Debating whether to rent or buy a house can be a daunting task. All of the advantages of buying a home are, of course, advertised heavily in the media. But, what about the benefits of renting a house?
In the beginning, your monthly rent will be lower than a monthly mortgage payment for the same home. A typical mortgage loan includes much of the interest payments at the beginning of the loan and less by the end of the loan. If you are renting, you can view it as simply paying the principal.
If you are young and think your personal or professional situation may change within the next five or ten years, it is more advantageous to rent. Having to sell a home after owning it for such a short period may likely mean that you will lose money on the sale.
While renting, you can continue to save for a down payment on a house. If you rent for five years and invest your savings in slightly longer investments like CD accounts, you can have quite the nest egg when you are ready to buy.
Finally, you won’t have to worry about costly repairs while you are renting. Expensive items such as new roofs, plumbing repairs, and electrical repairs are still covered by the landlord. In some instances, you may not even be responsible for mowing the yard!
