What goes Into Renting vs. Buying a Home<\/p>\n\n\n\n
When someone is considering purchasing a home, they have two options. Either deciding to rent the home, or buy the home to fully own themselves. A house can be a hefty investment for many, so it\u2019s important to consider all the available options when deciding how you will end up in your dream home. <\/p>\n\n\n\n
A major factor that drives people to rent homes are the finances. It may be the best decision for someone to rent when they might not be able to afford certain fees, especially a down payment. When purchasing a home with a mortgage, you\u2019re required to have a down payment for as much as 20% of the property\u2019s value. For example, A 20% down payment on a house with a market value of $200,000 is $40,000. The average apartment rental in Manhattan was $4,419 in February 2022. Not an unfair price for being considered one of the most expensive places in the country! Those who don\u2019t have money for a down payment are better off renting. Many young people\/couples also find it most fit to rent, because they\u2019re not sure if future plans would change and it wouldn\u2019t make sense to buy a home they wouldn\u2019t be staying in. Excessive debt can be another contributing factor into why people might not be able to purchase a home right away. When you purchase a home, you\u2019re required to keep with all of the maintenance and repairs. This just means that more money than expected could be coming out of your wallet!<\/p>\n\n\n\n
It\u2019s also a lot harder for home owners to live in cities of their dreams, because the prices are just way too high. Renters get a lot more flexibility when it comes to places they can live, because of the overall lower costs associated with renting. Renters also have the ability to move whenever their lease ends. This means if someone begins to struggle with paying the rent each month, they are much more flexible to downsize and move to a location a bit more in their price range. The amount you pay in rent is also set for the entire span of the lease agreement. So if there were to be any sort of rent raises, you would have time to budget and know exactly how much you would have to be paying. <\/p>\n\n\n\n
Check out some statistics of renters in the United States (2022). 34% of current U.S. households are renters:<\/p>\n\n\n\n