People like to say that renting is throwing your money away. We have all heard this, but there always seems to be circumstances that prove this and other renting myths wrong.
Let us start with the above mentioned myth of throwing your money away. People who are young in their career or move with their career might think otherwise. One third of home buyers move within five years of purchase – which is often times before they are beginning to build equity. The closing costs and fees alone begin to add up for frequent movers.
Maintenance costs on a house can turn you off to home buying. With renting you don’t worry about how much it will cost to get your heat fixed. You call and get it fixed. Unless something is an obvious problem you created, you are not the one who pays.
You can find a mortgage for less than rent. Add utilities, regular maintenance, landscaping, etc. and you may start to rethink that statement. Some rent will include partial or all utilities – those are pretty easy to budget for instead of guessing the cost of utilities and expenses. Don’t forget the possibility of taxes increasing.
A house is an investment. This also can backfire. People are finding property values can decrease and leave you upside down in your investment. Unless you plan to purchase and stay, renting in a down market has its advantages!