As you settle into adulthood, you may start to realize that renting an apartment or a home gives you limited ability to make changes to that property. There’s also a negative stigma around putting money into something on a monthly basis that you’ll never officially own.
However, while you’re getting settled into your new job, paying off student loans, or are holding other debts, renting a home may be your best option and sometimes the better choice.
The benefits of renting a home
Homeowner costs –
When you purchase a home, you may not realize that there are hidden fees to be a homeowner that you don’t deal with as a renter.
Things such as putting a down payment on the house, paying monthly maintenance, fixing machinery and appliances that break, and keeping the yard and grounds clean.
These monthly costs add up and while some months you may have higher extra fees than others, as a tenant you typically never see or notice all that goes into keeping a property up to date.
Hidden costs like insurance and taxes –
In addition to these items, a homeowner must also pay property taxes, realtor fees during the purchase process, and monthly homeowner insurance. If you live in a private or gated community, you’ll also have HOA fees each month.
Depending on where you live, you may also need additional insurance for weather such as flood insurance.
The overall costs –
As a renter, when you factor in these added homeowner costs you may realize over the course of 5-10 years, you actually save more money renting.
Be sure to use an online mortgage calculator to help you make an informed decision before you decide to take the leap and give up your rental.