you in advance. Therefore, you have time to plan your budget for the future or relocate to a cheaper place if needed.
10. Amenities
We left the best for the end. Are you familiar with the expenses of making a pool in your own home? It’s an enormous investment. However, most of the average apartment complexes are equipped with a pool or a gym that you can use free of charge.
Conclusion
So, as you can see, there are plenty of factors in favor of renting over buying your own home. We wanted to discuss all the details, but the ultimate decision is, of course, yours. Have you already thought about whether it is better to buy or to rent? What is your opinion?
I am a passionate blogger having 10 years of experience in blogging and digital marketing. I started List Absolute in 2018 to give my passion a live platform. I have also a good hand in writing unique and quality content. Here I contribute in my free time. Thanks for reading. Let me know if I can help you get your work done in a timely manner.