While you may think that owning a home is a good idea, there are many advantages of renting rather than buying.
1. No long term commitment
When you rent, you do not have a long-term commitment. You have the flexibility to move at the end of your lease term. If you bought a home you might be on the hook for months (or years) before the home sells and you may have to pass up a career advancement opportunity in another state.
2. No property tax
As a renter, your rent is locked in for the term of your lease, so regardless of fluctuating expenses elsewhere; your budget remains the same.
3. No maintenance or repair costs
When you rent, your landlord handles the cost of repairs along with indoor and outdoor maintenance. This can be a nice change of pace when considering the alternative. Think about it, landlords are responsible for the up keep of the property such as lawn mowing, cleaning the gutters, painting, shoveling snow, roof and chimney maintenance, furnace and water heater expenses. If a major appliance such as your stove, refrigerator or dishwasher breaks down all you need to do is call the maintenance hotline. Renters have the advantage of leaving these chores to the Landlord. Its easy living!
4. More affordable
It is cheaper to rent an apartment. If you are renting a 1bedroom apartment for $2400 per month, that same home, with a price tag of $400,000 will cost you a down payment of $80,000 up front! Don’t forget to factor in taxes and insurance.
If you really want to invest in something, take the difference between your rent and the mortgage and invest in the your 401k , 529 college savings fund, Roth IRA, Bonds etc.
5. Heat and Hot Water included
Many landlords will include the heat and hot water in the rent. So you do not need to worry about the extra bill.
6. Luxury Living
You may not be able to afford to buy that fancy apartment in a luxury building that offers incredible views of the city but you can always rent it!
Many apartment communities come with big perks! They offer resort style swimming pools, roof decks, internet café, concierge, door man, valet service and the list goes on. As a renter, there is no condo fee!