Reasons why Renting a House May Be better than Owning
When it comes to buying vs. renting, there is always a very hot debate on which among the two options make the most financial sense. Being a homeowner and also renting a premise for https://wpbtowingservice.com/ business, I can relate to this debate. Recent changes in tax laws have made owning a home not very advantageous due to a couple of reasons we are going to look at in this guide.
A common argument most people against renting have is that renting only makes you pay rent to the landlord instead of working to build equity in a home that is yours. However, there are many other advantageous reasons why renting may be more enticing and compelling. Let us look at the reasons why renting may be the best option for you.
No Maintenance Costs
Big advantage renters have over homeowners is that they do not have to suffer the responsibilities of maintenance costs. As a renter, the landlord must take care of all the repairs and maintenance. If an appliance stops working, it is not your responsibility to dig deep into your pockets to make it work. On the other hand, homeowners are responsible for all repairs, renovations, and maintenance of their premises.
Access to Amenities
Another key advantage to renting a house as compared to owning is having access to many amenities that would otherwise be enormously expensive if you were a property owner. While renting a home, you can have access to many luxuries such as an in-ground pool, fitness centers among others without having to pay for any additional charges as a tenant. If a homeowners want to match these amenities, they will be required to dig deep in their pockets.
No Big Down Payment
Another area renters have a significant advantage over the financial obligations associated with renting. While renting, you don’t need to have the financial muscles as compared to want to be required for homeowners. Rental property doesn’t attract a substantial down payment. Though the amount required varies from one apartment or property to the next, it doesn’t have to be that huge. In most places, landlords require a rental deposit that is equal to the amount of one month’s rent. On the other hand, a down payment for acquiring a house can be anywhere about 20 percent of the value of the property.
Decreasing Property Value
Property value will always go up and down depending with the market. While this fluctuation affects many homeowners big time, it affects renters to their advantage. The cost of a home determines the amount of property taxes you pay as well as the amount of your mortgage. When the housing market gets rocky, renters are not adversely affected by the fluctuations. Another advantage renters have the flexibility to downsize. In today’s economy, many people are struggling to have a decent living. There are a lot of uncertainties arising from the recession, retrenchment among others. When your income streams become tough, you can always take a rental property with lesser financial obligations.