Which best describes the benefits of renting a home?
Renting is an ideal option for people who aren’t sure they want to become homeowners or for those who simply don’t want to put all their eggs in one basket. Here are some of the biggest pros to renting:
1. It’s cheaper than buying – In most cases, a monthly rent payment will be lower than a mortgage payment.
2. You don’t have to pay property taxes – Real estate tax payments can add up to thousands of dollars each year, especially in more expensive areas.
3. You have more flexibility – You can move out of your home at any time, and many rental terms don’t last longer than a year.
4. You can save for a down payment – With a lease, you can test out a home before you decide to buy. The percentage of your rent that goes towards a down payment will depend on the terms of your contract, but it’s usually a significant amount.
5. You can have greater peace of mind – Some homeowners find themselves with an empty house, which makes it difficult to keep tabs on maintenance issues and vandalism.
6. You can build equity – With every monthly payment, you’re building equity in your home. With that, you can pay off your mortgage quicker and eventually buy a bigger house or invest in another property.
Whether you’re looking to buy or rent, these nine big pros are worth considering before making your decision. It’s important to be honest with yourself about your goals and financial circumstances, so that you can make the best decision for you.