Renting a home provides a greater deal of financial and logistical flexibility than owning a home. For people looking for a reliable budget in terms of fixed costs, renting prevents some unwanted surprises, such as the need for a new roof or hot water heater, from imposing a financial burden.Continue Reading
The decision of whether to rent or own a home depends on one's long-term financial plan. If owning a home requires budget changes that compromise savings goals or push expenses closer to one's limits, renting is a better idea than owning a home. If the rent is less than a mortgage payment, the tenant has more cash each month to spend or save. The tenant is also typically free from the costs of upkeep. If the air conditioner goes out in the middle of a hot month, for instance, the landlord is responsible for repair costs.
People not tied down by family connections or long-term employment often choose to rent in order to make relocation less of a hassle. Paying for a re-letting fee in the middle of a lease is often less expensive than having to sell a house in a hurry. Owning a home is a major financial and personal commitment beyond that of signing a lease.Learn more about Insurance