Everyone seems to want to plant their roots into a community and purchase a home by the time they reach their mid-20s. Buying a house is recognized as part of becoming a responsible adult. However, the responsible thing to do may just be leasing or renting a house instead. There are actually several reasons why this could be the case for you.
You Aren’t Sure You Are Where You Want to Live for the Next Ten Years
If you feel like you have fallen in love with a region and a community, then making a commitment to it seems logical. However, if your career is not established and the area you are living is just so-so, you could be better off just renting for the moment. Think about it. If your job requires you to move an hour or two away, the last thing you want holding you back is a house you literally just bought. A mortgage should not come back to haunt you almost instantly.
Does Not Require a Down Payment
Purchasing a house usually requires a good size down payment. If you don’t have that down payment waiting for you in your bank account, then leasing a place could be your best option. Hopefully, while you are leasing, you can save up a good amount so you can be ready to buy a house a few years from now.
Business Owner
If you are looking to start your own business, you may believe that the first step is to find a building you can purchase to house it in. But what is the business has to close its doors after a couple of years? You would be left with a mortgage on a building you no longer need. It would become a noose on your finances. Instead you should inquire about a commercial lease that will provide you better options until your business is established and successful.
You Won’t Have to Fund the Repairs
Hopefully, you have good luck when you purchase a home and there are no immediate costly repairs. But you can never be sure what is hiding behind those walls. The great thing is when you are renting, the major repairs are going to be left up to the landlord to take care of. If the furnace or air conditioner malfunctions, they will be responsible for paying for it and get it fixed. When renting, there are fewer surprises for your bank account.
