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There are reasons to rent instead of buying a home. This post will look at renting vs buying a house.
Buying a home is a dream for a lot of people.
Even so it’s a really really big decision.
Not one to be taken lightly.
Despite the many people who will say that buying a home is best.
This is not the case for everyone.
There are some valid reason why renting a house is better than buying one.
Check out Business Insider’s post on why renting is better than buying a home.
Let’s jump right into the renting vs buying a house situation.
1. Not Financially Stable
This is not to say that you are broke or cannot afford to buy a house.
We all know our financial situation and we know when there are issues.
Whether we admit it or not.
Maybe you have a job that depends on commissions or tips.
In this way, you may not know exactly how much you are bringing in.
Or you likely bring in different amounts each pay period based on your performance at work.
In this way, it can be hard to know how much you will make from month to month.
This doesn’t mean that you can’t buy a house if you really want to.
However, in this situation you may find that it’s a lot less stressful to just rent a house rather than buy.
2. Job Instability
If you don’t stay at one job for long, it will be somewhat difficult to get approved for a home loan.
The loan officers want to see stability in areas such as jobs and finances.
You can still find a home to rent even if you have only been at your current job for a little while.
Just make sure you have plans for how you will continue paying your bills if you are ever in-between jobs.
3. Don’t Want to Be Tied Down
One of the arguments when it comes to renting vs buying a house is that a lot of people don’t want to be tied to one place.
You are an avid traveler and you don’t want the responsibilities that come with owning a home, then you should rent instead.
There are obviously ways you can own a home and still travel the way you want to.
You could rent your home out but that’s a conversation for another post.
Renting a home can come with it’s own challenges so you may wish to avoid it altogether.
If you just want to travel the world and not be tied down to a home, rent you a house instead.
4. Want to Grow as a Family
So you can only afford a 2 bedroom house right now but you and your husband plan to have 4 children.
You’re going to need a bigger house, girl! Right?
It may be better to wait until you can afford a little more to buy a house.
In the meantime, renting a house is probably the best thing, at least for right now.
5. Not Ready for the Responsibility
Owning a home comes with a lot of responsibility.
You’re probably not ready to take on new responsibility as big as owning a home on top of all those other responsibilities.
Buying a home comes with a ton of issues that you are going to now be responsible for.
If you think you want to buy a home right now but you have a ton of other responsibilities, do your research.
Maybe you fold under pressure.
Buying a home may not be in your best interest as there is going to be a lot of pressure in owning your own home.
6. Cost of Living
Depending on where you live, the cost of living may be really high.
In places where the cost of living is higher, it is often easier to afford renting vs buying a house.
You do not want to buy a home that in reality you really can’t afford.
Now, this should be impossible given that loan officers look at your debt-to-income ratio.
However, just because you have the money doesn’t necessarily mean that you are in a good position to purchase the home that you want.
You should be able to get the home that you desire so you could probably add a new income stream and be able to comfortably afford the house of your dreams.
7. Current Neighborhood
You love your current neighborhood and can’t imagine leaving.
Unless there is a house for sale in that neighborhood, you may want to continue renting.
At least you get to stay in a neighborhood that you really like.
It could be because they have great schools, great neighbors, or you just love the atmosphere and feel of it.
This is a very good reason to continue renting vs buying a house.
8. Save Money
This is a really big one.
When you buy a home all of the maintenance and upkeep is now your responsibility.
You must pay when the air goes out, the toilet won’t flush, or the dryer breaks.
This is no one’s responsibility except for you.
Repair fees can definitely add up and amount to being a lot.
If you aren’t ready for that, then keep renting.
9. Property Taxes
Speaking of fees, you will have recurring expenses as a home owner.
One of those really big expenses will be property taxes.
Many people fail to think of this when they are considering buying a home.
This is nothing to be ignored or taken lightly.
Property taxes can add up and you’ll end up owing more depending on the size of your house.
This property tax is not taken into account when being approved for a home loan.
10. Down Payment
This is another one of those not-so-awesome things you have to consider when buying a house.
Unless you have really, really great credit you are likely going to need a pretty big down payment.
Now, if you are already making good money, it may be slightly easier for you to save up for this down payment.
With bills, and other costly responsibilities, it may not be as easy as one would think.
I know for me personally, whenever I try to save up for something, I always wound up needing the money for something that I deem important.
If you aren’t ready to try and save up a lot of money to put down on a house then renting is probably best for you.
I really hope I didn’t discourage or scare you with this post.
This is definitely not to say that buying a home is not a good idea.
Just make sure that when it’s time, buying a house is something that you research and thoroughly consider.
I don’t want my amazing readers to be misinformed or to walk into a situation blindly.
I wish you all the best in your renting vs buying a house journey!
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