Let’s face it – there is this common perception that renting as opposed to owning is like “throwing money down the drain” and that it doesn’t financially make much sense. But is it really?
- Less to Worry & More Perks to Enjoy
Most homes do not feature a gym, a pool and a rooftop sun deck. And the great thing is, you don’t have to worry about maintaining these types of amenities. With renting you get to enjoy the freedom of locking the doors behind you and go on a vacation and not have to worry about paying property taxes.
Being involved in a home ownership situation is an expensive investment that may prevent you to embrace great opportunities that may come in your way. Many job incumbents now a day’s value satisfaction in their jobs as opposed to security. In other words, if that means to accept a job offer half way across the world, by being in a residential lease arrangement, you are likely to be more mobile and flexible as opposed to being in a homeownership situation. Selling a property may take months, which can feel like an eternity.
- Tenants are not throwing money away
Buyers might be throwing money down the drain more as opposed to renters because the magnitude of making a mistake associated with a purchase is much greater. For example, when purchasing real estate you have mortgage broker fees, real estate agent fees and closing costs that can be well in the thousands of dollars. Being in a rental arrangement, you have the option to lease the premise on a month to basis. But try saying this out loud “I would like to pay my mortgage payment for one more month”. Doesn’t sound right, does it?
When you are renting, your not really throwing money away. You are spending it on what we call “living”. You eat, sleep and live in your home and what’s $X of dollars/month if your not content.