The conventional wisdom that buying is better than renting may not be so conventional anymore. Sure, even with recent tax law changes, there can be tax benefits to owning. And, yes, we here in the U.S. benefit from government subsidized long term mortgages. Nonetheless, deciding to rent a home rather than buy can make a lot of sense.
Recent generations change jobs more often than baby boomers. Want to be nimble so you can jump on that next great job opportunity? Renting might be the right way to go. Buying and selling a home takes time and involves all kinds of transactions expenses (think realtors, title companies, settlement agents, home inspections and repairs).
Think owning a home is a good investment? Maybe. But people often failed to consider how else they might have invested their down payment if they’d chosen to rent. While homes historically have appreciated on average 3% per year, that is not true for every year and in every market. Housing prices can and do decline both in nominal terms and real terms (after taking into account inflation).
Want to keep it simple? If you rent and the roof leaks, you call the landlord. If you rent, you don’t deal with paying for property taxes, contesting property taxes, shopping for and making decision on insurance, or handling ongoing maintenance.
The most common choice in the past was: rent an apartment or buy a house. Not anymore. Over the past decade, the number of single-family homes for rent nearly has doubled. An increasing number of Americans now can enjoy many of the benefits of living in a house without the headaches of owning one.
More posts by CEO Jeff Ball: Financing Challenges for Vacation or Short-Term Rentals, Financing a Short-term Rental (Vacation) Property