Home. Not your parent’s home, but your own home. A refuge from daily life and a place where you can create your own style. But what’s the best way to get there? Buying a home is certainly an option, but more and more millennials are turning to renting a home as an alternative. There are significant advantages to renting, so before you decide, keep these things in mind.
You’ve seen the ads, “Why rent when you can own your own home for less!” This sounds almost too good to be true, and in most cases…it is. You see, these figures they throw out at you are mortgage payment vs. monthly rent. While the mortgage might be cheaper, there are a lot more costs involved when you own a home. Costs that are measured in money and in time.
Maintenance and Repairs
No matter how new or remodeled a home is, there are things that homeowners need to take care of on a regular basis. From mowing a lawn and shoveling a driveway to replacing furnace filters and draining hot water tanks, proper maintenance is essential to the upkeep of your home. When you rent, those are things that the landlord normally takes care of, depending on your lease of course. Repairs are also a thing homeowners need to plan for. When the AC quits in the middle of July, you’re going to want someone else to be responsible for those repair costs. Here again, landlords are responsible for maintaining the property in a livable condition.
Comprehensive homeowners insurance is more expensive than your typical renters insurance. This makes sense since it covers more. When you rent a home or apartment, the landlord is responsible for the insurance on the property itself. What their policy won’t cover are your belongings. That’s where renters insurance comes in. It covers YOUR stuff. NOTE: If you are renting, make sure your landlord shows proof of ongoing homeowners insurance and be sure you are covered by renters insurance. It’s a small price to pay for peace of mind.
No Long-Term Debt
If you’re just starting out, maybe in your first job, you want your own place, but you probably aren’t ready to take on a mortgage. While there are 15-year deals and some good interest rates, you probably already have enough credit card and student loan debt to worry about. Renting lets you get established and work on reducing that debt before you add more to it.
Freedom to Move
While your first job might be ideal for you, chances are you’re going to change jobs frequently, and probably within the next few years. You want to leave yourself open to career possibilities across town and across the country. Knowing this, you could buy a house and hope it appreciates in value and hope the market increases and hope you can at least break even if you sell it. That’s a lot of hoping. More than likely, the reality is you will lose money if you sell within the first few years after buying.
Consider Renting A Home
Whether home is a quiet place for you to read the latest bestseller or a noisy space filled with friends, keep the benefits of renting in mind when you are looking for your own personal oasis.