Understanding the Benefits of Renting vs Buying a Home

If you are on the hunt for a new place to live then you may be wondering if it is better to buy or rent your new home. There are pros and cons to both of these options that extend beyond just the associated costs. If you need to know more about the benefits of renting vs buying or finding apartments for rent then look no further. The article below will give you all the information to help you make an informed decision on which is best for you.

Access To Amenities

One of the benefits of renting vs buying is that you have access to all amenities that would otherwise cost you a small fortune to have installed in your own home. This can include a local shop, an in-ground swimming pool, and an on-site fitness center. Many people own a home that can only dream of having access to all these amazing things. You will get access to these at no extra cost to yourself, and it won’t be a secret fee that is sprung on you while living there.

No Maintenance Costs

One of the most cost-effective benefits of renting is that you will never have to pay for any repairs or maintenance on things in your home. This is all covered by the person that owns the house, commonly known as your landlord. They will have insurance that covers them in case of anything major that breaks down, the boiler for instance. The boiler is a huge cost that homeowners have to cover themselves if it breaks down, sometimes costing 1000s of dollars. If something in your home stops working then all you need to do is contact your landlord or real estate agent to get it fixed.

Flexibility

Another benefit of renting your home is that you have total flexibility to choose where you want to live. Buyers can’t do this as they need to stick to places that they can afford. This means as a renter you are far more able to find a place to live in an expensive state. Take Las Vegas for instance, if you are looking to move there then you are much more likely to find apartments for rent than those looking to buy a home for a reasonable price. While the cost of rent can be expensive, it will be nowhere near the cost of mortgage repayment.

Decreasing Property Value

One problem you can run into when you own a house is a decrease in your property price. This means homeowners are at risk of losing money when the time comes to sell the house. As a renter, you won’t have this trouble as it makes no difference to you how the property market is going. The cost of rent will only differ slightly depending on the type of property and the area you are living in.

Fixed Rent

When you rent a property rather than buying it you know you are safe and stable with the amount of rent you are expected to pay. This will be fixed for the duration of your lease agreement. This means, if your lease is for 12 months then you will pay that amount for a year and then it may go up at the end of this period. However, landlords have to give you around a month’s notice before they change the rent amount. This gives you more time to prepare and budget for any changes in your expenses.

No Down Payment Needed

Other benefits of renting vs buying include no down payment needing to be paid when you sign the lease. When you rent it will sometimes be necessary to put down a security deposit, which is usually equal to the cost of one month’s rent. Those buying a home need a minimum of around 20% of the property value, this can be extortionate. Another great thing about renting is that if you look after the property you’re living in then you will get this deposit back.

Lower Insurance Costs

Finally, when you rent your home you will need to purchase a renter’s insurance policy. The cost of this is usually a couple of hundred dollars compared to around $1,250 which it costs homeowners for their insurance. The renter’s policy is cheaper as it just covers the inside of the property and the renter’s furniture. Whereas homeowner insurance covers everything from the inside to the exterior and everything in between.

We hope you found this article regarding renting vs owning helpful and that it gave you all the necessary information you needed. Remember, something that works for others may not work for you so you must weigh up all the options.