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Renting vs Owning A Home
People need a place to live, and this usually requires money. Being able to afford your own home is convenient for those who have a family, or those who just want to stay in one location for a very long time. However, some of us move around quite a bit and/or change jobs every few years, so being saddled with a mortgage would not be a viable option. Do you really want to buy a house and then go through the hassle of moving if a job does work out? Imagine the costs of having to move or deciding to rent or sell your house while before relocating. Some people are not even able to sell their houses and have to relocate anyway, which puts a considerable burden on an already strained family. Think of the expenses involved with moving a large house full of furniture can become costly than moving a small amount of furniture from an apartment. With the high mortgages payments and the subprime lending crisis, many people have decided renting is an easier and cheaper option. This hub will discuss five reasons why renting may be a good option right now.
1. I Change My Job Every Several Years
In my grandparents and even to some extent in my parents' generation people were more likely to stay with one company their entire lives. However, today people are more likely to change careers every few years and have several careers over their lifetime. Since I graduated from college I have had several jobs and moved several times, so owning house has not been a viable option during this period of my life. Thus, if you think you may be changing job or relocating over the next several years, it may be wise to consider to forgo buying a house. Ask yourself these questions:
- Will buying a house make my life easier?
- Will I want to sell my house if I have to quit my job and relocate?
2. My Income is Not Large Enough To Cover A Mortgage Payment
What if your income is not large enough to make the mortgage payment? Many people work several jobs to cover a mortgage payment, but what happens if the cash flow is still too low? When my parents first moved to California in the early seventies homes were very affordable, but today even a modest home can cost a million dollars in certain parts of Southern California. Is it worth it if you are slaving away 24/7 only to find out you will lose this house anyway? Here are a few questions to ask yourself:
- Am I making enough to cover this mortgage or is it eating me alive?
- Should I wait until I have a higher paying salary to buy a home?
3. Does My Family Need To Own A Home To Be Happy?
Does your family need to own a home to be happy? Not necessarily and many families are happy renting until home ownership becomes a better option. In our apartment complex most of the events are geared towards families such as the walking club, Easter egg hunts, family dinner night, Mother's Day Tea, and Father's Day Craft Time. Actually there are more events in our complex for families and single people might feel a little left out. During the fires in Southern California in October 2007 my family stayed with us and it was very crowded because my mom, my other sister, her husband, and my niece and nephew were here. However, for the first time I actually went to the little miniature park in our complex and my niece and nephew had a great time playing with the other kids from our apartment community. If I had still been a child I might have been a little jealous because I never had that many kids to play with living in a house that was situated in isolated rural community. I saw parents hanging out and talking about their kids issues, which is a great support system that people may not have if they are living alone in a house.
Yes people can take their kids to the park, but when there is a mini park in the apartment complex parents are more likely to go and see other parents more often. Also, family oriented activities kept my niece and nephew entertained, so during that week they were not as upset about the fire. People from the condo complex across the street from us bring their kids over to the mini park all the time because the home owners' association does not offer anything like that over there. Seeing all the happy kids in the complex playing at the mini park is evidence enough for me that living in a complex with a family can be a very good thing.
4. Where Will You Go Swimming This Summer?
Where will you go swimming this summer? Just the other day someone was complaining about how it costs $450 dollars to buy a membership for family access to the local pool. However, if you live in an apartment complex there is often a pool that is free for everyone to use, which is much cheaper than paying an annual membership. If a home owner has a pool it often takes a large amount of money and time to maintain, so often it is nice to be able to take a book to the pool and know I do not have that responsibility. Also, our apartment complex has tennis courts, a club house, and a workout room, which saves on the price of belonging to a local gym. Thus, there are many amenities to be had by living at an apartment complex.
5. Living In An Apartment Can Be Cheaper In The Long Run
If people live in a place where houses are reasonable this may not be an issue, but with the cost of California mortgage rates it is often cheaper to rent an apartment if you have a roommate. My sister and I only pay about a thousand dollars per month and our unit has a washer and dryer, dishwasher, and little patio, so we have a home like setting and do not have to pay a large house payment. If you buy a new house and you have to pay for new appliances or repair bills this can become expensive. Also, if your home need extensive repairs then a large amount of money and time will be invested in making this house look beautiful. Our unit has had its issues such as a running toilet and a washer that overfloaded, but the apartment maintenance team came and fixed these issues free of charge. When a home owner's washing machine exploads it may cost near two thousand dollars to have special fans brough in to dry the carpet, but we did not have to pay this rental fee since we lived in an apartment complex. I am not putting down home ownership, I am just saying there are perks to renting and it actually can be cheaper if you move quite often and it certain locations such as southern California. Also, I am glad I do not have to pay for those frequent maintenance repairs that home owners will have to take a care of on their own.
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Renting Is For Those Who Want To Invest Their Time And Money In Other Things
I love to paint, draw, read books, and eventually I am saving to go on another trip to Hawaii. If I was a home owner I would not be able to spend my money on these types of purchases. Also, not owning a home means I have free time to write and pursue hobbies, so right now in this part of my life it perfectly meets my needs. It is good to consider whether home ownership will make your life easier or harder, and at this time in my life I am happier renting. Eventually I may consider buying a small condo, but home ownership would require a financial and time investment that would make me unhappy. Thus, I would like to argue home ownerships does not always equal happiness.
Things To Remember: Before signing a lease make sure you understand what you are signing. Do not agree to a one year lease if you think you may move out within the year. Leasing an apartment is entering into a legal contract, so make sure to consult with professional consul or ask trusted family members before signing a lease.