With the economy today in a state of uncertainty, many people are looking for housing options. One question they may be asking themselves is, "What are the pros and cons of renting versus buying a home?" Normally, people believe that buying a home is always the best choice when possible. However, there are many circumstances under which you should consider renting instead of buying a home.
Renting versus buying a home
Buying a home often requires a large down payment. If you cannot make this comfortably, then renting is a better option.
While you will not own any property that you rent, you are still exchanging money for a place to live, and if you choose to buy, you will not own the property for many years if you have a mortgage. So, renting is not a waste in this regard.
The process of buying and maintaining a home can be very expensive. If you do not have extra money saved up then it probably makes more sense for you to rent a home rather than purchase one.
The best part about renting is the freedom and flexibility that it can offer many families who do not have the type of job that allows for them to afford purchasing a home. With the recent economic downturn providing less stable jobs, many families are ending up having to move to find work, in which renting is a more convenient option.
Renting can save you both money and time when dealing with repairs and maintenance to the property because as a homeowner the landlord is usually responsible for these costs to maintain.
Renting can make pursuing life dreams and goals such as traveling easier because the monthly payments and costs are generally cheaper than owning. The lease payment may also be gone completely if you leave for another area once your rental agreement expires.
In today’s economy, buying a home does not necessarily promise financial gain, and depending on the market, you could actually end up losing a large portion of capital from your purchased home. Renting a home removes these risks completely and allows for you to use any extra money to invest in areas where you could see a significant financial gain.
Sometimes the down payment to purchase a house is too much to afford, in which case renting would be a better option with much less of a down payment if any at all.
Paying monthly for a rent payment is still a way to improve your credit (if your payments are timely), and can lead to you being able to get approved for a home to own in the future. There are many situations in which renting a house can be more affordable and financially beneficial than purchasing a home.