The Benefits of Renting Forever, 2007

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The Benefits of Renting Forever and Not Buying a Home

By Matthew Paulson, Yahoo! Contributor Network, 1/18/2007

Takeaways

  • Not owning a home is a very contrarian line of thinking.
  • Renting as a way of life saves you a lot of money on homeowners insurance, utilities, and the like.
  • Renting keeps you flexible for moving for new jobs
When people challenge conventional wisdom, often times they are immediately discounted and people go on with believing their conventional wisdom. However every now and then there is a major shakeup where conventional wisdom is thrown out the window and a new line of logic enters the hearts and minds of Americans. Most people in this country believing that renting an apartment or home forever is not a good idea because buying a home can be a rather great investment, but there are some good arguments for renting as a way of life.First and foremost, renting is not throwing money away. Renting is paying for a service (a place to live), just as you are paying money for utilities and the like. Renting really keeps you flexible in your lifestyle. When you are renting, generally you can pickup and move almost whenever you want to wherever you want with out much of an issue. You might face a small early termination fee if you have a lease, but you can get out of it much quicker than selling a home which can take a period of months! If you are looking for a job, you're not limited by how close the job is to your home because you can just move to an apartment without a big deal. Often times your new job will give you moving expenses!Another benefit of renting is that someone else does the repairs! When something goes wrong in your home, you have to fix it! But when something goes wrong in your apartment, all you have to do is give a call to the apartment manager who has to take care of! When you rent you get free appliances with no cost of replacement, and that's a great deal!More often than not owning a home can be much more expensive than you think. When you purchase a home, you have to pay all sorts of fees, such as property taxes, fees for homeowners associations, all sorts of utilities that you have never had to pay for before, expensive homeowners insurance and the like. Now that's throwing money away! Renter's insurance is actually much cheaper than you would homeowners insurance (it's about 80-90% cheaper!).The real estate market doesn't look that great right now, and most analyst agree that over the next decade or so rates will go up and the housing market will slow after the great housing boom which occurred in the last few years. If you agree with analyst, this might be a good time to stay renting for a while, especially if you plan on moving in the next five years.

More resources

  • http://en.wikipedia.org/wiki/Apartment

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