Owning a home may be a lifelong goal for many, but that doesn’t mean it’s for everyone. Renting does have its advantages too and for some people renting might make more sense for their financial circumstances. Below, we’ve listed 5 of the main advantages of renting instead of buying a home.
1) No Maintenance Costs or Repair Bills
One of the benefits of renting a home is that there are no maintenance costs or repair bills. This means that when you rent a property, your landlord assumes full responsibility for all maintenance. Homeowners, on the other hand, are responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task (and whether multiple jobs pop up at the same time), it can get quite pricey.
2) No Down Payment
Another area where renters have a better financial deal is the up-front cost. Renters generally have to pay a security deposit (usually equal to one month’s rent). This deposit is theoretically returned to them when they move out, provided they haven’t damaged the rental property.
When purchasing a home with a mortgage, you’re required to have a sizable down payment. Of course, that deposit results in having equity in the home, which only increases as the mortgage is gradually paid off. And once you own a home free and clear, you have a valuable investment that renters never attain.
3) Flexibility
First and foremost, renting offers flexibility that buying simply can’t match. Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive city may be out of reach for most home buyers, but it is entirely possible for renters. And if you want to move jobs, instead of making do with a difficult new commute, you can just move to a new pad.
4) Few Concerns About Decreasing Property Value
Property values go up and down. While this may affect homeowners in a big way, it affects renters substantially less, if at all.
5) Budgeting
The amount you pay for rent is fixed for the span of the lease agreement. This means that renters know exactly what’s coming out of their bank account each month, and they can budget their disposable income to suit the rest of their lifestyle. The same applies to homeowners with fixed-rate mortgages, which also allow for efficient budgeting. But other mortgages can fluctuate, often resulting in rising mortgage payments due to higher interest charges.
If you need help with your next rental, we’d be delighted to help. Please call our Lettings Valuer on 01282 417775
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