More Reasons to Rent a House Instead of Buying a Home
(If you haven’t read the first list of reasons to rent a house instead of buying a home, click on the link.)
No Credit
It’s not always easy buying a home when you’re newly married, have very little in the bank, and have no credit. Some banks will refuse to take you on. As a landlord, though, I’ve rented to young marrieds who had no credit at all and it was a good experience for them, and built up their credit.
Catastrophic Weather Conditions
Like living life in the fast lane? Thinking you want to have a home in Tornado Alley? We’re not recommending it, but if the area where you want to live is in a tornado, hurricane, or flood zone, there might be less financial risk if you rent a house instead of buying a home.
Down Payment Woes
It usually costs less money to get into a rental than to buy a home. Although some sellers will require 0% down, that doesn’t happen all the time. And there are closing costs, title insurance and PMI to pay. Landlords, however, usually require a deposit that is far less than a down payment on a home, and then first and last month’s rent up front.
Interest Rates
Although interest rates might be low today, there’s no telling what tomorrow, or next year, may bring. When you’re ready to buy a home, if interest rates are high, it might be more practical to rent for a year or two … until mortgage rates drop down again.
Absence of Litigation
What if a burglar climbs on your roof and falls down the chimney? Or a tree keels over on your neighbor’s prize chickens? Usually, you are responsible for insurance on your own possessions when renting, however, it’s typically your landlord’s responsibility when it comes to accidents on the property that are no fault of yours. And that’s something to consider when trying to decide between renting and buying.
There are many reasons to rent a house instead of buying a home, and after reading these, you’ve probably thought of a few of your own. Regardless of whether you feel renting is for you, or you’re bent on buying a home, you’ll be better prepared for having thought it through.
Sources
Personal experience as a landlord.
More from this author
Ways to Keep a Light Bulb from Sticking in the Socket
Fall Garden Preparation
Five Reasons to Use an Oil-Filled Space Heater
