Today, the concept of owning a home outright is a dream for many people. The massive cost of buying a home today, especially when compared with the cost of renting, makes it hard to get started.
Throw in the eye-watering sums of money that can be involved in paying the deposit on buying a property and it’s easy to see why so many people are picking rental over buying.
If you were in their position, you might do the same!
Why, though, is rental the go-to option today? Why are so many people looking to try and invest in a rental as opposed to go for outright ownership?
Today, the working world is much different.
In the past, you could feel relatively secure that your job – or at least your industry – would remain static.
Today, though, people are moved across the country for jobs at the drop of a hat.
If you are invested in career progression, then lacking flexibility on being able to move on from your home is a costly problem.
If you are renting and you don’t like the area or the current circumstances, it’s very easy to move on.
Buy a house, though, and you need to wait weeks – even months – before you can make the sale. This could mean that if you start renting an area and you don’t like it; you can move on without too much acrimony. Can you do that so easily with a bought home? We don’t think so.
Another nice reason to go for a rental over a mortgage is the debt problem.
Most of us today face massive debts as it is just to live and to get by.
Avoiding debt, though, is much easier if you are just paying your rent every month. This means you aren’t taking out a massive personal lump sum to buy the home in the first place, avoiding the suffocation of debt.
As mentioned above, not many of us have enough cash in the bank to make a downpayment or a deposit on a property. This is going to have a considerable impact on you as time goes on, especially as the housing markets continue to get artificially more costly.
You can easily avoid down-payments if you choose to go and rent a property instead. This means no more having to find a ridiculous sum of money to make the downpayment with, helping you to enjoy your savings instead.
In the past, people used to want to own their own home as it was seen as a symbol of your own success. Well, that isn’t really the case any longer. Today, financial success stems from able to enjoy your own standard of life.
How can you enjoy things in life if you aren’t able to actually afford to pay for them?
Rental is always smaller than mortgage payments, so you can find that you can get a more specific and personally enjoyable lifestyle if you aren’t so focused on the idea that owning your house makes you a success, to begin with.