As the interest rates are at their record low levels, it is surprising enough that many people still find renting to be a more pocket-friendly option than counting monthly mortgage installments. Though this isn’t true in all parts of the US, yet a study revealed by Robert W. Baird & Co. tells that residing in one of the biggest housing markets of the country is often comes with an exorbitant price. The study took into account 28 different cities and then found out that US homeowners in 24 cities paid much more as compared to those who rent. On an average, people who owned homes paid 28% more in monthly mortgage payments than what renters had to pay in the form of monthly rent.
Citizens in the US share a lifelong goal of homeownership but with the recent statistics, it is seen that people often opt for renting rather than counting a lump sum as monthly mortgage payments. What may be the probable reasons behind this shift in trend? Let’s check out.
- Not having to pay for repair bills or maintenance costs
A definite and prominent advantage which renters can boast of as compared to homeowners is that they don’t have to pay any repair costs or bear any maintenance costs. When you’re staying in a rented property, the person who is liable to pay for maintenance and repair costs is your landlord. If one fine day your roof starts leaking or some kitchen appliance gets spoiled, it’s not your financial obligation to get them fixed. On the contrary, homeowners are the ones who are responsible for maintenance, repair and costs on renovation. Such costs can sometimes get too expensive.
- Getting easy access to facilities and amenities
One more financial benefit of renting a house rather than buying it is that you have easy access to all kinds of facilities and amenities that could have turned into a hefty expense. Luxury facilities like a pool and a fitness gym are the 2 standard amenities which come with any upscale or midscale apartments without charging a dime from the tenants. On the contrary, when a homeowner wishes to get these amenities, he would have to pay a fat amount on installation costs.
- Not having to pay homeowners taxes
The most praiseworthy benefit which renters have is that they are not liable to pay taxes to Uncle Sam which can indeed be a weighty hardship for the homeowners. Calculating your property taxes can also be a complicating affair, but they’re usually determined as according to the predicted price of your property. As houses nowadays are getting bigger and bigger, taxes levied on your property can definitely be a considerable burden.
- No requirement of a huge downpayment
One more area where renters are better off financially is during signing the loan agreement. Homeowners who take out mortgage loans are required to make a big downpayment on the loan. But you don’t need to worry about these payments when you move into a rented property. Although the exact money which you need to move into a rented apartment varies, the total amount is considerably less than what you would need to purchase a house.
Keeping the long term in mind, owning a home may be beneficial for American citizens, but for many people renting is a better choice anytime. There are plenty of examples which tell us how renting can save you an adequate amount of money. However, the choice to rent or buy a home is definitely a personal one.