Renting a home has gotten a really bad rap over the last few decades and somewhere along the way, that rap is changing. In today’s economy, the benefits of renting your home rather than buying a home are becoming more and more attractive to a large segment of the population. Why would you possibly rent a home rather than buy? Here are several reasons to consider:
1. When you rent your home, you are completely without a mortgage responsibility. Mortgage rates, and the never ending mortgage crunch is completely null and void short of the rental prices that you pay. Also, with the current terms of mortgages that can include massive increases on your monthly payment, rate increases, and balloon payments, renting becomes attractive as well. The stress factor in having a mortgage can be significant, especially with the current unemployment rates.
2. No maintenance costs. This is one of the best things about renting your home. If you need something repaired, the landlord will often either fix the problem, or repay you after it is fixed. This is a huge way to offset some common costs with buying. Also, upgrades to the properties are often payed for entirely by the landlord as it raises the value of their property.
3. The freedom of moving when you need to move. Though a lease is often required to move in, many landlords go to a month to month rental agreement after you complete the initial lease. Even if you are under a lease, this is still not as difficult to manage as a mortgage would be if your job was lost, and the only job you could find was in another state. The freedom to move when you need to is another way renting is better than owning.
4. Insurance rates are cheaper. Renter’s insurance is a fraction of the cost of home owner’s insurance in many cases, and every dollar saved is a benefit these days. Who could not use an extra 3-400 bucks?
5. You eliminate the risk of being stuck with a house you can not sell. If you plan to stay in the same house for your entire life, then this is less of an issue. However, most people will either want to move or have to move every so often. Renting makes this very easy, while buying means you have to sell the house or rent it. Both of these options are less than easy to say the least, especially these days with the economy the way it is.
Though the benefits of owning your own home are many, the benefits of renting are also just as valid. It really depends on your personal situation and resources. Renting is a wonderful way to deflect some of the costs of a mobile lifestyle. People who are at risk of losing their job, people who are often moved in their job, or people that simply can not afford the mortgages that are out there, are all examples of people that benefit from renting over buying. These are just a handful of the reasons why.
