If you want to get a new home you have two options: you can either buy or rent. There are plenty of choices on the market for each option, but these days it makes more sense to rent your next home.
You might be thinking that it's a better idea to buy a house. After all; bricks and mortar is a classic way to invest your money, right? Well, that might have been the case some years ago. These days, it's much tougher to get a home loan and buy a property.
You may have seen in recent posts how we had to move in 30 days because our landlord sold our house. We thought about buying a house but decided renting another one was a better idea. Are you unsure whether buying or renting is right for you? Let me share with you five reasons why you ought to consider a rental house instead:
1. You don't need to save up a hefty deposit
If you want to buy a house, you would usually have to borrow the money. That also means you'll need to put a cash deposit down towards your future home. You would often have to put up at least 10-20%, whereas the deposit for a rental home is much less.
In fact, you would usually only need to put up a month's rent as your deposit!
2. You don't have to worry about expensive repairs
When you are a homeowner, you handle all repair work - regardless of the cost. As you can imagine, you could face four or even five-figure sums for major repairs to your house.
As a tenant in a rental home, your landlord has to cover such repair costs. All you have to do is make sure you maintain everything in the property as best you can.
3. It's cheaper to rent a nice house than to buy one
Most people want to live in a modern house in a safe area. The trouble is, you'd have to pay a premium to buy such a property!
But, when you rent instead, the costs are more bearable. Rental properties are often more affordable per month than a mortgage on a house you own.
4. You can move into a rental home sooner
Let's say that you've only got a small time frame to move into a new house. It's quicker to find and move into a rental property than it is to buy one. That's because you have to spend time negotiating with sellers, lawyers and other people.
5. You aren't stuck at your house for the next 25 years
The major downside to buying a house is that you're stuck with it for a long period. That is, unless you find someone to buy it from you. Even if you find a buyer, there's no guarantee you'll make a profit on your investment.
As a tenant, you can agree short-term lets if you wish. So, now you can see why I find renting my home a more attractive proposition!