When moving to a new city, finding a place to live can leave you wondering, “should I rent or should I buy?” Weighing the pros and cons of renting before you commit to a living space is a responsible move that will prepare you for the housing hunt and minimize your stress.
In America, we tend to idolize the idea that everyone should own a home. But renting can be a viable option for many people. It is an especially smart option for people just moving to a city, unsure of their future plans.
Take time to research options and seek advice from others who choose to rent. Consider these reasons to rent before making your final decision.
Haley's 6 Reasons to Rent
- Cheaper Than a Mortgage: If your rent is lower than a mortgage would be in the area of town where you would be living, renting may be the right move for you.
- Low-Commitment Level: Renting is a convenient option if you do not know how long you will be in a city, especially if you are in a profession with high turnover or frequent moves. You do not have to commit to lengthy paperwork and payments that buying requires.
- Not Responsible for Maintenance: Rather than having to do all of the handy work yourself, renting puts maintenance of the space in the hands of the landlord. It is her responsibility to oversee the maintenance of the house or apartment.
- No Downpayment: Renting does not require a large sum payment upfront to acquire your living space. You may not have enough savings or credit to qualify for a home loan.
- No Taxes: The landlord is responsible for paying taxes on the property. This is a huge financial burden lifted from you as a renter. On the downside, you don't get the home mortgage tax deduction.
- Cheaper Insurance Policy: Even if you are renting, you should have insurance! Homeowners insurance for the landlord does not cover the physical belongings in the housing space. The good news is that renters insurance is affordable which means if you are renting and don’t have it, shame on you.
Part of taking the stress out of life to achieve success in the city is preparing and planning for your living situation. Renting should not be overlooked because of its convenience, flexibility, and low liability. Renting can also be part of a savings financial plan that can help set you up to own your home when you are ready in career and personal life.