When it comes to the decision of whether to rent versus buy a home, the answer may not be all that clear-cut. Some people just aren’t ready for the major responsibility that comes with owning a home for a variety of reasons, especially when the financial aspects don’t always favor either renting or buying. However, it may be noted that renting a home may offer more flexibility and be less expensive.
Home ownership ranks as one of the top goals to attain during adulthood, along with a successful career and happy family. Buying does often make more sense financially but lately, younger generations are starting to challenge the idea, realizing that buying isn’t always better than renting and here’s why.
Ease of Mobility
The old rule of settling down young and working for a single employer with a pension is long gone. The fluid nature of today’s work world may in part explain why renting is on a rise. What happens if your dream job comes calling but it’s on the other side of the country and you’re literally stuck with a house?! Now What?
It’s more important now, more than ever to be mobile for your career. When young, buying a home can tie you down to a location before you’re ready. If you get your ideal job offer in a different area, you can easily break your lease or sublet your apartment if you’re renting. It’s much more difficult to sell a home, find a new place to live and start a new job within a short period of time.
Flexibility to Downsize
In today’s economy, many people struggle to make ends meet. Life is hard and VERY EXPENSIVE to say the least, no thanks to inflation. By renting, you have the option to downgrade into a more affordable living space, that fits your budget. When you’re a homeowner, it’s much more difficult to break free of an expensive house because of the fees involved with buying and selling a home.
Fixed Rent Amount
Rent amounts are fixed for the duration of tenancy. While landlords are able to raise the rent with notice, you can budget more efficiently since you know the amount of rent you are required to pay. Meanwhile, mortgages that have adjustable rates can vary while property taxes can be increased.
It’s Less Expensive
Some financial experts may argue that renting is far more expensive than buying. Others stand firm that renting is a much cheaper decision and only those who are committed home buyers should consider getting a mortgage. The truth is somewhere in the middle. Whether or not renting is cheaper depends on where you live or want to live, the housing market and rental prices.
NB: Remember that it usually takes at least 5 years to break even on your mortgage. This is because you’ll be paying more interest during the first few years.
How Do You Decide What’s Right for You?
Owning a home might be beneficial for homeowners over the long run. However, for those who are looking to avoid the hassles of homeownership, the costs of upkeep, property tax rates, renting might be a better option. Of course, it depends on each person’s lifestyle, financial situation, and your plans for the future when deciding whether to rent or buy your home.
No matter what the statistics say, always think about whether you’re ready to give up the ease of renting. If you’re older, are getting married or have children, home ownership seems like the more obvious choice, if you’re ready for the burdens of home ownership.
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