5 Reasons Why Renting is Better Than Buying
Published on: Saturday, November 21st, 2015
With marriage around the corner I seriously considered buying my first place. After talking this idea over with Hannah, we both decided that it would be best if we rented and purchased a place later down the road.
So, this got me thinking, what are the advantages of renting over buying? I’m sure you can do a simple Google search and find your answer but I’m going to share with you a couple reasons that really stick out to me, especially in this stage of my life.
1- No maintenance or hidden costs
This is a real beauty of renting. Anything that goes wrong is on the landlord’s shoulders. Talk about a big relief! It costs some big coin to fix things like broken refrigerators, heating and air conditioning units, and plumbing problems. When you rent, all you have to do is make a call and hopefully it gets fixed stat. I’ll be honest, getting married is expensive. I wouldn’t want to add any additional expenses to my life! I’d rather settle down with Hannah and get our finances in order before we made a move on a condo or home purchase.
2- Flexibility for employment
We all know that the economy is still in shambles and could get worse at any moment. If I had owned a home in Washington, I wouldn’t have been able to start my career down in San Diego! When you rent, you can move around the country for employment opportunities. This is assuming that your lease is up. But heck, a 12 month lease is better than a 30 year mortgage! I can’t tell you how many of my friends have had to move around the country to find a job. Don’t let home ownership slow down your career growth.
3- Fancier living and added perks
When you rent, you can typically live somewhere a little nicer than if you purchased. We all have had dreams of living on the ocean or way high up in a high rise building. If you rent, you can pursue these dreams and not break your bank. I’m picky about marble countertops and updated bathrooms, so renting makes much more sense to be because it’s much more affordable when you don’t have a mortgage!
Another benefit is perks. Many complexes that rent out their unit have community pools, BBQ areas, and even a gym. What house has a pool or a home gym? You’d have a shell out some cash to get these types of perks. Plus, with a gym within your complex, you can say goodbye to gym memberships! Perks often times equal cost savings. It’s something to think about when you’re deciding between renting and buying your next place.
4- Consistent budget
Don’t you just hate unexpected expenses? I know I do! When you rent, you will never have to worry about unexpected expenses like a broken shelve in the kitchen. The landlord is required to fix any issues. Not only are that but there hidden costs like HOA fees and taxes. Let the landlord take care of it and you can go on living a worry free tenant life. This also helps with knowing the exact amount of money you will owe your landlord at the end of the month. It creates an environment where you can manage your money efficiently and know exactly how money is being spent.
5- Insurance is cheaper!
This is a little known fact but renter’s insurance is cheaper than home owner’s insurance! I didn’t know this either until I did a little research. Home owner’s insurance is sometimes 15 times the price of renter’s insurance. This can result in hundreds of dollars every year. I’ll take these savings any day!
In summary, as you can see, there are many reasons why renting is better than buying. Now, if we were talking about investing in real estate for cash flow purposes, then this post would be completely difference. But for the renting vs. owning argument, I’m still a believer in that renting is the way to go for most people!