When Is Renting a Better and a More Practical Choice?

woman relaxing on her couch

It is no secret that owning a house is everyone’s dream. Owning the roof above your head makes it an enticing idea for renters. You get all the privacy you want, and you get to take advantage of the increasing property value. But while being a homeowner comes with tons of perks, renting alone can also be beneficial.

There are many reasons renting could be a better choice for some individuals. You get the flexibility that owning a house can’t give you. You also get to avoid some fees that are more expensive than the others. To provide you with an idea of what these costs are, here are four perks that you can’t enjoy when owning a house:

Having the ability to live virtually anywhere

When you’re renting, it’s easier to move out and find another place to live—be it in another neighbourhood, city, or even overseas. Some landlords of good apartments in Townsville will indeed include in the contract that you are to stay for a minimum of months before you can move out. After that, you are free to go and relocate or stay by signing another rental agreement. This goes to show that renting is for people who often move around due to jobs or personal preferences. If you’re not sure that you can stay for years in a single area, then it will be a better idea to rent in the meantime.

Avoiding regular and costly homeowner expenses

Homeowners have lots of recurring expenses to pay. For instance, those who acquired a home loan to buy a house need to pay monthly mortgage fees and interest. Aside from that, you’re also responsible for the property taxes, upkeep, and repairs when you own your own home. For renters, you don’t need to worry about such fees. You pay only what is included in the rental agreement. Of course, you’re in charge of keeping the property clean. If you cause damage to the rental, what you’ll pay for will depend on what you and your landlord agreed upon in the contract.

Enjoying lower homeowners insurance fees

The amount of home insurance you need to pay is generally higher if you are a homeowner. This makes such fees more affordable for renters. The insurance policies are different between property owners and renters. While renters have fewer policies, you still get to dodge costly insurance fees. You can use the spare cash to invest in other things or add to your savings account.

Paying lower upfront fees

miniature house and calculator on a table

Homeowners generally have higher upfront fees that they need to pay. For instance, the down payment is usually 20% of the purchase fee or less. While there are mortgages that allow zero down payment, not all are eligible for such a home loan. Just for the down payment alone, it can take between a number of weeks to a few years before one can save enough down payment. For renters, one usually needs only a month worth of security deposit to move in.

With renting, you can enjoy lower upfront fees and homeowners insurance costs. You also get to enjoy more flexibility and avoid monthly recurring expenses. While there are advantages that you can’t take advantage of when renting, you still get to live in a decent neighbourhood that suits your budget and lifestyle. The next time you need to think about buying a house or renting an apartment, weigh in your options first by reviewing the unique perks that renting has to offer.

Scroll to Top