Renting has its perks; they’re obvious from a glance. You don’t have to drop a lot of money to purchase land, your repairs are free, and you can move whenever you want to. For many people, this is enough to convince them, and they don’t have to consider it any further than that. Unfortunately, renting isn’t all it’s cracked up to be. If you’re on the fence, asking yourself, “Should I rent or buy a house?” consider these issues that might make renting the less affordable option.
Rent Can Rise In Cost
Unless you live in an apartment that’s locked in on the rate, rent does rise eventually. It may seem small, a couple hundred here or there, but that can add up quickly in the long term. When you own your home, the price stays the same except for the property tax, and you know what to expect.
Landlords May Sell
A landlord can sell their property at any time without breaking the leasing agreement, as long as the new owner lets you stay on the land until the contract is up. There’s no way to guarantee that you’ll be able to rent for longer than your year or two-year lease, and that kind of unpredictability can be scary. As easy as it is for you to move, it’s just as easy for your landlord to sell and never look back.
Neighbors Through the Walls
A drawback of renting is your peace of mind. If you’re renting in a complex, you have to deal with the noises around you at all times. Slamming doors, kids running up and down halls and stairs, neighbors stomping around above you, someone next door getting in a loud fight with their roommate: it’s constant noise. Although you may feel safer knowing someone will be able to hear you if anything happens, it’s not much of a trade off for how much you have to hear of them.
Often Higher Than Mortgage Costs
This fact blows many peoples’ minds the first time they hear it, but renting can often be more expensive than having to pay off a mortgage. A mortgage spread out over thirty years can make the prices low per month. Meanwhile, a landlord is just trying to profit while also paying off the property mortgage on the land that’s being rented out. In the end, the renter is both paying the mortgage and also not gaining any equity from it.
The lack of equity gain from renting can be terrifying to think about. Not only are you pouring a lot of your money into someone else’s mortgage, but you’ll also never see a cent of it ever again. When you buy a house, you can eventually sell it again- and your mortgage payments will have a return for the money and time you put into the property. Rent payments may keep the roof over your head for the month, but you could rent there for thirty years and never own the place.