Do you prefer to be a homeowner or a renter?

This is one of the most difficult decisions someone has to make in their life. A lot of people want to have their own house and transform it exactly how they wish. As beautiful as it sounds, being a homeowner is definitely expensive. If you don’t have enough money to get it, you can apply for a mortgage, but that will cost you an arm and a leg in the long scheme of things.

However, both owning and renting have their own benefits and disadvantages, and these factors are really important to take into consideration when making a huge and life-changing decision. Choosing between signing a lease or buying a house or an apartment is not easy, but with the proper knowledge, you can make the educated choice.

Speaking of that, buying and renting are substantial financial commitments, but usually in distinct ways, as well as to contrasting degrees. So, in what ways is it better to rent a home rather than buy one? We’ve talked to different people and experts, and this is what we found. Here are a few of our reasons why it might be more beneficial to rent a place to live than to own it.

1. More flexibility 

One of the leading reasons why people prefer to rent a space rather than own it is that it gives them more flexibility. If something happens, such as switching jobs, moving to a different city, or simply getting bored and wanting to switch things up, it’s easy to do. It’s a lot harder to sell a house than to break a lease. Besides that, it’s also a lot quicker.

Even if you don’t quit your lease early, renting establishes clear boundaries on which you can base important lifestyle choices. For instance, there are many people who like to know that they only have to put up with their living arrangement and/or location for about a year if they ultimately regret it. And that’s something that makes them motivated to choose better the next time.

2. No property taxes

There are states where property taxes are high, and it’s your duty to take care of them if you’re the owner of the property. That’s exactly one of the reasons why a lot of people prefer to sign a lease; the landlord is the one who’s in charge of the property taxes.

When you rent a place to live, you have no responsibility in terms of paying these expenses on your unit. And considering how high they run in some places, that’s a major way for you to save some money in your wallet every year, so you have to really think about it.

3. Zero pressure to renovate 

I was in college when I first had a lease. I was living with my best friend in a three-bedroom apartment in downtown Chicago, and it was awful. Of course, at first we thought that the location was great, but there were plenty of things we didn’t take into consideration, such as a lot of noise in the middle of the night, thin walls, and incredibly old furniture. We’re not even joking. The cupboards were so old that one time we opened the door, they simply fell off. We also had mold on the bathroom ceiling, and the window there was so tiny that we couldn’t properly open it.

However, the rent was affordable and the bills were okay, so we didn’t mind leaving there for a year. But we have to be honest and say that the simple thought of knowing that it wasn’t our forever home helped us a lot. And I’m not the only one who thinks so. Many people say that they don’t have a problem with how the place they live in looks as long as it’s not forever.

It’s a lot easier to be comfortable with an outdated kitchen or with wooden floors that crack every time you walk on them when you’re only renting out a space. Things drastically change when you’re the owner of a property because you’re in it for the long haul and you can’t live in a place where things are about to fall on top of you. And if you own a place but you want to sell it, you still have to spend a lot of cash to renovate it if you want to get some good money out of it.

4. You know what you pay each month 

It comes as no surprise that many of the advantages of renting vs. buying a home are financial. Even though you don’t have a lot of independence in terms of house remodeling and decoration, think of it as a way to save some money. You already know how much your rent is, and you also have a general idea of what bills cost, so you won’t have any huge surprises.

But when you’re the owner of a place, things are pretty much different. That’s because interest rates might fluctuate over time, going up or down without the owner’s influence, depending on the conditions of a mortgage. The same thing applies to property taxes as well, which almost always oscillate.

When you sign a lease, you agree to a monthly amount of money that you have to pay for the full term of your contract. The good thing is that the only fluctuating costs you might have to worry about are paying more for electricity or heating.

5. Less expensive

Up until this point, we’ve said that being a homeowner will cost you more money than renting a place to live. The truth is that you’ll have to pay a lot of money on a lease too: security deposits, application fees that are non-refundable, and the first and last month’s rent at signing.

But it still won’t be as expensive as owning a home. The down payment and the closing costs will surely make a hole in your budget if you’re not ready for them. Even though your monthly rent might be a tiny bit higher than paying the cost of a mortgage each month, there are a few good things about it. You don’t have to be scared about expensive things such as home repairs and property taxes.

…You win some, you lose some. Isn’t that right?

6. Repairs are not your business

Is your dishwasher broken? Did your windows get smashed? Does the furniture keep making squeaky noises? Well, that’s not your problem. When you are simply the renter of a home, the repairs or home improvements and their concomitant costs are the responsibility of your landlord or management company (if there are any).

But let’s not get happy too fast. Depending on the contract you’ve signed, you might be asked to contribute to the renovations if the issues were caused as a direct result of your behavior. But don’t worry, as long as you take good care of the place you live in, that shouldn’t be a problem. Long story short, it’s easier to call your landlord and tell them that there’s something wrong in your home than to pay for the whole thing yourself.

7. Utilities are sometimes included 

If you’ve rented a place and some of your utilities are included, you’re lucky! There are a lot of management companies and landlords that want to help their tenants with the overall cost, so they take care of some of the utilities themselves. This means that you might receive free internet, heat, water, and more.

However, if you rent a home and the utilities are not included, you’ll still be able to save some money. That’s because these bills are usually a lot more affordable than when you purchase a home since many rentals have way less square footage, compared to homes that are meant for single families.

…What do you think about today’s topic? Are you a homeowner? Or are you planning on becoming one? We are curious to know if you prefer to have your own home or sign a lease, so tell us in the comments down below! 

…Do you want to save some money? Did you notice that you pay a lot on your household bills? We have some tips for you! Check this article out: Want To Lower Your Household Bills? Here Are 8 Ways You Can Do It!