The most common misconception about renting is that you’re wasting money every time you pay your rent. But how true is it?
Whether you are renting, building, or buying a property, you need a place to live, which always costs money in some way.
Some people argue that rent payments do not contribute to equity or wealth creation, but not all the costs of homeownership do.
Plus, having a building doesn’t automatically mean you can get a buyer when you need to liquidate your assets.
Here’s why you should choose to rent rather than own:
1. No matter how high your income gets or how bad the economy is, you can pay a fixed amount for rent for years
When you rent, you know exactly how much your housing expenses are. This is even better if you take out a two- or five-year lease.
When your lease is up for renewal, you, as a tenant, might experience rent increases. If you live where there is rent control and rent limits, it might not be so easy for your landlord to increase your rent.
What if you got a new job or something happened and you had to move to a new city or country? You can’t carry your house with you; However, you can move anytime your lease expires .
2. Renting is cheaper since there are no upkeep or repair costs
It’s less expensive to renovate an already existing house than to build or even buy one. The absence of maintenance and repair expenses is one advantage of renting a home. This means that when you rent a property, your landlord is obligated to repair or replace anything that stops working. But as a house owner, it is on you to make sure your house is in excellent shape at all times.
3. Renters save money on amenities
Renters also save money by having access to amenities that would otherwise be quite expensive if they had to pay for them themselves. Many midscale and serviced apartment buildings include luxuries like an indoor pool or a fitness centre as standard features at no extra cost to renters.
These luxuries would probably cost a homeowner a lot more money to install and maintain if they wanted them.
4. You can live in the city
Homeowners usually have to live in the suburbs and suffer the trouble of longer commutes. Homeowners are limited to the places where they can afford to buy, but renters can live almost anywhere in the city. Most homeowners may not be able to afford to live in a pricey metropolis, but renters can do so with ease.
5. Property prices doesn’t affect renters
Renters are significantly less likely to be impacted by property devaluation than homeowners, if at all. You can spend a lot of money to build a house, and when you want to sell it, market forces can cause a devaluation.
However, many people would like to own their houses if they need a bigger space customized to their own needs, if they do not want to have to worry about paying rent in their old age and have a home to pass on to your children. Plus, they might be visited by sudden misfortune and suddenly can’t pay rent anymore, a home offers security.
