As an adult, you may feel it's time to stop renting and buy your own place. Many people dream of owning a own home. They can decorate the house, earn equity, plus buying provides a measure of stability.
Although buying might be the American way, there are seven reasons why renting is way more awesome than buying.
1. You Won't Drain Your Savings Account
You worked hard to build your savings account. And unfortunately, buying a home can wipe out your account. Anyone who purchases should expect to spend money out of pocket. This includes cash for a down payment and closing costs. It might take five years to save $10,000, yet one purchase can completely drain everything in your account.
2. Allows Time to Improve Your Credit
You don't need perfect credit to buy a house. Most lenders will approve your application as long as you have at least a 680 or higher credit score, and you can get an FHA home loan with a credit score as low as 500. But if you postpone buying and use this time to increase your credit, you'll qualify for the best rates, which helps lower monthly payments. Borrowers with credit scores 740 or higher typically qualify for the most favorable rates.
3. You Can Ditch Your Gym Membership
After a little research, I found gym memberships can range from $29/month to $50/month, depending on where you live. If you move into an apartment complex with an on-site gym, you can ditch your gym membership and save each month. The money you save can go toward paying the rent.
4. You'll Never Spend a Dime on Repairs
Homeownership has its pros and cons. And one of the biggest cons is spending your hard-earned money on maintenance and repairs. As a renter, all you have to do is give your landlord a call and he's responsible for maintaining the property. It's a major perk, especially since homes eventually need new windows, a new roof, a new air-conditioning unit, which can cost thousands of dollars – money you might not have.
5. You Can Come and Go – at Least Every 12 Months
When you buy a house, you can't move as easily as renting. With homeownership, you have to sell the house and pray you find a borrower willing to pay what you need. As a renter, you can choose a short-term or long-term lease. At the end of your lease, give your landlord a 30-day notice and you're free to leave.
6. Built-in Security
If you're concerned with safety, especially if you live alone, moving into an apartment complex with security features can provide peace of mind. Some gated apartment complexes require a code for entry. Additionally, some apartment complexes have doors that require a code for entry into a building. This can reduce the risk of theft and solicitors.
7. On-site Rec Center
Some apartment complexes have on-site recreational centers. These include a coffee station, sitting areas, pool tables, a swimming pool, a hot tub and party rooms. Some complexes even host parties for residents. Depending on the amenities, apartment living might be the equivalent of living at a resort full-time.
Ultimately, you have to choose the living situation that's right for you. Why do you think renting is more awesome than buying?