If you’re in the process of deciding whether to rent or buy a house, you might be interested to learn that deferring home ownership could be advantageous for your budget. Read on for the benefits of being a renting resident.
Instantly improve your standard of living
In many cities, you can rent a home for a lot less than it would cost to buy it, allowing you to achieve a lifestyle as a renter that you couldn’t afford as a homeowner. As a resident, you might be able to live within walking distance of work or school or in an area of town that you thought was out of your reach. Ask yourself if it’s as important to have your name on the title as it is to live in a place that you love — and possibly for less money.
Forget maintenance worries
As a renter, you won’t have to pay for maintenance and major repairs, making your rental home significantly more affordable with someone else as the owner. Potential major repair expenses, such as for the roof, gutters, water-proofing and tree removal, will all be taken care of by someone else, while you reap the benefits.
Get utilities included
For some properties, landlords include utilities, such as water, electricity, gas, even Wi-Fi and cable, in the cost of the rent. If your lease includes utilities, you’ll not only save money, but will enjoy the convenience of having someone else pay those bills for you.
Access to free amenities
Many condo, apartment and townhouse communities include all kinds of amenities, such as a gym, pool, community center or meeting space. Paying for these could cost hundreds of dollars if you had to pay out of your own pocket, further increasing your savings as a renter whose access is included.
Stabilize your budget
As a renter, you won’t have to worry about unexpected repairs (often big ones), emergency maintenance such as downed or dead trees, and annual expenses, such as property taxes. Knowing that you won’t have potentially catastrophic housing-related costs to save for or otherwise anticipate means that you can more accurately create and stick to a budget.
Invest your down payment
Depending on your financing plan, buying a house usually requires a significant down payment. Especially if you can’t predict how long you would stay in a purchased home, it might make better sense to invest the lump sum you’ve set aside for a down payment or invest some of the significant monthly savings you’ll have as a renter in something else.
The debate over renting versus owning has been a long one, and the winner flip-flops depending on where you are in the country, in your lifestyle or in your financial situation. Consider all the benefits that renting offers, and see if it might be the best bet for you, too.