It is irrefutable that purchasing a home is a better idea than renting an apartment. However, owning a home can be a significant investment for some individuals. Nowadays, most of the people are opting to rent an apartment, room, or house simply because they can’t afford to purchase their own home. Amazingly, there are numerous benefits to renting an apartment. Some of the benefits of renting include:
You don’t need a huge capital outlay
In most cases, the landlord of a house normally requests for one-month utility deposit and two months’ rent deposit before signing the contract and property inventories. This amount is fairly small when compared to the initial capital needed when purchasing a home. When you purchase a house, you’ll have to pay some down payment. In general, the down payment is usually 20 to 30 per cent of the sale price of the property.
Besides, a home buyer should prepare enough money to pay the closing cost which is an expense incurred by sellers and buyers in finalising the agreement such as credit report fees, document preparation fees, title insurance, property survey, and many others (visit Hive).
Your budget will be more predictable
Generally, home ownership lacks predictability. That’s because you don’t know when the foundation of your house will crack, when the boiler will break down, or when termites will invade your home. All these emergencies will need money to fix, but when you rent a room, you pay a fixed amount each month. In spite of the repairs required, you still pay the set amount.
You will enjoy greater flexibility
When you rent a house, you are not locked into a single location in case of changes in your career preferences, or if the economy or job market shifts. Again, when you are starting in marriage, it might be challenging to know where you’ll settle long term. Renting allows you to move when needed and as needed. You may not be planning to relocate, but as a renter, this automatically becomes a more practical solution.
You will have no maintenance costs
It’s the responsibility of your landlord to repair anything that gets spoiled or breaks down in the house. You will not have any burden of the costs of repair and maintenance on you. That is completely different with homeowners where you must spend your cash in repairing the refrigerator, television, or heater if they stop working.
You will have no property taxes
One of the obvious benefits that renters have over most homeowners is that they don’t have to pay any real estate taxes. Generally, real estate taxes vary from one state to another and can be a hefty burden for many homeowners. Although property tax computations can be complicated, they are typically determined according to the estimated value of your home and property inventories. With homes getting bigger and bigger, real estate taxes can be a huge financial burden.
While owning your home might be beneficial over a long time, for most people renting a house is the better option. As we have seen in the benefits discussed above, renting can save you a substantial amount of money. The decision of whether to buy your house or rent a house is generally a personal one. However, before making a rushed decision, review all the details involved, and make the best financial decision that will work for you and the members of your family.