5 Reasons Why More People Are Choosing Renting Over Buying
More and more people are choosing to rent over buying, and homeowners are flabbergasted. ‘Why would they rent?!’ they cry, pale-knuckles clenching their mortgage agreements, ‘it’s simply throwing money down the drain!’.
This is a common misconception about renting. Can you really consider something that is putting a roof over your head ‘money down the drain’?
There are very good reasons people are choosing to rent and not buy, and here, we’re going to discuss 5 of them. If you have a mortgage, you might want to look away now…
- There’s Far More Flexibility
There is so much more flexibility with renting. This means that if you’re a person who may experience a career change or like to travel, renting a property is far smarter than buying.
A change in circumstances or family could also mean needing to move, whether that’s downsizing or finding a bigger place. You can easily do that when you rent.
Buying a house usually requires staying in it for 5 years to avoid taking any financial hits.
Then you have the challenge of selling the home on top of that. There’s no need for you to worry about selling or marketing the property when you rent, so you have much more time and much less stress!
- It Could Actually Be Cheaper In The Long Run
Ok so, people think renting is just throwing away money, when actually it could be the cheapest, smartest option. There’s no down payment, which take months to years to save up. There’s a security deposit, though, and this is given back at the end of the lease. You don’t have to worry about homeowners insurance, property taxes, loan payments and their associated interests, and, in some cases utilities, appliances, and maintenance associated with the house either. You have so much less to pay for and think about.
- There Are More Lucrative Investments You Can Focus On
Lots of people think that buying a home is an investment, and that it will secure their future, or their children’s future. Actually, there are far better investments you can focus your money on, even if you don’t understand them right now. Things like stocks and bitcoin could be better worth your investments than a property.
Why? Because homes depreciate over time, but these kinds of investments do not. In fact, some people claim that you can’t call a home an investment, or an asset, as it takes up so much of your money and depreciates over time. This makes it quite the opposite when you think about it!
Renting means you will be able to spread your funds across various investments and diversify a portfolio, which is essential for long term wealth and taking care of your cash. Even the smartest investors know that it’s not a good idea to tie all of their finances up into one single purchase. Fair enough if you have the money to outright buy a home and all of the associated costs, but you should think of it more as a place you’re going to live rather than a great investment.
Houses can even depreciate over time due to things like due to factors like crime, unemployment rates, and new housing developments. As a renter, you won’t need to worry about those things. You won’t even need to worry about what the market is doing!
- Millenials Want More Out Of Life
Millenials are now buying fewer homes than ever before. There are a few reasons for this. Many of them claim that they simply cannot afford all of the associated costs with buying. Others, say that they prefer renting because they also want to enjoy the finer things in life, like travel and dining out. They want a better lifestyle, over simply being able to say ‘I own my own home’.
They are looking at places like https://www.glamourapartments.com/real-estate/long-term-rentals when they want to live and travel in another country, and many of them are saying it’s the best thing they have ever done.
- More Time To Do The Things You Love
You can’t deny that renting means you have more free time than buying. A landlord takes care of general maintenance and repairs (unless they are caused by you, of course), and you can’t remodel even if you wanted to, when many homeowners become tempted to do this at some stage. This means you find yourself with both spare money and spare time, and you can enjoy the things you love for longer.