Unless you’ve been living under a rock, you’ll have noticed that house prices continue to soar. As a result, more and more people are asking whether they should just keep renting indefinitely. After all, most people don’t want to be saddled with a huge mortgage. And even if they do, they know that there’s a chance they won’t be able to pay it back.
On the plus side, renting has improved a lot over the last couple of decades. Rental properties are now of a much higher quality than they used to be. And they tend to be cheaper than buying a house outright.
No Big Down Payment
Big down payments are the bane of property-seekers’ lives. They have to spend years saving up a big lump of money, making all kinds of sacrifices. But for renters, the burden is much smaller. The average deposit on a rental agreement is about one and a half times the monthly rental cost. That means that renting is both affordable and easy to do. Plus, once you leave rented accommodation, you get your deposit back (provided you didn’t trash the place).
Fluctuating prices are a big issue for many homeowners. Mortgage interest rates can go up and as well as down. Taxes on properties that you own can vary too. And it all means that managing a mortgage can be difficult. Renting, however, is far easier. Prices are fixed right at the start of the contract. And though landlords may increase the rent between contract periods, you can plan for this.
It’s Easy To Move
Moving to a house is a big ordeal. In fact, it’s so complicated a transaction that you need lawyers, surveyors and estate agents to make it happen. That means a lot of paperwork and a lot of hassle.
But renting is far easier. The only question you really have to ask when renting is: “is there an estate agents near me?” The rest is quite straightforward.
In many countries property taxes are sky high. That means that homeowners often have to fork out large sums of money, especially if their homes go up in value.
Plus, property tax law tends to be overwhelmingly complicated. Homeowners often have to shell out on accountants fees. Renters, of course, don’t face this risk. All of the burdens of organizing taxes gets passed onto the landlord.
Easy To Downsize
The great thing about renting is that you’re never locked into renting a single place for a long period of time. Whereas the cost of moving home is enormous, the cost of taking on a new rent is generally low. Usually, it’s just the cost of the estate agent’s fees, plus the deposit if you’re renting for the first time.
Although you may ultimately want to own your own house, it’s important to know that you’re not necessarily worse off renting. Of course, it’s not just a financial calculation at the end of the day. It’s about quality of life too. And this is where renting can shine.