Not sure whether you want to own or rent a new humble abode? Well, take this into consideration: a staggering number of Americans are turning toward renting instead of buying. More Americans, in fact, than in the previous half a century.
You’ve likely heard that buying is always best if you have the means. Is it true, though? What are the reasons to rent, even if you do have the means to buy?
Turns out, there are plenty. Read on for a definitive guide to the many benefits of renting (and, ultimately, to learn why renting is better).
Buying a Home-The Best “Investment?”
You may be thinking, “why rent when you can build equity in a home?” Buying a house is, after all, often described as “a great investment.”
The reality? Buying a home isn’t an investment. Not in the true sense of the word, anyway.
An investment is defined as an “outlay of money for income or profit.” That means that, in order for something to qualify as an investment, it’s expected that your invested money will earn you back a surplus of money.
Here’s the thing about buying a home: that “investment” is subject to one of the most famously volatile markets you could buy in. We all remember the housing market crash of 2008.
Even if it’s a buyer’s market today, the housing market operates on a series of crests and troughs. When you buy a home, you accept that the market changes drastically enough to actually alter your home’s value significantly.
That means the money you’ve already sunk into your home changes its value, too.
There are certainly times when buying is a sound financial decision-but is it an investment? Not really. And if it is, it’s a risky one. Renting is the ticket when it comes to minimizing your risk.
The Many Benefits of Renting
Now you may be asking yourself, thanks to a volatile housing market, “is it better to rent or buy?” That depends on your specific financial circumstances. Renting definitely has tons of benefits to tout that buying outright doesn’t, though.
Save on Taxes and Insurance
Think about tax season every year. How grateful are you when you see that return light up your bank account?
It’s a different experience for homeowners. As a renter, you don’t have to worry about property taxes and expensive homeowner’s insurance.
Enjoy your tax return without having to shell out big time when it comes to tax time.
Renting is More Accessible
Where are you in your career and personal life? Are you settled down and looking to stay in one place for a while? Or does your job constantly change?
Your lifestyle should play a big role in the decision to buy or rent.
If you can’t commit to staying in the same location for the next 3 to 6 years, you probably shouldn’t buy a home.
What that means for renters: your housing is more moveable and accessible than ever. It’s a big decision to stay locked into one place for that amount of time. If you’re not there yet, renting is the better choice for you.
Skip the Maintenance Costs
Avoiding maintenance costs are perhaps the biggest benefit of renting. Big, unexpected expenses are no fun to encounter as a homeowner. Think roof leaks, appliance malfunctions, and floods.
Even the little things can add up. It’s a headache to have to constantly worry about home upkeep and repair. Isn’t it so much easier to just phone your landlord when an issue pops up?
One estimate states that homeowners should budget 1 percent of their home’s value for maintenance in one year. Do you have an extra few grand to spend on repairs?
Get the Most Out of Your Rental
Here’s the real cherry on top when it comes to renting instead of buying: the many amenities you’ll have access to as a renter. Apartment complexes offer tons of awesome amenities that you’d pay an arm and a leg for as a homeowner.
Homeowners have to pay out of pocket for their gym memberships, pool memberships, venues to host parties in, tennis courts, storage units, laundry machines-the list goes on and on.
The best apartment complexes will offer these, and usually more. Some have covered parking and security people patrolling the property, too.
Security is another important amenity that apartment complexes offer that homeowning doesn’t. Security systems can be expensive, and many apartment units come pre-equipped with great security systems-not to mention many are already within gated communities.
Lower Credit Is OK
Let’s face it: no one’s credit is quite as great as they’d like it to be, right?
Most landlords and apartment complexes will require a credit check, but their requirements will be a lot more lenient than mortgage lenders.
Typically, landlords and apartment complexes rent more based on your credit history than your credit score. That means that, even if your number is lower than you’d like, there’s still hope for a great rental in your future.
Mortgage lenders, on the other hand, have much higher requirements. The good ones will often require credit scores of 650-700 for great rates. Even small dings on your credit history can affect your eligibility for great interest rates with a mortgage lender.
If you’re still building your credit, renting is the way to go. It’s less of a commitment, and a lot more likely you’ll be able to get into your new pad without any hassle.
Rent in Long Beach, CA
If buying a house were as great of an investment as they say it is, the scales might be tipped in that direction. The reality, though? The reality is that renting offers way more flexibility, poses less of a financial risk, and even offers additional perks that homeowning doesn’t.
Have additional questions about the benefits of renting, or want to get into a new humble abode in Long Beach ASAP? Get in touch! Grand Terrace offers all the benefits of renting that you read about here and more!