If you are asking yourself the question, "should I rent a home?", then you are reading the right article! Renting vs. buying is a very serious topic any person will face in their lifetime. There are many benefits to both, but you have to keep in mind what is the best one for you. I will discuss the top 5 benefits of renting, as they may change your mind if you are thinking of owning a home.
Renting provides you the ability to be able to move around freely. Many young people especially are not ready to settle in one area and are very open to exploring. By renting, it provides you the flexibility to live in different areas out or within the country because you are not tied down to owning a home. Not only does renting fit to those who do not want to necessarily settle, but it also allows people who are new to the area to test if they like living in certain parts or not. Buying a home in an area you are unfamiliar with could perhaps have a lot of negative consequences to your liking that may follow. If you are to buy a home, it is a lot more difficult to quickly move, as it depends on your house to sell.
2. No Maintenance Costs
When you rent if you have issues that need maintenance, then it costs the tenant not a dime! You simply pay nothing out of pocket, and get it fixed for free out of the expense of the homes owner. Sometimes when you have maintenance issues and you own the home, the bill can become quit pricey depending on what the issues are.
3. Not Needing Homeowner Insurance
Homeowner insurance is much more expensive than renters insurance costs. Homeowners insurance averages around $100 a month, equivalating to $1,000 every year. This differs than renters insurance, where it only typically costs around $10 monthly, which is around $100 a year.
4. Property Taxes? Nope!
As a tenant you also get to save more money by not paying property taxes. When some homeowners think of buying a house, the thought of property taxes on top of the cost of the home may not cross their mind. Depending on the location, property taxes can be a huge issue to homeowners because they can cost thousands of dollars yearly. According to Iowa Property Tax Calculator - SmartAsset , homeowners in Iowa pay the 11th highest property tax rate, averaging around $4,000 yearly. Do not let this scare you away if are wanting to buy a home, but be cautious of the amount within your desired location.
5. Don't Worry About a Down Payment!
Down payments cause homeowners to have to pay out of pocket averagely 20% of the total cost of the home's price up front. So say the home costs $200,000, you have to pay $40,000 right away in cash. Many do not have the funds to be able to pay this percentage and so if you have not saved up, continuing to rent may be a great option. When you rent, a deposit ends up costing way less than the amount a down payment would cost. Renting is typically one months rent, which depending on your rent could only cost averagely $1,000.
Though we are a Property Management company and love those who are interested in renting, we understand that you very well may be ready to own a home. Before acting on any impulses, do your own research and figure out if renting or buying a home is right for you! If you are questioning whether or not to buy a home, give yourself some time to make a final decision and rent until you are ready.