Buying a home is perhaps one of the biggest investments an individual will ever make in life and for some people owning one is a mark of financial status. But this is not appealing to everyone. In fact, there are benefits of not investing in a home and renting one instead.
Here are some reasons renting a house can be better than investing in one:
Renting costs less than buying a house.
Imagine owning a house on mortgage. You have to spend for mortgage payments for years and if luck runs out, you can even face foreclosure. If you settle on a rented home, however, your major expenses, aside from utility bills, will only be your monthly rent. As for maintenance costs, your landlord will be mostly be responsible for this. Moreover, you do not have to pay for property taxes. Also, some experts say that houses are not really assets unless you earn from your home, that is, if you make it rental property instead.
It provides opportunities for investment.
If you decide to buy a house, you have to shell out for down payment and for mortgage payments. Although you will own the house you live in after so many years, you might earn more if you rent and use the extra money for investments.
Renting does not tie you down in one place.
Another good thing about renting a house is the freedom to move from one place to another. This is practical especially if the nature of your job requires you to travel. Why should you stress yourself looking for a house sitter each time you will be gone for months? And if you are a person who is planning to travel or be a digital nomad, renting a home is an economical thing to do.
Owning a home is not bad at all just that in some situations, renting one is the smarter thing to do.