You won’t have to read too many articles to find a list of property ownership benefits a mile long. Everyone knows it; financially speaking, owning a house is superior to renting one. The benefits of renting a home, however, are often overlooked. Put simply, not everyone is in the market to buy a house. After all, coming up with a down payment alone is sometimes impossible for an individual. But even those who are considering the purchase of a house in the future can find much to like about renting in the meantime. Here are some of the benefits of not owning property.
No Down Payment
To buy a house the “right way”, you are encouraged to put down 20% of the total price right up front. For a $100,000 house, that means coming up with $20,000. How many people have that kind of money in the bank? In an era when more people than ever are living paycheck to paycheck, the concept of plunking down $20,000 is as foreign as buying an island. Of course, there are ways around that down payment, but they have their own financial pitfalls. With rental homes, no down payment is required beyond perhaps the first and last month’s rent.
As anyone who owns a house can tell you, ownership is much more expensive than you might think at first. With rental homes, if the air conditioning breaks, all you have to do is call the landlord and arrange to have it repaired. It won’t cost you a dime (unless you’re in a really unfair contract). Often, lawn maintenance is paid for and taken care of by the owner as well. You don’t really have to pay for anything. When you buy a house, you pay for everything. If the air conditioner breaks, you have to come up with the money to have it fixed. You have to take care of the lawn. It’s a whole different level of responsibility and it’s one many aren’t willing to take on.
If you’re the type of person who gets cabin fever staying in the same place for a long time, owning a house may not be for you. With rental homes, you can leave whenever you want. Yes, there may be a lease of some substance, but you can often break it with only minimal financial damage. Even if you don’t want to do that, you’ll have to wait no longer than 11 months to move, and that’s a worst case scenario. If you own the place, you may not be able to get out until you find a buyer, which is easier said than done. For the person flight of foot, renting simply makes more sense.