Top 10 Reasons To Rent
By Veronique Kipen
Rent rather than own? On purpose? According to common wisdom, that's lunacy.
But once you steer your way through some myths and misunderstanding, renting
often emerges as the preferable option.
- Save money
Common wisdom says renting equals throwing your money away. The truth is,
unless you're planning on staying in a house for more than five years, you
run the risk of losing money if you buy a home. Mortgages are amortized so
you're paying mostly interest in the first few years. Add in property tax,
insurance, maintenance costs and the fees associated with selling the house
and five years of renting can be significantly cheaper than owning.
- Movin' on up
Speculators are driving real estate prices up--bad for buyers but great for
renters. The current real estate bubble has resulted in a large supply of
reasonably-priced homes and apartments on the market right now, so renters
can live in neighborhoods they couldn't afford to buy in.
- Be choosy
If you're new to an area, renting is a smart way to get the lay of the land.
It can take several months to get to know a new city or neighborhood. Renting
gives you the freedom to browse, to learn the quirks and nuances of various
areas and figure out which one is your perfect match.
- Peace of mind
Heater broken? Roof leaking? When you're a renter, that's someone else's headache.
- Easy on the pocketbook
Once you've shelled out the first month's rent and the deposit, your monthly
outlay remains the same. Rents rise between two and four percent per year.
But variable interest mortgages and sudden jumps in property tax can be much
steeper, with more potential to wreak havoc on a rigid budget.
- Footloose
On your way up the career ladder? According to the Bureau of Labor Statistics,
you'll change jobs an average of nine times before you turn 35. Renting leaves
you nimble--just 30 days notice and you're out of there.
- Short attention span
As a renter, you can sample life in a mid-century modern glass house, switch
to an inner-city Victorian, then head for the hills in a rural corner of town.
- Baby on board
Customize your city to fit your parenting needs. Choose your house or apartment
based on the park, school, library, or health care services that are best-suited
for your particular needs.
- Less risk
In a volatile real estate market, renting carries no risk. It frees up your
money for other investments--school, vacation, a small business, or stocks
and bonds.
- Free time
Would you rather go to the movies than grout the kitchen tile? Does testing
for mold or radon gas sound like fun? Renting means not having to say you're
sorry that these and a myriad of other home-related chores and disasters are
someone else's problem.
Copyright © Homestore Inc.
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Equal Housing Opportunity.