Owning a home isn’t the best move for everyone. For those weighing renting vs. buying, here are a few reasons why renting can be the better choice.
1. You want maximum flexibility
With renting comes the flexibility to stay put for a few months or years without paying much more than a monthly payment. If your job requires you to move every few years or if you’re unsure how long you’ll be in one place, it can make much more sense to rent. The upfront costs of a home purchase can set you back financially if you move too soon after buying.
2. Buying is out of reach financially
The price tag on a home can be discouraging, especially if space is important. Often it is hard to afford to buy a home in the area that you want with the similar size and space as the apartment you rent.
3. You want to avoid maintenance and other added costs
When you rent a 1 bedroom apartment, your landlord has to fix the problems, but once you’re an owner, maintenance and repairs are your responsibility. Upkeep is one of the more surprising things one has to invest time and money into when becoming a homeowner.
Many do not factor in the costs of maintaining a home. Maintenance, upgrades, property tax, insurance all add up to additional costs per month beyond the mortgage.
4. Other priorities top homeownership
Location, particularly in relation to work or family, might play a large role in whether you choose to rent instead of buy.
About 42% of renters believe their housing situation lets them live in a more convenient location. Among millennials, most prefer city living, and two-thirds of these young adults are renters.