Rent Vs. Buy: Why Do People Prefer To Rent?
Whether you are moving out of your parent's place or you are leaving college soon and need your own place, you are going to need to begin an apartment or home search soon. You may be looking for a place alone or with a significant other. In any event, the question that you need to answer is whether you are going to rent a place or if you are ready to buy. Here are a few reasons that individuals tend to prefer to rent instead of buy (at least at first):
- Not Enough Money – One of the most common reasons that people tend to rent instead of buying is because they don't have enough money to buy. Sure, monthly payments are usually cheaper if you buy, but you generally have to come up with a pretty hefty down payment when you buy a home, especially when you have…
- Bad Credit – This is often another huge reason individuals choose to rent. While some apartment communities will run a credit check, others will not. The ones that do may only require a little extra deposit to house you.
- Too Much Upkeep – By renting an apartment or a house, you are not responsible for the maintenance and main upkeep of the home. The landlord/owner is responsible for those things. However, if you were buying a house and something broke, such as the hot water heater, you would need to make sure that you had money set back and could pay for the repairs or the replacement of the water heater.
- Don't Want To Be Tied Down – When you buy a house, you are going to need to stay in that house for a few years after investing such a significant amount of money into the purchase. Otherwise, you are going to find yourself in major debt. With renting, you may need to stay until your lease is up so that you don't have to pay a fee, but after that, you are free to go anywhere you like.
In the end, though, the decision is yours. Whether you decide to rent or buy, it is imperative that you talk to an insurance agent about insurance. If you are renting, you need renters' insurance, which will insure your personal belongings in the event of a flood, fire, etc. If you are buying, you need homeowners' insurance, which will insure your home in the same events. You can talk to an insurance agent, like one from State Fund Insurance, about renters' and homeowners' insurance in more detail depending on your exact situation.