How Can Renting Save You Money?

This is the ultimate question that crosses everyone’s mind at some point. Can you save money renting? Many people choose to buy a house early in life, but some choose later. There are varying reasons to rent which really depend on personal preference.

With the cost of living steadily going up, people are increasingly asking this question. Here are a few things to consider when deciding if renting will save you money.

The Cost of Owning a Home: A Money Pit

It is no secret that owning a home is not cheap. Houses require a huge commitment, and part of that commitment is putting money into fixing and maintaining the house. You have to have money set aside for when your house will need a little extra maintenance.

Your hot water heater may go out, or maybe your HVAC system isn’t cooling properly.

These disasters are also possibilities of what you can expect when owning a home.

1. Flooding

If you live in an area that is known for flooding, you should definitely have a plan in place, or an insurance plan that covers a situation like this. Flooding damage can cost anywhere from $18.22 per square foot to $23.43 per square foot. These numbers can be found here.

Most flood insurance is around the $700 mark but may go up or down based on your risk of flooding. Check out this site to learn more.

2. Major Foundation Repairs

Cracks or other issues in the foundation of a home can lead to serious problems. When renting, this sort of issue won’t be on you to take care of since you’re not the owner of the building.

3. Replacing a Roof

Your home may eventually need a new roof one day. Areas with high amounts of rainwater experience this more than drier areas.

4. Mold

No one wants to have to deal with mold. Ever. Mold can be overlooked in homes when you don’t know where to inspect for it.

5. Insurance

You should purchase homeowner’s insurance when owning a home. Most mortgage companies require that you purchase home insurance on your home. Depending on the area you live in, you may have to purchase additional insurance if located in an area that is considered high-risk.

What About Property Taxes?

The luxury of not having to pay property taxes is only a reality when you are renting a home or living space. When owning a home, depending on the size of it, you will have property taxes to pay.

Property taxes also depend on the neighborhood and school district that you live in.

The Growing Cost of Living

As time goes on, housing prices do as well. The interest rates or mortgages are increasing with time, as well as the price of the house itself. Even though the cost to own a home is going up, the cost to rent is staying relatively flat in many areas.

It May Be Cheaper to Rent

With the growing cost of living, as well as the money spent on upkeep of the home, it seems as though renting may be a way to save more money at least for a while until you can save enough for a decent down payment on a mortgage.

Whether you rent or buy, be sure to take into consideration all the factors associated with your decision.