5 Reasons You Should Rent Instead of Buy

1.     Less Responsibility – When you rent a home or apartment, most of the responsibility is on the owner’s shoulders. This means that if a pipe bursts and damages the sheetrock inside the home, you’re not likely to have to pay to replace it. However, if you own a house and the same thing happens, the repair bills will come right out of your pocket. Usually, when you rent a house, you’re responsible for minor maintenance such as changing the filters in the AC unit and replacing light bulbs. However, once you’ve purchased a house, everything falls on you.

2.     No Debt – When you’re renting a house, you are responsible for the monthly rent and utilities; that’s it. On the other hand, when you purchase a home, you’re more than likely going to take out a loan to finance it. This will put you in debt a few hundred thousand dollars and possibly delay future plans. Purchasing other things on credit can be pretty difficult, at least until you’ve made many payments on the house and have made them on time.

3.     More Freedom – When you rent a house or apartment, you’ll likely sign a six-month or one-year lease. This means that you’re tied to that place for at least that amount of time. Once the time is up, you can move to another location if you choose, or you can renew your lease, provided the landlord agrees. However, when you purchase a home, you are tied to that house for the term of your loan, which is often 20 to 30 years. That is, of course, unless you have the money to purchase a home outright, which most people don’t. You may also sell the home, but you are subject to the whims of the housing market.

4.     No Financing – Most individuals who purchase a home need to obtain some type of financing, which usually comes in the form of a loan. There is a long, drawn-out process involved in getting a loan and this sometimes includes exorbitant interest rates. When you rent a home, you don’t have to worry about financing.

5.     Short-Term Housing Needs – Renting is best for short-term housing needs, such as those who are attending college or individuals who are in or plan on going in the military. Renting allows you to move easily when you plan on relocating. However, if you purchase a home, you will have to go through the process of selling it or at least maintaining it, which can be frustrating

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