For generations, people have been pursuing the dream of home ownership, but these days more people are considering renting a home than ever before. As homeowners and young families have grown savvier, some have discovered that renting may be the better choice for them. While there are advantages and disadvantages to both home ownership and renting, renting is becoming more popular for a variety of reasons.
1. Not Having to Come Up With a Down Payment
It can be difficult to come up with a significant amount of cash for a down payment on a home, particularly when you’re trying to raise a family. If you rent your home, you’re spared the burden of having to either give up your savings or waiting for years to raise the extra cash. Even with a security deposit, the cost of renting is much less than the cost of closing, particularly when you take into account the additional closing costs for buying a house.
2. No Need to Do Repairs or Costly Improvements
A first time home buyer is often surprised by how often unexpected expenses seem to arise. If you rent your home, you don’t need to worry about paying for a plumber to fix a leak or learning how to do repairs. When your roof leaks, you simply call your landlord rather than try to come up with hundreds or thousands of dollars for repairs.
3. No Real Estate Taxes
While real estate taxes vary widely depending upon where you live, the size and condition of the house and other factors, you can assume that you will need to pay several thousand dollars on a home you own.
4. Unstable Property Values
Although housing values are now stabilizing, they haven’t yet recovered fully from the housing bubble of 2008-2012, when the value of homes plummeted in a poor market. Many homeowners ended up holding mortgages for homes that are now worth less than what they owe on them. By renting, you avoid an uncertain market that could saddle you with an underwater mortgage or foreclosure proceedings.
5. More Housing Flexibility
Buying a house ties you to one location for quite a while, so if you’re planning on growing your family or there is a chance your job could mean a move to another location, renting may be a better option. Renting also gives you the flexibility to move if your needs change. You can either downsize or upsize your living space and expenses much more easily if you rent.
6. Lower Insurance Coverage Expenses
Anyone who has a mortgage has to have a homeowner’s policy in place that will cover the house and the mortgage. Renters, on the other hand, aren’t required to have insurance. You can expect to pay anywhere from $50 to $100 per month for homeowner’s insurance for an average size house. The cost of renters’ insurance is so low, however, that you really should invest the approximately $10-$15 per month that will protect your furniture and belongings.
If you’re ready to rent a home in the Ellwood City, PA area, check out the listings at Look At My Homes, where you’ll find homes to fit every budget.