For lifelong renters considering moving into homeownership or those who have owned but are wondering if renting is the right move to take, the debate between buying real estate or renting can be one with strong opinions on either side of the issue. Each comes with perks and advantages, so deciding where to put your money should be done with much thought. What’s essential when making a decision is to know all the facts.
Who Rents and Who Buys?
It’s surprising to learn how many people are renters. Prehistory in Egypt dates to the earliest concept of renting. At that point, it was a very stark class system between those who rented and those who were landlords. In this case, the Pharaoh provided his servants with food and shelter to house them while they did his bidding minimally. From an economic point of view, 1809 began the law of renting era; renters have been around for millennia! Of course, there isn’t as big a class divided these days as there was. Students, families, entrepreneurs, and more have their reasons to rent. Of course, homeowners are just as diverse. There are homeowners as young as the age of majority, up to the oldest people in the world. They come from different economic backgrounds as well.
Is Renting Less Expensive?
A common refrain is that renters throw away money every month. While it is a fact that renters aren’t building up equity like homeowners are, the fact remains we all have to live somewhere, and it costs money to live anywhere. Having a roof over one’s head is not throwing away money. In addition to mortgages, homeowners will have the other costs of a home, including emergency repairs. For the duration of a lease, renters will know the exact price of their monthly bills. However, when it is time to sign a new lease (either in the same place or a new location), there is always the possibility of a rent increase.
Is Homeownership More Stable?
Renters often feel they have less stability and say in their homes than homeowners. After all, they are at the whim of their landlord, whether a corporation or a single entity. Homeowners have more say in how they decorate their homes. They also will have more rules about how they can make the space they live in theirs. Some landlords will have strict rules about decorations, parking, and even visitors. Unless they have a Homeowners Association, in which case they’ll have to adhere to those rules. Additionally, there is less fear of having to pack up and leave at anyone’s whim.
Is Renting More Carefree?
Renting is appealing to those who don’t want to worry about upkeep, maintenance, and other less-than-ideal elements of homeownership. Less responsibility leaves more time for hobbies and weekend getaways instead of phone quotes for repairs and weekends doing lawn care. After all, homeowners will have to ensure they maintain their lawns, roofs, and foundations, and that’s just mentioning the outside of the real estate property. Renters won’t have to worry about that, as that falls under the landlord’s responsibility. Of course, if the property maintenance becomes too challenging to handle, some landlords may decide to sell their property, which will make the future of the renters uncertain. There is no correct answer for one person when buying real estate or renting. People who want to buy a home will do so and enjoy the benefits and weather the challenges. People who find renting a more leisurely lifestyle will find properties that suit them and what they want to get out of a rental property
