In the great checklist of things people want to do before they die, there are a few things that almost always make the list; marriage, kids, and owning a house. The desire to own a house has becoming increasingly unattainable for most millennials, and therefore more desirable. But does that mean renting is all that bad? Of course, there are some horror stories about landlords that give a certain appeal to ownership, but surely that’s just a reason to try and find a better landlord, not spend years saving for a down payment. Perhaps you do dream of owning your own house one day, but here are a few reasons why renting might be a pretty good deal.
One of the biggest obstacles that stops you from buying a house is your bad credit report. While you are not to blame for your economic difficulties, it can feel like you’re being judged as you try to plead with a mortgage lender to give you a good deal. Not to mention it can add years to the time you spend renting because you’re trying to save money and build up some good credit. You can instantly take a big stress off your mind by deciding to make peace with renting; you can still get a house in the future if you want, but you don’t have to put pressure on yourself by trying to get to a good financial place by the time you’re thirty.
When you’re renting, your landlord or their management team is responsible for the repairs and any other unexpected costs of owning a house. Most rented accommodation is now under the management of real estate investment trust companies like Invitation Homes, so tenants can be assured that there is a high standard of care within the neighborhoods, with homes that are modern and well-maintained, and located in desirable neighborhoods. When you think about how much it must cost to fix a leaky pipe or broken heating on your own budget, suddenly renting doesn’t seem so bad.
Life is rarely predictable. When you buy a house you’re going to spend years paying off the rest of your mortgage, and so many things could happen that could cause you to leave; divorce, a job offer in another state, or even bankruptcy. On the other hand, renting gives you more flexibility to deal with those changes as they come. If a relationship falls apart you both just divide your assets and either end or adjust your lease. When you get the job of your dreams, you can just end your lease early and jump on the next plane out of town.
It goes without saying that buying a house is expensive. Think about how long it took you to save up just a five percent down payment, and look at how much money you’ll have left in your account once the paperwork goes through. Is it enough to sustain you through the first year of homeownership?