Renting vs Buying a Home in 2020
This year has been filled with unexpected occurrences and perhaps you're feeling like a change is required by making major financial decisions regarding your living situation. With the market changing you may be wondering whether to buy or rent a house this year. Follow along as we outline the advantages of renting a home in comparison to purchasing one in 2020.
Not as costly
Renting has its fair share of financial hurdles like security deposits and non-refundable application fees. Your rent might be higher than a monthly mortgage cost, but at least you don't have to worry about property taxes and home repairs. At this time renting is still a much more affordable option than purchasing a home. Opting to buy a house comes with hefty down payments and closing costs.
Less Risk
Buying a home is a costly investment that comes with risks. Renting on the other hand, means you don't have to worry about the market crashing, or unexpected home repairs that could potentially wipe out your savings. In fact the biggest risk that comes with renting is whether or not you'll be happy with the place you've rented.
Flexibility
The freedom that comes with renting can't be trumped. The possibilities are endless. Feel like packing up and moving to a different country? Breaking a lease is much easier than selling a house and worst case scenario is you only have to put up with it for a year or so, which is STILL faster and less hassle than selling a house.
Don't worry about repairs
Living in a home you can expect issues to arise at any time. Plumbing and maintenance costs will be covered by your landlord, however depending on your lease, you could be required to contribute to the repairs that are a result of your actions. It's way less stressful to call your landlord to have something fixed than to call and pay off repairs on your own.
Forget about property taxes
Property taxes are a huge expense of home ownership. When renting you don't have to worry about paying the property taxes for your unit. These taxes vary from state to state but either way it's a huge burden that would put an affordable home outside a buyers price range.
No unexpected costs
Home ownership is a variable cost endeavor. This is because of your mortgage terms as interest rates change over time. This would result in a fluctuation of property taxes as well. Show yet another advantage of renting as you have a set monthly amount for the entire term of your lease.
Extra included benefits
Depending on your landlord or management, some companies will cover certain utility costs for their tenants. This can include free internet, water, heat, etc. So make sure to pay attention to any houses for rent to see if they require you to pay utilities or not.
Fewer things to worry about
Living in a rental property you have the luxury to not worry about the small stuff. For example, small issues like chipping paint or damaged window frames aren’t the biggest problem but they require time and effort. When you're renting you don't have to worry about all the little things that make home ownership such a big responsibility.
No need to worry about upgrading
When renting your home it's easier to just be satisfied with an outdated kitchen or mediocre looking bathroom. Homeowners on the other hand who are in it for the long haul have to spend large amounts on upgrading and renovating their house. This is also because when they choose to sell the property it will have more value.
Ultimately the big decision of whether you choose to rent or to buy comes down to what you can afford and how much responsibility you want to have. Home ownership is a great experience and comes with its own perks. Renting however does have the upper hand when it comes to costs and flexibility. Make the decision that's best and most suitable for you and your finances.
Buckeye Northwest Realty provides houses for rent in Toledo, Ohio and the surrounding areas. To learn more about houses for rent, contact us today!
