Individuals planning to reside in a particular location are often faced with a dilemma – whether to buy a home or to rent it. Owning a home has its own advantages, but it’s worthwhile to think about the advantages of renting a home rather than buying it.
Save your down payment money - Very few individuals buy their homes by paying a cash amount. People go in for housing loans to buy their homes. A housing loan typically involves a certain percentage of their loan amount to be paid in advance in terms of a “down payment”. In these troubled economic conditions, most banks and credit lending companies demand a significant amount in the form of a down payment. The individual has the advantage of owning his or her home after the entire loan amount is repaid, but in the mean time, he or she is obliged to pay the monthly installments. This can prove to be a financial burden during the tenure of the housing loan. You can save the much needed loan down payment amount if you decide to rent your home rather than buying it. Instead, you could invest that amount and earn interest out of it.
Avoid maintenance worries - In a rented home, it’s the homeowner’s responsibility to take care of the maintenance aspects associated with the rented home, and cater to it in a timely manner. This can help in saving a significant amount of money in terms of maintenance costs, especially if your rented home is not so new and requires maintenance from time to time. This can make your home rental affordable since you’re not required to keep some amount aside for maintenance purposes from your monthly budget. You also save time and efforts by passing over the maintenance related issues to your homeowner.
Avail free amenities - At times condominiums, apartments, and townhouse communities provide facilities such as gyms, swimming pools, meeting places, etc. along with the rented premises. Usually these types of amenities are offered free of cost in the rental contract and the renter is not required to pay any extra amount to utilize such amenities. This can help the tenant in saving money, as well as benefiting from the advantages offered by the amenities.
Improve your living standards - In most cities, it’s much affordable to rent a home rather than buying it. The renter has several choices and options in terms of rented residences – homes having lesser rentals, condominiums or apartments in a particular location, homes having certain facilities and amenities, homes nearer to the work place, etc. Above all, the major advantage the renter has is in terms of his or her mobility. If the tenant changes work, or decides to reallocate to a different city, he or she can do so with much ease and convenience. It becomes very easy to save money on a monthly basis by deciding upon a home with affordable rent that suits your budget. You end up improving your living standards by utilizing the amount saved in buying a better car, or buying a much needed commodity item that can be of use to you and your family.
Get free facilities - Many homeowners waive basic utility charges related to electricity, gas, water, and even Wi-Fi in their rental agreements to attract potential tenants, especially if they are stuck up with untenanted homes, or if their homes are located in places which are not easily accessible. Saving small amounts in terms of utility charges can go a long way in making your stay more affordable and feasible.
Image Credit - mandiberg