You should read this if you’re trying to decide whether to buy or rent.
- You’ll need to decide whether to buy or rent a home.
- There are pros and cons to remaining a renter.
- Finance expert Dave Ramsey notes that renting offers greater flexibility, but owning often means more stability in housing payments.
Renting a home is an alternative to getting a mortgage and buying your own place. Many people are eager to purchase a property, but sometimes being a homeowner isn’t all it’s cracked up to be. In fact, there are pros and cons to both that are worth considering.
Not sure what the biggest benefits and downsides of being a renter are? Finance expert Dave Ramsey weighed in on this issue and here’s what he had to say.
Ramsey says these are the three biggest pros of renting
According to Ramsey, the three biggest benefits of remaining a renter include more flexibility if you want to move, not having to pay for home maintenance, and the fact that you won’t have to spend as much money in the short term.
If you own a home, moving is a hassle and a huge expense. You’ll have to find a buyer for your house — which usually means paying a commission to both your real estate agent and the agent representing the buyer. This commission could add up to 6%. And you’ll also have other closing costs on top of that.
As a renter, though, this won’t be an issue for you. “When you rent, you don’t have to stay in the same location,” Ramsey said. “Plus, it’s much easier to get out of a lease than a mortgage.”
As for home maintenance, making fixes becomes your responsibility as an owner but is something a landlord takes care of when you rent. “If the stove goes kaput and the faucet pipes burst, you don’t have to call the plumber or make a trip to the appliance store,” The Ramsey Solutions blog reads. “You call the landlord. One of the biggest perks of renting is that you never have to worry about surprise repair costs.”
Finally, Ramsey explains that it is cheaper to be a renter in the short term since you only need to come up with a security deposit and since your …….