There are some very tough dichotomies we face as people in the world. Coke or Pepsi, Mac or PC, dine-in or carryout, and the big one, renting or buying. When it comes to things like furniture and appliances, the jury has long been in. Buying is exceedingly better than renting. Though when it comes to actual homes and flats, many remain truly undecided.
So, which is really better – renting or buying? Throughout this article, you will read why renting is far more practical. “Better” is relative and wholly subjective, but there are many objective categories wherein renting simply trumps buying by a long shot.
Why renters might have easier lives?
1: No creditors hassling you
Taking out a home lone puts you on the hook for all types of mortgage regulations and creditors that will be ringing and knocking constantly in an attempt to get more of their money at a quicker pace. Taking out a mortgage also requires a stroke of luck to an extent. Unless you have a picturesque credit score, you’ll never receive fair terms – if you receive a mortgage at all. Having to come up with a lump sum to buy is exponentially more difficult than renting.
2: More rules in your favor
As a tenant in someone’s property, you don’t exactly have the breadth of property law on your side per se. One thing about first-world nations: The rules favor money. However, you still have more legal recourse than a homeowner in one really important category. When it comes to late payments, evictions, bad treatment, etc, big banks can get away with anything, whereas you stand a fighting chance against landlords.
3: Landlords’ responsibilities
Your responsibilities as a renter for things like damage restoration are basically nonexistent, unless you have caused the damage through negligence. Though if you’re just a resident in someone’s property and the pipe bursts, the ceiling caves in, the electric fails, etc, then the landlord is on the hook for the repairs. The landlord must cover the costs financially and must make timely repairs.
4: Opting out is easier
Not that renters should break their lease, but if they wanted to, they could do it a lot easier than a homeowner could get out of a mortgage contract (which will rarely happen). If you own a home and decide to move to a new home, there’s so much you have to consider. You still have to cover the mortgage payments. You’ll have to sell the home in hopes of repaying it, or sell back to the lender at a discount and still be on the hook. And unless you tie up those loose ends, you’ll be paying for the full term of your contract. You could go into default, of course, and just let the lender take the home, but then your credit is ruined for life. You won’t even be able to get department store credit.
As a renter, as soon as your lease is up, you’re off the hook. Most landlords will let you pack up and leave at any time, too, as long as you eat the security deposit, which is small change compared to what owners go through.
5: Move-in ready options
When you’re looking at homes and flats, you’ll usually see a stark contrast. Though it’s not always the case, more flats (and smaller homes with rent options) are furnished, fixed up, and are ready for you to move right in. At the most, you may have to bring a furniture suite along with you. Homes, on the other hand, typically need more work, more furnishing, and more nips and tucks before they’re ready.
This article doesn’t settle the debate. You may still find that actually owning a home is right for you, especially if you’re looking to start a family, invest in properties, or have a plan to buy that won’t lead to years of debt. For most people, however, renting is always going to stand out as the stronger option.