The Perks of Renting!
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Do you think you’re not quite ready financially to take the homeownership plunge?
Are you allergic to the idea of settling down in one place?
Have you been wondering whether you should rent a house instead of owning it?
If so, well, here are some perks of renting to ease your mind!
1) No long-term commitment
2) Renting is more affordable
3) No maintenance or repair bills
4) No financial risks
5) Insurance costs
1) No long-term commitment
Staying in one place for too long isn’t your type? Are you more of a nomad?
Then, renting might be ideal for you.
Why? Because, when you feel the urge to move on, all you have to do is to give your landlord notice (read your lease agreement carefully to know the exact number of days of notice you need to give though).
When you own a place and you want to move out, you either have to go through the sale process or decide to rent. Both options can be quite a hassle.
2) Renting is more affordable
Some people might say renting is just throwing away money.
Homeowners might argue that the rent you pay each month is the same as some monthly mortgage payments.
While that may be true, you also have to consider that there are added costs associated with buying such as realtor fees, closing costs, property/land transfer taxes, utilities and the initial down payment (5-20%). In terms of maintenance, it’s also obviously more expensive to own than to rent…which brings us to the next point.
3) No maintenance or repair bills
As a tenant, the responsibility for any maintenance and repair costs is on your landlord.
When you own a place, you’re responsible for these costs. Things like fixing a leaky roof, a burst pipe or replacing a faulty appliance cost a lot of money, and are also things that can’t necessarily be procrastinated.
Owning a place comes with maintenance !
4) No financial risks
When you purchase a home, it can be very difficult to understand if you’re getting it at a fair price and if its value will increase overtime. Although owning a property is an important and valuable asset, it’s important to note that investing always comes with a risk. Hence, you need to evaluate and understand your risk tolerance.
On the other end, renting doesn’t come with such a risk!
5) Insurance costs
When you’re a tenant, one of the most important variables when it’s time to determine your insurance cost, is the quantity and value of your belongings, because, in the end, this is mainly what your insurance covers.
Which is why tenant insurance is very affordable. We’re talking about an average monthly cost between $12 to $30!
In the end, there really isn’t a right or wrong answer to the rent vs. buy discussion. Just go with your guts and with what better fits your needs and way of life!
And either way, once you move in, do not forget to cover your belongings !
Find our guide for tenant insurance here!