To rent or to buy? This is a common question many people contemplate when looking for a new place to call home. Although you may dream of owning a home, there are some unique benefits associated with renting to consider, especially when it comes to cost-savings.
Minimal maintenance costs
When you rent a property, the landlord order property management company is responsible for maintenance and repairs. If there’s a leak or something breaks, it’s on them to shell out the money to fix it. If you own the home and you’re not prepared to do the work yourself, the cost of maintenance and repairs can add up fast.
You don’t have to pay real estate tax
Paying real estate tax is another responsibility of the homeowner that the renter gets to avoid. Depending on your location, the cost of these taxes can be quite high. There are many factors that determine the cost of real estate tax, but it’s safe to assume that the bigger the home and the more desirable the location, the higher the tax amount will be.
Avoid down payment and closing fees
Most people don’t realize just how many upfront costs are associated with buying a home. In addition to putting down a sizable down payment (ideally 20%), attorney fees, realtor fees and many other various fees add up to thousands of dollars in closing costs. Although you’ll have to put down a security deposit when you rent, you’ll likely get that money back when you move out. When you buy, you don’t get those upfront costs back, and they tend to be significantly higher.