Renting Vs Owning: The Big Debate

by Mike on June 23, 2017

Renting Vs Owning: The Big Debate

It’s been said a thousand times that buying a house is a big and expensive commitment, but nevertheless it’s presented as the ultimate life goal, especially for millennials. However, have you stopped to consider that renting isn’t as terrible as you’re making it out to be? For every case made for the benefits of owning your own house, there is also a benefit to renting. Here are just a few points to help you make up your mind.

Renting

Flexibility

Life is rarely predictable. When you buy a house you’re going to spend years paying off the rest of your mortgage, and so many things could happen that could cause you to leave; divorce, a job offer in another state, or even bankruptcy. On the other hand, renting gives you more flexibility to deal with those changes as they come. If a relationship falls apart you both just divide your assets and either end or adjust your lease.

Maintenance

When you’re renting, your landlord or their management team is responsible for the repairs and any other unexpected costs of owning a house. Most rented accommodation is now under the management of real estate investment trust companies like Invitation Homes, so tenants can be assured that the homes that are modern and well-maintained, and located in desirable neighborhoods. Would it really be so bad raising a family here?

Don’t need good credit

One of the biggest obstacles that stops you from buying a house is your credit. While you are not to blame for your economic difficulties, it can feel like you’re being judged as you try to plead with a mortgage lender to give you a good deal.

Owning

Tax deductions

Unlike mortgage payments, rent is not tax deductible. If you get a $300,000 mortgage at 5 percent, you’ll make about $20,000 in payments in the first year, of which about $15,000 will be tax-deductible interest. It might cost a lot to buy a house, but it can pay off in the long run if you’re willing to wait for it.

Investment in the future

If you’re buying a house to live in it, you might be less affected by the fluctuations in house prices. This means that, once your mortgage is paid off, you’ll have a secure place to live once you retire, or you could rent out your house to young families if you decide to travel for a bit. At the end of the day it’s just nice knowing you always have a place to come home to.

Responsibility

True, when you’re renting your landlord is responsible for the repairing any faults, but that’s assuming you have a good landlord in the first place. There’s a reason so many people want to buy their own house; they’re tired of being at the mercy of a landlord to fix their heating in the middle of winter. It might be expensive for you to sort it yourself, but at least you know something is being done about it.

 

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