What are the Benefits of Renting Verses Buying a Home?
By HealthInfo, HubPages.com
While the "American Dream" urges society toward owning a home, rental properties are not without benefits. The question of whether to rent or buy is not easy to answer because both options present unique opportunities. Below is a list of questions frequently asked by those engaged in the renting versus buying debate.
What are the Perks of Renting?
The most obvious benefit of renting over buying is that while signing a lease may be required, you are ultimately free to leave. Buying a home is a long-term commitment and you do not have the same flexibility that renting allows, should your circumstances require a change in lifestyle. Also, there is less responsibility involved with rental properties. Frequently, a landlord handles and pays for repairs, appliances are often included, and many rental properties cover lawn care and snow removal.
When Should you Rent?
Renting a home or apartment is the perfect option for someone who is not sure what the future holds. Whether you are a college student requiring temporary housing or someone following the job market, renting provides you with flexibility to fit your lifestyle. Renting gives you the option to move closer to a job rather than being limited to a certain area. Renting also relieves you of the responsibilities of maintaining a home, paying property taxes, and making monthly mortgage and homeowner's insurance payments. If you do not have the money for a down payment and do not want to deal with the stress of paying off a mortgage, renting is the simple solution.
Is Renting More Expensive in the Long Run?
In today's economy, saving money is a very real concern. It is commonly thought that renting is throwing away money. However, this need not be the case if you view renting as merely paying for a service, just as you would pay for heat or electricity. If this frame of mind doesn't work for you, a simple internet search will provide you with a number of Rent VS Buy calculators which will help you to determine the cost difference between renting and buying similarly-valued homes.
Who Benefits the Most From Renting?
While it may seem that the landlord reaps the most financial benefit from rental properties, the renter is not without financial gain. Being responsible only for rent (and utilities if they are not included), rather than more costly monthly mortgage payments combined with homeowner's insurance, the renter has the opportunity to save money. Over the course of a rental agreement, hundreds or even thousands of dollars might be saved. Thus, while renting might not result in equity, it can still result in great financial benefit.