While it seems like everybody in America is rushing to buy a home, there really are some benefits to renting, instead! Sometimes it doesn’t seem like it, though. How are you supposed to know if you’re best off buying or renting? What do you need to know about choosing renting over buying?
You Have More Flexibility
If you’re young and still enjoying a life where you want to travel, renting is a great option for you. Even if you have to have a year long lease, it is only a year. Most houses, when purchased, have complications with paying back the mortgage before five years are up. If you are growing in your career and looking for work all over the country, having the ability to not suffer that financial punishment for a necessary move is a good thing! And, as Quicken Loans points out, depending on the type of property you are interested in, renting may actually be cheaper!
You Still Need Insurance
If you’re choosing to rent, you don’t need mortgage insurance, but you still need to be insured. The things that you purchase and use in your daily life aren’t of no value, just because they’re in an apartment instead of a freestanding house! According to Insurance Center Associates, renter’s insurance should cover most of your major belongings and valuables. Some options will need your documentation to show what you own, and especially to have values for things like electronics, computers, and other high-priced items. Covering your stuff is just another part of adulthood, to make sure you’re protected!
You Could Save Money
It seems like it’s always a fiscally good choice to purchase, but this isn’t true! In fact, especially in a very expensive market, being willing to stay in a rental for a few more years can save an incredible amount of money. There are “rental calculators” which can help you determine what your savings will be. According to some, staying in the same location for three years can net you over seven thousand dollars, of done correctly. That’s nothing to sniff at, and very well could add up to be your necessary nest egg if you do decide to purchase later on.
Regardless of whether you choose to rent or buy, the most important thing is to be an educated consumer. Use the rental calculators to see if you are saving by renting long term. Make sure your current apartment is insured. And remember: just because it’s a hot market, doesn’t mean it’s the right market for you!
Read this next: How to Know When It’s Time for Home Renovations
