Why Renting Your Home Could Save You Money.

Why Renting Your Home Could Save You Money

Should you rent or buy your home. Check out these pros and cons of renting your home.

 

Many people choose to rent rather than buy their own home and this can be for many reasons. Perhaps work commitments such as working for the military means that you need to relocate on a frequent basis, or the huge upfront deposit may be currently achievable. Whatever the reasons, there are actually a number of benefits to renting a home rather than buying, especially during the current uncertain financial times.

rent or buy your home

 

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In this post we’ll discuss the pros and cons of renting your house.

 

Pros to renting your home

 

Flexibility

Renting allows lots of flexibility, meaning that you have a choice of where you wish to live. When you want to move you can give your landlord notice and up sticks. This is a definite advantage if your career involves travel. You can literally move anywhere in the world without leaving a property behind which needs maintaining. If you find that the area you have moved to isn’t to your liking or the neighbors are annoying – no problem, just move! If you’re a military family you can easily get out of your lease early using the soldiers orders if needed.

As time progresses, different stages during your life mean that the size of your property requirements will change. For example a young couple may only need a small apartment or flat, whilst they save for the future. Families with children will require more space and an elderly couple may decide to downsize, once dependents have moved out. Renting facilitates this flexibility.

 

Lower cost

If you are renting for a short period it is normally cheaper than paying a mortgage. Mortgages have many associated costs, whereas renting a property often means that you won’t need to pay hefty taxes and insurance bills. The whole process of buying your own is expensive, when you add up the costs involved in the purchase of your home.

No maintenance costs

As a renter you will not be liable for paying maintenance and repair bills. Owning your own home is a financial strain when you need to keep finding the cash for essential repairs. If your roof starts to leak as homeowner it’s down to you to fix it. A tenant will just phone the landlord. The landlord is wholly responsible for repairs unless damage is caused by negligence by the tenant.

 

Fixed monthly rent

The rent on your property is likely to be fixed for a year or two and when the rent is increased the landlord is obliged to give their tenant plenty of notice, so that they can search for another property if they so wish. Mortgage payments however have the potential to fluctuate on a monthly basis, making budgeting very tricky.

A home which reflects your personality

Renting your own home allows you to live in a property which reflects your personality, you will also have the flexibility of renting in an area which offers the facilities you require. Military personnel will need to rent a property close to base or actually on the military base. Renting still allows you to make your house your home and you can individualize it to your taste. It is important to recognize a person’s individuality, just the same as it’s possible to create military custom morale patches highlighting your individual attitude, rank and combat awards, it is possible to make a rented home as individual as you and your family are.

You could choose a city apartment, country mansion or a villa with a pool. The choice is yours. You are also more likely to be able to afford to rent houses that would be out of your budget to buy.

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Lower deposit

Most rental properties require a bond and a months rental amount upfront. You will also have fees related to credit searches. These costs do mount up, but they are nowhere near as much as the costs relating to buying a property. More often than not in today’s climate you need at least 20% of the property price as a deposit to secure a property, which often takes a lot of years of careful saving.

 

Cons to renting your home

 

should you rent or buy your home.

 

Insecurity

Owning your own home brings stability, which is contrast to the flexibility that renting offers. As a homeowner you will quickly become part of your local community and you feel a sense of pride. Unfortunately renting means that your landlord could suddenly decide to sell up, leaving you with the only option of looking for another property. Tenants do have rights though and it’s worth checking them out if you are left in a difficult situation. You should always be given reasonable notice to vacate a property. Most landlords like to have long-term tenants, who they can trust to pay on time and look after the properties condition.

Waste of money?

Eventually if everything goes to plan a homeowner will own their property outright, once the mortgage is fully paid. Renters hand over their money to the landlord and are in essence paying off the landlords mortgage! Research has shown however that if you saved or invested the money that you haven’t had to pay relating to maintenance costs, as a renter you would be considerably better off! You could probably save enough money to buy a house outright. You could also use the money to save for an early retirement.

 

High rents

In certain areas of the country the cost of rent for properties are extortionate! Rental properties that are high in quality can be hard to find, especially in popular areas. In the main renting is cheaper than owning a house, but this is very much dependent on where in the country you live. Supply and demand pushes landlords to increase prices. This situation could worsen as fewer people are able to get on the property ladder du to the large deposit needed.

Seeking permission

Having to ask your landlord’s permission to do anything to your rental property can be frustrating. Some landlords will not let you decorate or put up pictures and shelves without their permission. Owning a pet can be contentious too, as a lot of landlords will not allow pet ownership in their property. If this is the case it’s worth asking if you can put down a larger bond, to cover any potential damage and offer to deep clean the property when you leave.

Should you rent or buy your home. Check out these pros and cons of renting your home.

The decision to rent or buy is not an easy one. The unpredictability of the housing market means that the supply and demand of properties is hard to predict. Look at your lifestyle and try to make a decision based on your personal circumstances.

You might also like: How To Make Your New House Feel Like A Home

Written by: Devon

 

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