One of the most common pieces of financial advice always seems to be that you should invest in a home as soon as possible. It’s a huge financial step into the world of adulthood, and the profit you’ll make from eventually selling it off will make it all worthwhile. Owning a home is the definition of financial stability, they say. And they’re wrong. Owning a house is not only not necessary, it’s mostly impractical. And here’s a list of reasons to prove it.
Renting Keeps You FlexibleWhile you rent on a contract, that contract is much more flexible about allowing you to pick up and move whenever you want or need to. If you’re suddenly making more money than you were before and would like to move to a nicer place, or if you get a new job and want to move somewhere closer to the office, you generally can at your leisure. You may have to pay a fee to end the contract early or wait for it to end, but most contracts are for six to twelve months so you wouldn’t have to wait too terribly long. A house isn’t quite so simple. Selling a home can take a long, long time. Much longer than six to twelve months. Selling your home and relocating to a new home is a headache and a half, so why buy?
Free Repair Service
When you’re renting and a pipe bursts, you dial up your landlord and they send someone over to patch up the damage. If your stove dies or your neighbors punch a hole in your wall, the onus is on the landlord to fix it all up. Guess who gets to take that over when you own? You either become a jack of all fix it trades or shell out the cash to pay a professional to take care if it all for you. Replacing a dead refrigerator can cost you thousands of dollars when you’re on your own. When you’re renting all it costs you is a phone call.
Owning A Home Is Pretty ExpensiveIt’s true that when you rent you’re throwing your money out for good. You aren’t investing in anything, and you’re never going to get that money back in any capacity. But you do that when you own a home, too, on taxes. You’ll ay property taxes, home owners association dues, condo fees, and whatever else is specific for the area you live in and the type of residence you have. You never see that money again; it doesn’t go to some investment like a mortgage does. Just like renting, it’s been thrown out for good.
Renter’s Insurance Is Way Cheaper
When shopping for home insurance, you’ll notice that renters insurance is far less expensive than home owners insurance tends to run. For example, you can pick up renters insurance for as low as $10 a month depending on where you live and the size of your space, and I dare you to find home owners insurance at the same price per square foot. Odds are good that you’re looking at $60-70 a month minimum there, and that difference can add up.