Traditionally, the notion of buying a home has been favoured over renting along with the belief that if you rent “you’re just throwing your money away”. For many purchasing a home is a major hallmark of adulthood in committing to a long-term investment plan. However, on the flipside there are benefits to renting including the flexibility it provides in compared to the more “fixed” lifestyle of owning a home. Here are three big benefits of not buying:
1. Location, location, location
Many first time home buyers “settle” on neighbourhoods they don’t necessarily love because they can’t afford the price tag associated with more central or desirable areas. Renters have more options at various price points within the communities of their choice and they aren’t locked down. When life changes, like having a baby or taking a job in a new city; it’s much easier to up-grade or relocate.
2. Cash in hand
Real estate is not the only option when investing. Often renters have more disposable cash because they aren’t weighed down by things like initial down payment, repairs and property taxes. On a month to month basis, renting is also less expensive then owning a home after you factor in all the utilities and maintenance. So that extra money can be easily put into investments that offer more liquidity in the short term should you need to access your savings for a sudden expense or that trip to Amalfi coast you’ve been dreaming of.
3. Time is on Your Side
Owning a home comes with extra work which can be physically demanding, as well as, a drain on something most people already feel really stretched for – time. Whether it is regular lawn maintenance or ripping out the early 80’s wood panelling in the basement, the time involved in the general up-keep of a home, coupled with increasing it’s value is something renters just don’t have to contend with. Choosing to opt out of buying a home leaves more time for the important stuff like hot yoga and weekend wine tours.
If the concept of purchasing feels like pressure, then it may be best to hold off and evaluate whether becoming a home owner is really in line with your overall lifestyle preferences. If you think outside the box, there’s more than one way to create a life you love – mortgage or not.