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Why Do People Choose to Rent Than Buy a Home? Here Are 7 Facts

Time and again, you hear people say that renting a home is a waste of money. You know that being a tenant means you’ll be living according to rules of the rental. There are pet policies as well as limitations when it comes to guests and customization of your space. But despite these conditions of renting, why are more people, especially in urban areas, considering it? What makes renting better than buying?

In this article, we explore obvious and less obvious advantages of renting. If you’re confused whether to rent or buy, consider the points below. 

1. Zero downpayment 

Planning to buy a new home? You’ll have to provide a minimum downpayment first. This could be 5% to 20% of the price of the house. Acquiring the cash can be stressful – options like borrowing from your parents and loans give you something to worry about in the future. With renting, you pay a small security deposit upfront which you’ll be able to get back if you decide to move out.

2. Flexibility of location

Running a physical business would be best if you live near your customers. What if you plan a career change which entails transferring to a new place? In such situations, renting is the choice that offers the most flexibility. There’s no house that holds you back, not to mention the hassle of selling the property at a profitable price. Renting means you’re free to live wherever you want when the situation calls for it.

3. Other forms of investments

This area is actually a personal choice. While having a house you can call your own is a huge investment, it offers you no profits. Renting allows you to spend money on other things with potential for big returns. Examples are cryptocurrency (Bitcoin), stocks, and an online business. A house depreciates over time. As a homeowner, you need to keep the house in tip-top shape by spending on repairs and enhancements.    

4. Freedom from maintenance

Unlike homeowners who must deal with maintenance, renters are excused from dealing with repairs themselves. You skip the process of finding a licensed contractor. If there’s a leak in the unit or an appliance stops working, all you need to do is notify your landlord of the problem. Landlords are obliged to maintain their rental property. In situations where repairs are delayed for a good reason, you can tackle them yourself and minus the expenses from the rent.

5. Your house is not really yours

Susie Moore interviewed James Altucher. On owning a home, the American entrepreneur and best-selling author, quotes, “Try missing a mortgage payment, or a property tax payment, and see how quickly the land from underneath you is taken away.” He believes that home ownership has the worst downsides. It compels you to make constant payments, unlike other investment opportunities.

6. Access to amenities

Nowadays, there’s no shortage of apartments and apartment buildings that come with amenities. Amenities such as pools, laundry, gyms, and parking spaces make your rental experience more convenient and comfortable. Some rentals offer them for free or at a very affordable price. Picture out this advantage over spending thousands on an inground swimming pool.    

7. Appealing to the millennial generation

What do millenials think of renting? We know that millenials tend to deviate to traditional practices, which means that they prefer renting over buying. According to Business Insider’s report, the rate of homeownership among millenials has dropped at a fast rate. To millenials, there’s more to renting than affordability. Reasons for renting include social opportunities (living with many renters), the inability to commit to a neighborhood, and the idea of picking up and going as you please.

For Tenants

As you can see, renting a home has many benefits in terms of meeting your personal and financial needs. Whether one should rent or not is a subjective matter and is now considered by many – millenials and people who want convenience.

For Landlords

There is no better time than now to become a landlord. You can make a living with rental properties especially that more individuals prefer renting. Finally, I offer you the opportunity to take my complete landlording course: Landlord Prep: Video E-Course and How-To Tutorials. Everything you need to know to become not just a landlord, but a successful landlord, is here.