Should You Rent or Buy?

Not sure if you should rent or buy?

For decades, owning a house or renting was not a topic of discussion as more people bought into homeownership as a crucial part of the American dream. However, the trend took a new turn in 2019 when Freddie Mac's 2019 survey revealed that 40% of renters downplay the possibility of owning a home. This figure was almost twice the figure (23%) recorded in 2017. 

The percentage of households owned by a renter has also been at an upward trajectory since 2016, approaching a 50-year highest. The rise in the number of renters does not imply outright the desire not to own a house. A 2016 Pew Research Center Survey showed that 72% of renters revealed they'll like to own a house. However, with many millennials believing that changing jobs is crucial to advancing their careers, renting an apartment looks set to be on an upward trajectory.

WHY MORE PEOPLE PREFER RENTING

The major advantage of renting an apartment is the flexibility attached. Most people choose to rent due to the proximity to their jobs or other activities outside their work. Americans who have transient jobs that keep them at a particular location for months before moving to another location also enjoy the flexibility of renting an apartment. Most renters are happy with the little responsibility given to them when anything needs to be fixed in the house. Also, homeowners bear the responsibility in situations where the house loses value. The value of the house is not a problem for the renter. 

PROBLEMS ATTACHED TO RENTING

Despite the growing benefits of renting and more people driving towards the option, the unpredictable rent rate is the major problem often associated with it. The process of renting and the requirements, added with the inability to qualify for a suitable home you desire, may be frustrating.

IS OWNING A HOME BETTER?

The best part of owning a home is the pride that accompanies its ownership (the joy of being a member of society and the stability it provides). You can also decide to adjust to stiffer economic situations by renting out a spare room to make some added cash.

THE CHALLENGES OF OWNING A HOME

Despite the prestige associated with owning a home, so many issues can affect its value, such as the departure of a particular business or any major factor that can stagnate or decrease the house's value. Flexibility is also very difficult, considering the high cost required in selling your house. You also have expenses such as property tax, homeowners’ insurance, tree trimming, pest control, and water and sewer services. The cost of maintenance is another factor to consider. A high maintenance cost does not necessarily improve the market value of the house.

CONCLUSION

The debate about renting or owning an apartment is always settled by the individual's personality, preference, sense of comfort, and peculiar circumstances such as job, status and education. Both options come with pros and cons. It would help if you made your decision based on what best suits you.

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