Buying a house involves assuming many responsibilities in the near and long term. It’s a big responsibility and a high-cost venture. You need to take into account financial commitments like a down payment, mortgage, home insurance, and many other things.
If you’re renting a house for the first time, it may be smarter to decide against buying a home at this point in time. Read on to find out why.
- RENTING assures you of fixed expenses
- RENTING provides easier access to everything
- RENTING requires little maintenance
- RENTING offers more flexibility
- RENTING frees you from taxes, commissions, or legal fees
Apart from the rent increase that you can expect every year, there aren’t many surprise expenses when it comes to renting. It’s easy to budget money and plan for expenses. When you know how much comes out of your pocket by the end of each month, you can allot money for expenses that aren’t housing-related and enjoy yourself.
It’s also reassuring to know that you don’t have to find money to cover unexpected repairs, like you would if you owned a home.
Homes that are listed in the rental market typically have access to nearby amenities. Or they already have some conveniently located right on the property. Landlords know the draw of amenities and use it to attract tenants. Renters benefit from this desire to maximize the property’s occupancy rate, and consequently enjoy benefits – like fitness centers, pools, and outdoor leisure areas – without additional cost.
Apartment buildings and other multi-family housing options also tend to be located in or near the city, where space is a premium but transportation, shopping, and dining are prime. More often than not, renting allows you to live closer to hubs of activity (and for less). When you rent, it’s possible to live walking distance away from work or a laidback cafe you frequently visit to break the monotony of the day.
Other than the general cleaning and upkeep that you do while living in a house, you don’t have the extensive obligations that a homeowner has to maintain the property. In most cases, your landlord is responsible for fixing anything that breaks or fails. And this extends to covering the expense for materials and labor. As a renter, your financial contribution to this matter is covered by your rent and security deposit.
If you’re not sure about which instances require you to cover the expense of repair, look over the lease agreement and understand every part of it before signing it.
This is probably one of the biggest benefits of renting a house instead of buying it. Since you are bound to the property for only a year at a time, you can quickly adapt to events or circumstances that will influence your life in the future. This can be a job opportunity or a change in your personal life.
Renting allows you to pick up and go when the occasion calls for it. You aren’t locked into a house or a location for several years to a decade because you committed to a mortgage. And while it’s possible to sell a home and buy a new one, the whole process will cost you a lot of time and money and often requires several things to happen at the same time.
With renting, you can quickly seize opportunities that a mortgage would cause you to think twice about. According to 2019 Census data cited by Moving.com, most Americans move to get better or cheaper homes, address family issues, or be closer to a new job. As a renter, moving for any of these reasons can be done with relative ease.
Jumping into homeownership requires a lot of money. More often than not, you need to hire a Realtor to help you with the property search, negotiations, and closing. Most Realtors request a commission of at least 5% of the total sale price. And it’s not uncommon for top-performing Realtors to command 12%.
Aside from a Realtor, homebuyers also have to pay for the services of a home appraiser and home inspector. An appraiser makes sure that the home for sale is priced at market rate based on age, condition, and location. An inspector checks that the home is free from hazards and structural defects.
The expenses don’t stop after you buy the home. Costs obscured by the excitement and hectic pace of closing now come to the forefront. Here are several expenses homeowners have to contend with:
- Property taxes
- Utility bills
- Home insurance
- Home maintenance and repairs
- Homeowner’s association (HOA) fees
- Furniture and decor
One source for rental communities across 7 states
You don’t have to own a home. Renting in Kentucky, Ohio, Tennessee, and the Carolinas can be a hassle-free experience with Sundance Property Management. As managers to more than 65 multi-family apartment communities, as well as 950 mobile home pads, we provide one-stop convenience for all renters.
Simply point and click on the states we operate in, and start browsing available apartments or mobile homes. With Sundance at the helm, you can be sure of exceptional service driven by the family values that have come to define our company.