Whether you want to rent a house or buy, it depends on many factors. If the property rates are too high then you cannot simply afford it to buy a house of desired size as well as location. And if you own a house, then you have the responsibility to maintain it properly. Moreover, if you do not have to stay in a city for a long time, then it doesn’t make sense to buy a house there. Look for a suitable house to rent. On the other hand, renting a house will save you a lot of money andresponsibilities plus you can get a bigger house at desired location also. So there are many financial benefits of renting a house as opposed to buying it which are as follows:
- No Maintenance Costs or Repair Bills: When you rent a property, your landlord is responsible for all the maintenance and repair costs of the house. If some appliance has stopped working or the roof has started leaking, you are not responsible to fix it. But the homeowners have to bear all these repair and maintenance bills which can be considered a great disadvantage.
- No Real Estate Taxes: A great advantage that renters have over homeowners is that they do not have to pay real estate taxes. Real estate taxes can be a significantfinancial burden for homeowners. Property tax calculations are generally done based on the estimated property value of the house. With houses getting larger and larger, property taxes can be a huge financial burden.
- No Big Down Payment: Buying a house means you have to pay a huge amount as down payment before moving into it. But in case of renting you usually have to deposit some amount as security to the homeowner, which is very less as compared to the down payment money.
- Decreasing Property Value: Property market fluctuates a lot, which in turn affects homeowners a lot. Home value determines the amount of property taxes you pay, the amount of your mortgage and more. But renters have nothing to do with that and they are not that badly affected.
- Flexibility to Downsize: In today’s economy, many people struggle to make ends meet. By renting, citizens have the option to downgrade into a more affordable living space at the end of their lease. When you are a homeowner, it is much more difficult to break free of an expensive house because of the fees involved with buying and selling a home.
- Fixed Rent Amount: Asmentioned earlier, fluctuating property rates cannot affect renters as badly as homeowners. The rent amounts are fixed for the span of the lease agreement. You are aware of the time period till you have to pay certain amount as rent, so you are able to budget more efficiently.
- Lower Insurance Costs: While homeowners need to maintain a homeowner’s insurance policy, renters are wise to invest in a renter’s insurance policy which is much cheaper and it covers quite a lot.
So, if you feel that buying a house is a better deal than renting, then think over the above mentioned points, which would help you take a better and an informed decision.