Whether self-owned or rented, houses have an emotional connection with the occupier. The house that you spent your childhood in or where you were staying while you got your first job will always have a special place in your heart. Owning a house can be a life goal for many people while some other people prefer to live in rented houses because of the numerous advantages it offers.
When you have to decide whether you want to own a house or rent one, there are many things that you should consider. You consider the time investment that will be required, the financial burden that you will have to bear, etc.
Many go for renting as their finances, time, and energy are too limited to own a home. If you, too, are looking for good rented homes in Nashville, then you can visit the website redfin.com to check out some great options.
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6 Reasons Why Renting A House Could Be A Better Option Than Buying One
1. Owning a Home Has Huge Financial Implications
When you want to own a property, you have to pay a lot of money. This is mainly because when you own a house, you also own the piece of land that the house is built on. That property becomes your asset and can be inherited by your future generations.
However, when you rent, the ownership of the asset does not undergo a change, you are just a tenant, and the landlord is still the owner. Hence renting is a cheaper option. So when you rent, you only have to pay a security deposit, usually equivalent to three to four months of rent.
Also, when a broker helps you find a house, he seeks commission. The amount of the commission is usually a fraction of the deal’s total value. Thus, in the case of owning a property, you have to pay a percentage of the entire asset value, which will be a huge amount compared to the commission charged for a rented property.
Also, the monthly amount of rent to be paid is not much; hence your monthly salary will be sufficient to pay the rent. However, if you are to buy a house, you will most likely need a loan from the bank, and the payment of monthly loan installments will become a regular long-term expenditure.
2. Renting A Home Has Less Tax And Legal Hassles
When you own a house, you have to pay property tax to the tax authorities of the country. Also, since owning a house makes it an inheritable asset, dividing your property among your legal heirs might create legal disputes which could go on for years.
3. Less Recurring Expenditures
When you own a house, it comes with several recurring expenditures like maintenance costs. When you own the property, then you will have to take care of yearly repairs like plumbing, seepage, getting the walls painted, etc. However, if you live in a rented house, then your only liability is to pay the monthly rent to your landlord on time, and he takes care of the regular maintenance.
Moreover, the cost of maintenance is an escalating cost. A plumber or a painter might charge a certain amount when you initially buy the house in a particular locality, but their professional charges are going to escalate year after year, and you will have to foot an ever-expanding maintenance cost.
4. Ease Of Changing Locations
You might have to change locations when you get admitted to a new University, or you join a new office. When you live in a rented house, such a change of location for work or education purposes becomes easy. However, for buying a new house at a new location, you will either have to sell your old house or give out your old house for rent. In either case, it will be a time-consuming and tedious affair.
5. Decreasing Value Of Property
When you decide to buy a house, you consider a lot of factors like the neighborhood, the infrastructure facilities, the local climate, etc., when deciding on a particular location. However, the location where you buy your property might itself undergo a lot of changes.
For instance, if the crime rate in your locality suddenly shoots up, then the cost of property in your locality will decrease rapidly. Likewise, if new infrastructure development is stalled in your locality, then the area’s job opportunities and economic growth will also be negatively affected. In this case, too, the price of a property in your locality will fall.
Although these changes are beyond your control yet, they negatively affect the value of your asset in the long term. Also, when most people buy a new home, they choose a property that is located in a developing locality because already developed areas are extremely expensive.
Hence, the future development of the locality and the consequent prices of property in that area remain uncertain for homebuyers.
6. Renting Amenities Is Easier
Renting amenities is more convenient than owning them. For instance, you want to have a swimming pool where you can go for a swim, or you might want to have a fireplace in your home. Constructing a swimming pool or a fireplace in your house or buying a house with such luxuries can be prohibitively expensive for most people.
However, renting a house with a swimming pool, a garden or a fireplace is not going to be as expensive as buying a place with these facilities.
People might consider owning a home because it gives them a sense of ownership; for some, owning property might give them a sense of achievement, or it might have a deep sentimental value for some people.
However, renting a place to stay provides numerous facilities, makes life easy, and fits into most people’s monthly budget. Renting a place to live saves a lot of time and energy, which can be used elsewhere to develop a hobby or learn a skill that can advance your career.