Renting: Pros & Cons

We’ve discussed home-buying, we’ve discussed whether you should be looking into new or old homes, we’ve even discussed when you should be looking for a home. Despite this, we have yet to discuss the road many of you may take – renting. Home-buying isn’t for everyone, renting isn’t either, but it may be what works for you. With that in mind, I’ve put together a list of pros & cons you should be aware of before you investigate renting a property.

This applies for first-time renters to the most experienced renters out there. Knowledge is power and it’s always good to know exactly what you’re getting yourself into when you rent a home.

Pros:

1. Renting may be cheaper than mortgage payments – With renting, you’re not paying off the property, you’re paying to stay on it temporarily. It’s very likely that you’d pay far less renting the property than paying it off.
2. Free Attached Amenities – Rented properties often give you the amenities – one’s you might’ve had to repair and upgrade yourself if you were buying – for free, or at a discounted rate than mortgaging.
3. Freedom to Move – While your lease may limit how much freedom you have to change or move locations, there’s no doubt that you’ll have much more freedom when it comes to you and your family’s location, environment, and amenities, with a rented property over a mortgaged property.
4. Money Can Be Saved – Again, renting may be significantly cheaper. This can allow you and your family to save up for a special vacation, retirement, or you could save up to own the home you’re renting. The decision is yours.

Cons:

1. No Returns – When you’re renting, you’re tied down with a lease. Not to mention, the money you sink into rent cannot be refinanced or returned.
2. Long-term Payments – Hypothetically, you could pay rent for as long as you live. You will never hit a point where the rent is paid off.
3. At Mercy of Landlord – If your landlord isn’t the kindest person in the world, you could be at mercy of dealing with a hellish environment.
4. Ultimately Temporary – You can stay in a rented home for years, but that doesn’t mean that home is really yours. If you move and suddenly decide to return to that same rented property, there’s no legal obligation to give it back to you. It is a rented space that goes to the highest bidder.

Now we know the pros & cons of renting a home, but in our final part of this three-part series, we’ll be discussing the genuine pros & cons of owning your home. All of this to make sure you’re making the best decision for you, your family, and YOUR FUTURE.