It’s been trumpeted for years that home ownership is a no-brainer decision, something everyone should aspire to. While it’s true that owning your own home has its benefits and can be a wealth-creating investment, it’s not the smartest decision for everyone all the time. Turns out that looking at the total value you get when renting reveals some eye-opening features. Here are five reasons to rent with confidence.
1. Cost Savings
Buying a home can make great financial sense, but it can take years to build equity and get the benefits of home ownership. In the meantime, there are things like homeowner’s insurance, property taxes, and closing costs. These costs (and more) can add up to around $10,000 over and above the costs of renting a home or apartment.
2. Cost Predictability
There are some financial risks associated with home ownership that aren’t always obvious and predictable. Costly repairs, for instance. Storm damage, water damage, plumbing mishaps, etc. Even with a maintenance budget, those costs can take the wind out of your sails pretty quickly. Depending on your interest rate situation, market volatility can also cause your costs to fluctuate. And the costs of relocating — if need be — can eat away at your investment in your home.
3. Flexibility & Convenience
Life can come at you fast, and you may not find yourself in one place for years at a time. There may be job or other opportunities that cause you to pick up and move, and an annual or monthly-to-month lease gives you the freedom to make those moves. Selling a home can be complex, time consuming, and costly. In some cases, it can take many years to reach the rent-vs-own break-even point, and it stings to have that investment hanging over your head when evaluating a potentially beneficial opportunity that requires relocation.
The choice of renting a multifamily unit adds the benefit of amenities such as fitness facilities, recreational facilities, security, coworking space, built-in community, and more. There are indeed some cost benefits for these, but the experiential benefits can also be significant depending on what a buyer/renter is looking for.
5. Low/No Maintenance
Home ownership can be really great and really rewarding. Really. But it also comes with its share of headaches. Broken pipes, roof repair/replacement, landscaping, electrical issues, and the to-do list goes on — for homeowners, that is. For renters, those repairs and maintenance solutions are only a phone call or email away. And it can be very reassuring and helpful to not have to juggle those responsibilities along with all the other life things you have going on.
All told, homeownership is just more costly than renting, especially in the short term. Something you don’t always hear in all the noise about wealth creation in our culture and economy. If you're looking for a home to rent, you can do so with confidence that you're making a smart decision.
If you or someone you know has a property to rent and is ready to capitalize on the smart decisions renter's are making, find out how Atrium can help today!