Close Topic Options

Benefits Of Renting

Benefits of Renting

While there are some renters who view renting an apartment or a house as a failure, there are others who see the benefits there are to be gained from renting a property as opposed to purchasing a property. Some of the benefits of renting include the ability to save money while renting for the purpose of purchasing a home, few maintenance requirements and the inclusion of amenities which the renter would not likely be able to afford if they were to purchase a home instead of renting. Although there are some negative aspects to renting an apartment, this article will focus exclusively on the benefits of renting a property.

The Ability to Save Money

Being able to save up a great deal of money for the purpose of making a down payment on a dream home is just one of the many great advantages to renting a property. Many homeowners were able to realize their dream of homeownership only after living in a rental property for a certain amount of time. Although renting is often criticized as throwing money away because it does not result in equity, the ability to save money while renting is unparalleled

Rent for an apartment is usually considerably less expensive than the monthly mortgage on a home. The home is also typically much bigger than the rental property but in cases where the renter is renting for the sole purpose of saving money, the value of renting cannot be denied. Depending on how long the renter stays in the apartment, they may save hundreds or even thousands of dollars during the course of the rental agreement.

No Maintenance Properties

Another advantage to renting a property is there is typically little or no maintenance required by the renter. This is especially true in an apartment situation. The renter may be responsible for small items such as changing light bulbs but more extensive repairs such as leaks in plumbing or clogs in drains are typically handled by the maintenance staff of the rental property.

Additionally common areas such as grassy areas or gardens are maintained by the maintenance staff. The exception is usually when the renter rents a home as opposed to the apartment. In these cases the renter may still not be responsible for small repairs but might be obligated to take care of items such as maintaining the grass.

Worthwhile Amenities

Another advantage to apartment living is often the amenities offered to residence. Such amenities might include usage of the pool, an exercise room, meeting spaces and a theater room. In most cases these amenities are offered free of charge to resident and their guests. Many renters who might be able to purchase a home would not likely be able to purchase a home with amenities such as a pool, fully equipped exercise room and a home theater.

These items are often considered luxurious and are not available in the majority of homes which are on the market at any particular time. In fact searching for homes which specifically have these features may severely limit the number of search results and may result in no search results at all when these features are searched in conjunction with a typical price range. However, those who rent can enjoy access to these amenities. They may pay more in rent than those in a comparable apartment complex without these amenities but they are also still likely saving a considerable amount of money each month as long as they are budgeting wisely and have chosen a rental property within their price range.

Renting Benefits

I would not consider renting an apartment a failure. If you have a transient lifestyle or have not yet settled down with a family an apartment may make more sense to you. You would need to look and see which is the better financial situation. Renting does not build equity, but often you do get nice amenities without having to worry about the maintenance costs and effort. But it is nice to own your own place and not have to answer to a landlord about what you choose to do with it.

Benefits Of Renting History & Civil Business Politics

I cannot see any long lasting benefit about renting. The place is not yours and whatever you do with the place has to be informed to the landlord who decides whether you can do this or that with the house. In a place like Trinidad, right now it is an impossibility to own a house so renting seems to be the only option for now.

Renting Benefits

It really depends on your situation. I think many people in the US get themselves into a house because they get a tax break. I have always laughed a bit at this, in particular if the person put down the minimum and is getting the PMI insurance. It is true that you can deduct your interest paid on the loan from your income and thus lowering your tax, but the fact is you paid someone...the bank. The idea is that you are getting investing into something for this money. True, but this works only if the price of your house stays stable at minimum and your payment doesnt increase due to the type of loan you signed. This mentality also assumes that you would not invest the additional cost of owning a house in other ways.

Renters have the advantage of being able to walk away with 2 months notice.

Homeowners cant just divest themselves of the property at will. There is a bond that takes another person to help to break...the next owner and they dont always come around exactly when you need them.

Financially, in my mind, particularly if you find yourself potentially needing to pay a PMI, then you are better off renting until you can afford a downpayment big enough to avoid this penalty. At about $100 per month until you reach 20% equity, this is a steep price to pay in order to get into that house early.

Basically, if you put no money down and get a fixed rate loan of 6% for a house that is $100K USD for 30 years, at the end of the loan...you will have paid about 2.5 times the initial worth of the house. Now hopefully the price goes up. Now with that $150K (assuming you saved it) and not to mention the other cost avoided from not buying a house, could you have made more money than the increased value of your house? Could you have made money and saved it and paid for a house outright? Could you have saved up enough to put down 20, 40 or 60% for a downpayment and then gotten a smaller loan?

Again, these are questions for the individual and their situation and discipline in handling money. There are good points on both sides.

Renting Benefits

I hate renting with a passion. I don't really see a benefit to renting unless your stay in a certain place is temporary.

Benefits Of Renting

It really depends on what you do with your money. Typically, renting is cheaper than a mortgage loan. What does the renter do with the extra money? If they spend on things, then yes, there is no benefit. If they invest that money, then there is a argument that the renting will end up saving you more in the long run. This becomes particularly true if you are putting no money down and taking a 30 year loan. The end game is always to buy property. The only quesion is how much does it cost to buy the property in the end. With a fixed rate loan today, you can expect to pay about 2.2 times the cost of the house when you are done paying. By renting and investing money, you can knock down the overall cost of the house considerably. However, most people dont manage their money all that well and the extra money available by renting is spent on things.

Benefits Renting

I agree with you in theory Vincenzo, problem is I live in a Banana Republic where houses are impossible to buy unless you are a millionaire (literally) and the cost of living is high enough that it is virtually impossible to significantly save.

Benefits Renting Politics Business Civil & History

Then you must be looking for option C and that is expatriating to another country with a lot less bananas!