There are several benefits in renting versus buying a home. The question of whether to rent or buy a home hinges on several factors. These factors include the buyer’s marital status, income and desire to own a home. Young families often grapple with the idea of renting versus buying a home. The following are some of the major benefits of renting a home versus owning a home.
Easier to Rent a Home than Buying a Home
Anyone who can show sufficient income and pass a background check can rent a home almost instantly. They can sign the lease and move-in within few days. This is a far easier process compared to finding a home for purchase. Renters have many resources to find the best rental units in any part of the country. Most people can rent a home even without seeing the home, with the help of online resources.
Little Upfront Costs
Renting a home takes very little upfront costs. These usually include fees for background check and a rental deposit. Unlike buying a home where you need to either bring a boatload of cash or get a loan from a bank, renting is less expensive. Most home buyers would need a loan and the best loan products would require paying at least 20% of the purchase price as a down payment. Most people cannot afford this and are happy to become renters.
Easy to Move in and Move out.
A renter can easily move-in and also move-out depending on the terms of the lease. However, moving out of a home requires the help of a realtor to sell the home, finding a buyer, paying the realtor and taking care of taxes, etc. Renters don’t face any of these issues and are free to quit the rental house with fewer hassles to worry about.
Renters don’t need to worry about the tasks involved in maintaining the home. If something is broken, the landlord will take care of it. Most lease agreements state that the landlord is responsible for the maintenance of the rental unit. If you own a home, then you are responsible for repairs and payments towards mortgage, taxes and insurance.
Regardless of whether you rent of buy a home, it makes sense to rent a home first before planning to purchase a home. Buying a home requires regular income, substantial down payment and is much more tedious. There are several benefits in renting a home as outlined above. Ultimately it is a decision that depends on one’s long term financial goals.