Tuesday, April 15, 2014
When it comes to homes and lifestyles, most people prefer to own their home rather than rent a house or condo unit. Renting is often seen as a good stepping stone towards homeownership. However, some also view renting as a sensible arrangement. Here are some of the benefits that renters have over homeowners.
1. Greater flexibility
Life can be unpredictable. A job offer at a distant location may come along. You may need to take in a sick loved one in your home. What happens if you own a home that prevents you from moving to a more convenient location or owning a bigger space? These restrictions can be frustrating. Renting a home offers the flexibility needed for these scenarios. When it comes to renting, it’s easier to relocate to another location or a different type of dwelling as soon as your lease expires.
2. No down payment
Buying a home involves shelling out a down payment. The down payment usually costs a lot, which makes it difficult for most people to own a home. In order to buy a home, many potential homeowners will have to dip into their savings to cover this cost. On the other hand, renting does not require as much money, as preliminary payments before moving in only include the first month’s rent and security deposit.
3. Predictable expenses
Homes are usually bought using mortgage loans, which incur monthly mortgage installments amortized over your loan term. This may be higher or lower than your typical rental fee, depending on the floor area, location of the property, and so on. However, for the same comparable properties, rental fees are usually cheaper than mortgages. There are also some hidden costs to being a homeowner. Property taxes, repair expenses and other unpredictable costs. However, renters don’t have this problem as these costs are shouldered by the landlord. Thus, renters have more predictable monthly expenses, which in turn offer greater flexibility in terms of their finances.