When making the decision between buying vs. renting here are some financial reasons that might sway you to remain a renter.
- Maintenance. Leaky roof, not your responsibility. Refrigerator goes on the fritz, not your responsibility. There are no maintenance or repair bills that will come out of your pocket when you are a renter.
- Taxes. Oak Park headlines always bemoan real estate taxes. They are not cheap here in our fair village but as a renter you do not need to worry about that bi-annual tax shocker – your landlord holds that responsibility! Yes, you have some responsibility for real estate taxes but your portion is built into your monthly rent cost and that cost is shared with other tenants.
- Deposit. Renter’s generally only need to put down one month’s rent as a security deposit when signing a lease vs. 5% to 10% of the total value of the home purchase when you buy. So if the home you are interested in buying is $200,000 you will need to have at least $10,000 to $20,000 saved for a down payment.
- Flexibility. You can move without too much of a hassle. You are offered an amazing job opportunity in another state, your neighbors are noisy, you find an apartment that is closer to your job or you simply want a change of scenery – your lease is only 12 months, allowing you the flexibility to relocate without the stress of selling a home.
Owning a home has benefits. It may make sense for people at different stages in you life – when you have a growing family or are in a stable job situation but renting, especially when the economy is shaky can be a better financial choice in the long run.