Who hasn’t heard that you haven’t really “made it” if you don’t have a house or apartment to your name? This is marketed as the “American dream”, so it is only natural that people want to invest in a house. After all, to them it seems like this is the best thing to do – always. But today we will introduce you to some facts and reasons why renting has many benefits over buying. What we talk about here is backed up by many financial experts, not from realtors. So read and enjoy.
#1 You don’t really “buy” a home
Now, this may seem strange, but you actually aren’t buying a home. Instead, if you opt for a mortgage, you are again renting it. For 30 years even. This is a problem, which people fail to see, because real estate agents try to push you into buying a house. But if you think about it, does it matter if you are paying to a landlord or to a bank? Sure, after 30 years you will have the home to your name, but this isn’t guaranteed either, as statistics show that many people fail to pay their mortgage.
#2 All the responsibilities, none of the perks
And for those 30 years you are responsible for the good condition of your home. So instead of depending on the landlord to take all the financial risks and pay for all the repairs, you have to take that risk upon yourself. This is bad, because when you pay for rent, you pay once. But the so-called “phantom costs” start to pile up when you have a home. Taxes, repairs, general maintenance, everything lies on your shoulders now. So renting may come at a much cheaper price.
#3 Buying a home limits your career options
Statistics show that one of the main reason for lack of career growth and even unemployment may actually be buying a home. This is because you may be approached by a company on the other side of the country with double the salary you are currently having, but since you have a home, you can’t move. You are limited to career options locally, but think about that – if the local field of work you specialize in plummets, what are going to do.
#4 Renting gives you freedom overall
One thing that most people don’t mention when considering the benefits of renting is that actually renting gives you freedom. Want to try something new in another city? You can go for it. Just pack up and leave. Don’t like your current place anymore? It starts to feel too small, too big, too expensive, too inconvenient? You can change that without even bothering. Moving is now easier than ever. And if you need help, you can always depends on H2H Movers.
While buying a home may be beneficial for many people, it shouldn’t be the go-to choice of everyone. You may end up being much more happy just renting a place. And if you invest money and save up in general, you may be able to buy a home when you decide to retire. So don’t be afraid to say that you are renting – you are probably making a better financial decision anyway.