The American dream is for all citizens to own a home. However, buying a house doesn’t mean life gets better magically. There are merits and demerits to homeownership. These demerits are reasons why renting may be better.
Here are seven reasons why you should rent a home:
1. No Mortgage Debt
A higher percentage of homeowners opt for a mortgage to own a house. Only a handful of them buys their home with their money. The traditional mortgage payment is a 30-year debt, which is a long time to be indebted for. For renters, the only thing they have to worry about is the due day for their next rent payment.
2. No Down Payment
Before buying a house, you need a 20% down payment. The percentage may look small, but when a lump sum is involved, it is a heavy amount. Although there are programs that accept 10% as a down payment, that is still a hefty sum. What renters worry about is the upfront security deposit.
3. No Maintenance or Repair Cost
As an apartment renter, you have no business fixing broken pipes, leaking roofs, clogged drain, or pest problem. That’s for the landlord to worry about. On the other hand, homeowners have no choice but to spend money on these things. Their homeowners insurance will not cover such costs.
4. Indirect Property Tax
When you own a house, you are forced to pay property tax. Often, mortgage payment and property tax are rolled into one and paid at once. Tenants don’t have to worry about all of that. They pay their property tax indirectly with their rent.
5. Lower Utility Cost
Yard maintenance, internet, electricity, water, and internet are majorly taken care of by the landlord. Only a small portion is paid by tenants when the cost is divided between them. Since apartments are usually smaller than homes, the cost is not much. However, for homeowners, it is significant. They have to incorporate it into their monthly budget under utilities.
6. Flexibility About Your Place of Residence
Unlike owning a house, renting one allows a form of flexibility about where you live. You can choose to relocate at any moment to pursue your career or get a job. For homeowners to do that, they’d have to leave their home or sell it.
7. More Affordable
Renters pay insurance. It is a requirement before any lease is given. Nonetheless, renters insurance is not as expensive as homeowners insurance. Homeowners insurance covers the cost of repair or replacement of the building structure and the belongings inside. Renters insurance covers only the cost of repair or replacement of the belongings.
Renting an apartment helps you save more than owning a home. Nonetheless, whether you choose to be a homeowner or renter depends on you. In both cases, you need insurance. ISU Wissink Insurance Agency has renters insurance with the right coverage to cater to your need. Our team of experts is always available to assist you. Contact us today to get a quote!