Controversy surrounds the topic of renting vs. owning. Some people claim that buying is more cost-effective, but in reality -It’s the opposite. Here are six reasons why:
No Throwing Away Thousands Of Dollars On Taxes
A major benefit that renters have is that they don’t have to pay into land or school taxes every year. Homeowners usually dread receiving their bill for taxes in the mail. Taxes are a huge financial burden that renters don’t have to dwell on.
Something Broke? No Worries
If something broke that wasn’t your fault, you’re not liable to fix it as a tenant. Whether you discover something wrong with the plumbing or even something major (like mold), your landlord is the one who is reliable for repair. Not to mention, if renovation needs to be done in order to make the place safer, you don’t have to worry about those costs either.
Don’t Worry About A Large Down Payment
When looking for a home to purchase, you would need to have a large lump sum of cash to use as a down payment. Most loans require homeowners to have that large down payment, and it even helps bring down the monthly mortgage payment.
When you rent an apartment, you can forget about the stress of needing all that cash. All you need upfront, usually, is first and last months rent and a security deposit. A down payment would be much more than that.
Decrease In Property Value
As a homeowner, property value can either increase or decrease. If you were to sell your home, you are taking a chance that your property value could be way less than you anticipated and you would actually be out money. As a renter, you don’t have to worry about that.
Less Insurance Costs
When you own a home you need homeowners insurance, which can become quite costly depending on the square footage of your home. As a tenant, you only need renter’s insurance, which is significantly lower in price.
Lower Utility Costs
Depending on the square footage of your home, you would likely spend a hefty amount of money on not only electricity but heat as well. If you rent, the costs of utilities are usually cheaper, depending where you live. Some landlords even pay for utilities. Setting up utilities as a renter is also relatively easy, especially when you know the ins and outs.
The debate of renting vs. buying ultimately boils down to what’s best for each person. If you’re looking to keep more money in your wallet and avoid down payments, repairs, maintenance, and all the other headaches owning a home can bring, renting is the way to go.
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from Apartment Living Blog https://www.forrent.com/blog/tips/renting-vs-owning/