Americans have always been told that homeownership is part of the American dream and that renting makes you a second-class citizen. Until recently, many people fell for that fallacy, struggling to find and afford a place to house their families.
However, times are changing and more people are taking a rent-friendly attitude than ever before. Don’t think renting is a good idea? Maybe I’ll change your mind with these 10 reasons why renting is best.
Utility Bills Will Cost Less
Sure you’ll need to pay for electricity and some other utilities when you rent, but you’ll pay less than your counterparts that own a home. Homes tend to have larger areas than rental units meaning more utilities are required. Larger spaces also use more energy to heat and cool. As a bonus, some states require landlords to cover the cost of water, sewage removal and trash removal. Sound good so far? Hang tight there’s 9 more reasons left.
You’re Not Responsible For Repairs
Remember how that pipe froze at 2am in the middle of winter? If you’re a renter you just made a phone call to the landlord and went on with your merry way, knowing that the problem would magically be fixed in the near future.
If you’re a homeowner, you probably called a few plumbers before finding one that was able to come out. Then you got hit with a super high bill for an emergency service and you spent the next 4 nights waking up at every creak thinking another pipe had burst.
You Don’t Have To Pay Property Taxes
Homeowners pay property taxes, but renters don’t. Those taxes are used to fund schools, road improvements and other county or town expenses. While renters skip the property taxes, they still get to take advantages of the schools, roads and other amenities nearby.
You’ll Have Less Debt & A Higher Net Worth
You probably have a car loan, a student loan, a credit card and a few other expenses that put you in debt. Add in a mortgage and it’ll amount to more money than you’ll make in years. Not having a mortgage can help you secure a loan or get a new credit card, since you’ll have less total debt.
As far as net worth goes, owning a home counts as an asset, but that’s only if it’s worth more than what you owe on it. Since the housing market hasn’t fully recovered, many homes are still underwater and giving people negative net worth.
You’ll Save On Homeowners Insurance
Renters insurance is less expensive than homeowners insurance because renters insurance only covers the contents of the home and not the building itself. Your landlord has to foot the bill for the homeowners insurance while you simply take advantage of the savings.
You Can Move Whenever You Want To
You’re not tied to your home when you rent. If you’re on a month to month contract then all you need give is 30 days notice and you’re out. Have noisy neighbors? Problems finding parking on your block? Has crime increased in the area? Does your job want you to relocate? Tired of the winter? Whatever the reason, renters have the freedom to up and move at the drop of a hat.
For homeowners it’s not so easy. They have to fix their home up and hire a real estate agent to prepare for the sale of their home. Then they must wait months for their home to be sold, all while dealing with strangers inspecting their homes periodically. After it’s sold, they must wait over a month for escrow to finally receive their money – that is, if there’s anything left after paying off the mortgage.
Then they have to find houses for sale and buy one – if and only if they have good credit and a good down payment. Meanwhile, they have their stuff in storage and they’re living in a hotel until their new purchase clears escrow too. After all this they finally get to move into their own home, which technically belongs to the bank for the next 30 years.
You Can Live In A Nicer Neighborhood
Perhaps you can’t afford to own a home in an upscale neighborhood or a million dollar house by the beach. But you may be able to afford renting one. Renters are able to take advantage of lower living costs to choose neighborhoods, schools and locations that better suit their desires.
You’ll Enjoy Greater Financial Freedom
When you rent, life is easier and much simpler. You just need to pay your rent on the first of the month and that’s it. For homeowners, there’s a whole host of things they concern themselves with.
- Property Values: As home prices fluctuate, homeowners can wind up underwater. But property values are not relevant to renters.
- If a homeowner buys a house with a lot of hidden problems, they could find themselves in a financial pit. For renters, repairs are not their responsibility.
- Homeowners need to concern themselves with volatile mortgage rates since they may refinance, get a home equity line of credit or buy another house. Renters need not concern themselves with interest rates.
You’ll Enjoy Greater Luxuries
In order to fetch top dollar for their properties, landlords make their properties stand out by adding amenities like air conditioning or new kitchen appliances. Renters get to take advantage of these amenities without any of the upfront costs. If you live in a nice apartment complex you may even have access to a gym and swimming pool.
Redecorating An Apartment Is Easier
Since renters usually can’t make major changes to their dwellings like painting or knocking down walls, they have to get creative with making it their own. Removable wallpaper, wall decals, throw pillows and other accessories give the space a personal touch without being permanent. Homeowners tend to make permanent changes when decorating which are much more costly.
Are you still not convinced renting is better? Let your opinion be heard in the comments section below.