Why renting is not a waste of money?
Why renting is not a waste of money? Is renting really a complete waste of money? You have heard
All the saying If you are renting you are just throwing your money. Did someone ever make you feel guilty for not buying a house? And let me guess: they said something like, “ugh, living in a rental house is not good, owning the house is far better!”.
But the fact is, it is not at all true!
First, let me ask you a simple question: Do you “throw money away” when you book a cab? Of course not. You are paying for value, you are getting a ride, and it’s a service you are getting after paying. Right? Yet somehow this logic falls apart when you apply it to renting. I mean when you rent you are not throwing your money away you are actually getting something in return for your money, a place to live in. So renting a place to stay is a service as well.
Here’s how renting is NOT a complete waste of money.
There are four reasons that tell why one should consider renting instead of buying:
Let’s dive in!
Why renting is not a waste of money? (Renting is flexible) – When you migrate because of your job then renting is a way to go. When you rent you might be on lease for a year or two. But if you need to terminate your lease early you just have to pay an early move-out penalty then you are free to go.
Meanwhile, when you own a house, the process of moving is much more difficult and time-consuming. Sure you will make money, but if flexibility is what you need in life then renting is a great option to choose.
Why renting is not a waste of money? (Renting is more affordable) – “Renting a house is more expensive than buying it”. If you think it’s right, then you are wrong. Because when you buy a house it includes no. of costs like property tax, minor home repair, private mortgage insurance (if your down payment is less than 20%), landscaping, and closing cost.
On the other hand, in renting all of the expenses you will have to pay upfront will be laid out in your lease.
Why renting is not a waste of money? (Renting comes with less stress and less responsibility) – When you own a house the owner is responsible for all maintenance and repairs. Tenants aren’t responsible for maintaining the property hence, it is not stressful.
Why renting is not a waste of money? (Renting includes less risk) – When you take a mortgage, you are bringing some financial risk in your life. You are adding a large amount of debt to your life. So, if the idea of debt makes you uncomfortable, then you should consider renting. Since renting doesn’t require you to take debt, it is much less risky.
Access to amenities: Many rental properties come with access to amenities such as a swimming pool, fitness center, or communal areas that you may not be able to afford with a purchased property.
Final thoughts
Renting can be a more beneficial option. If you are not prepared for the financial responsibilities of owning, it is a wise decision to make; not a waste of money.
You can consider your monthly housing expenses (whether you pay rent or mortgage) to be your payments for a place to live in. Renting is not a waste of money as long as you are also able to save money to afford your life now and then in the future.
