It’s part of the so-called American Dream: the white picket fence, the private property, and the cozy little house. But what if homeownership isn’t the only way to get all of that?
Although homeownership rates are high in the U.S., research shows that over a third of Americans rent property instead of buying. The advantages of this option might be greater than you think!
If you’re on the fence about renting vs. buying, you’ll want to understand the key benefits of renting a home before you make a decision. Here are the key advantages to know.
Many of Your Costs Are Lower
When you’re renting a home, you don’t have to worry about maintenance costs. Instead, your landlord is responsible for paying when anything breaks and needs fixing, which can save you a fair amount of cash.
That’s in addition to other reduced costs, including the lack of property taxes. Moreover, if you choose to take out a renters insurance policy, you’ll find that it’s often much cheaper than a similar homeowners insurance policy.
A Lack of Long-Term Commitment
Not sure where you want to be in five years, let alone ten? If that’s the case, it’s worth remembering that one of the pros of renting is a lack of commitment. Sure, you’ll have to sign a lease—which may lock you into staying for anywhere from 12 to 24 months—but you won’t have to stick around for the long-term if something better appears on the horizon.
You’ll Have More Liquidity
On that note, it’s also a good idea to keep in mind that it’s both difficult and expensive to sell a home, especially if you change your mind about owning it. The financial and emotional costs can be grueling, not to mention the cost of commissions. Renting a home, on the other hand, allows you to cut and run without losing a ton and cash if needed.
There’s No Hefty Down Payment
The down payment for owning a home can be significant—often much more than the average person keeps in their savings. This can make it hard or even impossible to come up with the money. One of the benefits of renting, on the other hand, is that you’ll only need to pay the security deposit, which is often the equivalent of a month’s rent.
Take Advantage of the Benefits of Renting a Home
It’s safe to say that both renting and buying have their pros and cons, which is why it’s so important to weigh the decision against your own situation. However, it’s certainly worth noting that the benefits of renting a home can be significant, allowing you to lower your monthly costs, enjoy more flexibility, and avoid some of the hassles that come with owning a home.
Making major real estate decisions like this one can take time, but we’re here to help! As you consider your next steps, be sure to check out our home, property, and lifestyle guides for more insights like these.