why is renting sometimes considered throwing money away
One of the many hallmarks of adulthood in America is buying a home of your own. бAfter all,. And if you listen to experts (or even your know-it-all aunt), youБll never find a better time to buy than right now while the real estate market is still in recovery and interest rates remain low. But just because buying a house makes perfect sense on paper. Here are four excellent reasons to continue to rent and to ignore the experts who tell you youБre wasting your money:
1. Location, location, location ThereБs a reason why these are the three most important factors in real estate generally, the closer a home is to attractive amenities, the more expensive it will be. In many cities, that means the affordable homes are either in the suburbs or require extensive renovation. So, if living in the heart of the city and being able to walk to local shops is important to you, then youБre probably going to prefer to rent. Considering the fact that you have to be happy in your neighborhood, as well as your dwelling, this is an excellent reason to forgo home ownership for the time being. 2. More cash flow The fact of the matter is that you can often rent more home than you could buy with the same money, not to mention the amount of cash you need to have saved up for the down payment, closing costs, and ongoing maintenance issues.
If you re hoping to keep your cash available for a potential business, for ongoing education, or to weather an upcoming career change, then it makes sense to live in a rental so that your money isn t tied up when you need it. 3. A focus on simplicity Stuff tends to expand to the space allotted for it. If you prefer to live a modest and simple life, renting a smaller place than you could afford to own is a great idea. Not only does this force you to think harder about your consumption because you simply donБt have the square footage available for every gadget and gizmo that marketers want you to buy, but it also allows you to simplify your financial life. You ll be able to only worry about one housing payment per month rent and send all the money you save into investments or retirement. ItБs a win-win. 4. Mobility and this is particularly true since the housing crash. And while some renters know for a fact that their lives will be up in the air because of potential relocation or other changes, others may simply feel uncomfortable setting down roots just now. ThereБs absolutely nothing wrong with wanting the sense of freedom and mobility that renting provides. Buying a house shouldn t just be an economic decision it should also feel right for where you are in your life. , which is why it can be frustrating to hear people describe renting as Бthrowing money away.
Б Whether you rent, own, or are looking to buy, the important thing is to make your decisions based on whatБs best for you and your situation, rather than on generic advice. When do you think that renting is a good idea? б Tagged as:, Have a hangup about renting? Don't buy into these misconceptions. Renting a home can often get a bad rap. It s true that some aspects of being a renter are less thanPglamorous. The quirks of renting can range from 1980s burgundy carpet to a neighbor who loves to practice the trombone every evening for three hoursPorPa landlord whoPrefuses to take down the Holly Hobbie wallpaper in the kitchen. But it s not all bad. In fact, the number of renters is on the rise, and the traditional mindset aboutPrenting is changing rapidly. Here are three of the most common myths about renting that are ripe for debunking. 1. Youre throwing away your money Many people say giving your rent check to aPlandlord each month is like taking your money and throwing it away. While you may not be gaining equity in a home when you rent, you are paying for somewhere to call home, which is not the same thing as throwing your money in aPtrash can.
And let s not understate the value of not being responsible forP Most rentals include upkeep and repair services, and some even include the cost ofPutilities. More importantly, buying a home may not be a wise financial decision for you right now. MaybePyouPlive in a very expensive housing market, or you re unsure how long you ll stay in yourPcurrent location, or you dont have quite enough. Simply put, renting may be in yourPbest financial interest. To find out whether is more financially viable for you, there are several available to help you make an informed decision. 2. You have no negotiating power A common myth surrounding the landlord/tenant relationship assumesPthe landlord has all the power. Contrary to popular belief, renters have a lot of when they sign a lease, says Tracy Atkinson, director of global marketing and relations for Goodman Real Estate in Seattle. If you think you may be buying aPhouse soon ask, Do you have a mortgage clause? You can also ask about a job relocation clause. Simply ask, Can you work with me? Each resident has the power to do that, shePadvises. The most important thing is to read the lease in its entirety to ensure you understand what youre signing.
If you see termsPyou want adjusted, dont be afraid to ask. 3. Its difficult to get out of a lease Another common misconception aboutPrenting is that its hard to. Though its not advisable to sign a long-term lease when you know there are some life changes up ahead, sometimes life throws us a curveball. Whether you have to relocate for a job or your roommate moves out and you need to downsize, sometimes its necessary to break your lease unexpectedly. If you need to without having to pay the remainder of the lease term, one option is to. Check with your landlord or property management company to ensure that subletting is allowed, and get everything in writing from both your landlord and the new tenant. Another way to break your lease is to work with your property management company to find outPif there are any available units in the same building, at a sister property, or even in another state if you are relocating. Talking with your property manager and explaining your situation will always help you find the right solution for you, Atkinson says. Of course, there may be fees associated with breaking your lease no matter how you choose to go about it, so be prepared for that. Looking for more information about renting? Check out our. P Related:
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