While it still represents the American Dream, owning a home is not automatically the best option for everyone. There are a number of responsibilities that come with home ownership and, while there are some advantages, renting instead of buying also comes with its share of benefits.
Renting a home is much more convenient than owning it. When a sink is clogged or the hot water heater breaks down, you are not the one that has to deal with it. As a renter, you call the landlord to resolve the problem. You do not have to spend your own time or money fixing the problem; all of the financial burden is on the landlord.
When your career starts to take off and your employer wants you to take a job on the other side of the country, you can easily pack up and move when you are a renter. A homeowner has a home to sell before moving. If you are starting a family or just need more space, you can always look for a larger place to rent. As a renter, you are not tied to a home.
If you have ever tried to buy a home, you know that the process is difficult, tiring, and often frustrating. Dealing with financing, inspections, and more can make for a hard time. While you still need to search for the right place to rent, once you find it, it’s easy. You sign a lease, pay your deposit, and move.
- Increased liquidity
When you buy a home, you have to come up with a down payment and pay for closing costs. Often, this will clear out homeowners’ financial reserves. As a homeowner, you also have to pay property taxes, insurance, and maintenance costs. A renter pays a monthly rent payment and that’s it. As a renter, you will have more liquid reserves.
- Diversified assets
Homeowners normally have a majority of their wealth tied up in their home. As a renter, you have the ability to use your extra cash to invest in a variety of instruments from stocks and bonds to real estate.
Whether you choose to buy or rent, if you do not have the money for a down payment or for a security deposit, consider a car title loan from Embassy Loans. If you own a vehicle, you may be able to borrow against it. The process is quick and easy and can provide you with the funds you need to find a place to live.