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Buying A House Isn’t Always Better

Updated: Sep 20, 2023

By Amos Faulkner March 3rd, 2022

Reviewed and edited by Burak Aydin

Fact checked by Burak Aydin

Updated September, 20th, 2023



Buying A House Isn’t Always Better
Buying A House Isn’t Always Better

Buying a House Isn’t Always Better


We are taught to believe that owning equity in real estate is the best investment. While this remains true for most people, certain renting circumstances make the most sense. Does it really make sense to buy a house?


Relocation is easier


The number one reason that renting makes sense for most people is to move within the next three or so years. Renting is an excellent option if you already know that your children will need to change school zones, such as if you plan to move to a private school or if you’re going to be taking a new position at work out of town.


You can’t afford a down payment


Depending on your credit score and status as a veteran, you might qualify for low or no down payment. But it makes sense to put 20% down on our home purchase to avoid private mortgage insurance for the rest of us. Better explains that the average down payment these days is 12%, but that still adds up. On a $300,000 home, 12% is $36,000 that you need in cash, and that does not include closing or moving expenses. By contrast, you may only be out of pocket one to three months’ worth of rent for a rental property.


You want access to amenities, but you don’t want to upkeep them


If you want a swimming pool, tennis court, walking trails, and private clubhouse, but you don’t have the money, time, or ambition for these types of amenities, renting might be for you.


You value the flexibility to move on your terms


While most apartment complexes and property management agencies require you to sign a lease of one year, many will offer a short-term contract. Either situation means that you can move much quicker and more accessible and with fewer financial losses than if you bought a home and decided he wanted to move in 12 months. You may also have the option to rent a short-term co-living space, which Common asserts is an excellent option if you’re learning how to live on your own or want to enjoy the city without an urban price tag.



Buying A House Isn’t Always Better


You live in one location for half the year


If you’re retired and live in one state half the year and another state the other half, plan to rent unless you know that you can make money off each home when you’re not there. That will save you from paying two sets of mortgages and property taxes. (Tax Foundation’s infographic is an excellent resource for determining property taxes by state.



Insurance is cheaper


Homeowner insurance isn’t cheap. According to Value Penguin, this is because homeowner insurance covers not only your belongings but also the cost to rebuild a home in case of damage, such as a fire, storm, or explosion. The nationwide cost of homeowner insurance is more than $1000, while a renter can expect to pay less than $200.


Owning a home is no doubt still the American dream. But, with soaring home prices and the ability to work remotely, meaning you can live wherever you want, buying a house doesn’t always make sense. If you’re not quite ready to settle down, going the rental route may save you time, trouble, and money.



If you choose to buy, you can find affordable home services from Servicebly. Visit us online today or call 267.963.8440 for more information or schedule a professional handyman.


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