Should You Buy A House Or Rent Forever?

Renting a house or apartment is the usual choice for most demographics. Some examples are students moving out of their parents’ homes and renting an apartment or couples renting a larger space for their growing families. Even retirees may want a more peaceful area to spend their golden years, so they also look to rent something suitable.

With that being said, buying a house and becoming a homeowner are usually considered as major life goals for everyone. We save up, get a lease, and start planning our forever home while still in our 20s or 30s.

Why do people want a house of their own?

For many folks, owning a house fulfills many smaller goals in their lives. Here are just a few of them:

• A secure place to live for themselves and their family

• No threat of eviction or increase in rental rates

• Ability to make long-term plans and connections with their neighbors

• A feeling of achievement

Is it so important to buy a home? 

On the other hand, some people are content with renting a place their whole lives. They might have resigned themselves to the fact that they can never afford a home of their own, or they might make this conscious choice regardless of financial ability. 

After all, buying a home requires many sacrifices for the common man, which include: 

• Making large payments for most of their lives

• Not being able to move places very easily (as opposed to renting, where the lease is usually for just one year)

• Being responsible for all the repairs and maintenance around the house

• Facing a loss if the property decreases in value

Overall, there’s now a debate going on about whether it’s better to buy a house or just keep on renting. Until recently, most people were of the opinion that they should be a homeowner, even if it meant some compromises. 

You might be on the cusp of looking at used 2-bedroom mobile homes for sale, or something larger for your family. 

Before signing anything, though, have a look at the following discussion on buying or renting.

Buy a House or Rent Forever?

It might feel nice to be a homeowner, but what are the costs? 

Home prices vary from state to state, with some being fairly reasonable and others being only for the very wealthy demographics.

If you don’t have enough for a large down payment, the monthly costs of private mortgages go up.At the same time, wages are almost stagnant, and generational wealth is also dwindling as time goes by. More and more millennials are now thinking that they will remain renters forever.

Are you stuck between planning for home ownership or renting forever? Here are some factors to streamline your thinking!

1. The Matter of Flexibility

The younger generations in the U.S. are used to frequent moves out of one place and into another. However, they are also learning about long-term renting, where they can settle into a property within a convenient location.

With long-term renting, a lot of people are now enjoying the benefits of staying grounded in one place. They can make friends, work connections, and have a comfortable work-life routine. 

Of course, there might be a process involved before you find just the right place. 

The rent has to be affordable for your income; you have to be close enough to school or work (or both!); and the list goes on.

Some renters may prefer to stay in a rented place where they have convenient access to stores. They may have to compromise on their commute somewhat, but it’s usually a matter of your priorities.

What’s really great about such a setup is the flexibility you retain. As a renter, you can move out the minute your lease is up. If you have enough cash for a security deposit at a different place, you can simply pack up and move there in search of a better life or to pursue your dreams.

If you were a homeowner, though, such a decision will be much more difficult and costly. Selling a house is no small matter; it could take months or even a year. 

If the house doesn’t sell and stays on the market for more than a year, the chances of it selling may go down quite a bit. 

Even if it does sell, there’s no guarantee that you can make a profit on the sale even after a lot of hassle and preparation.

The other side of flexibility

While flexibility might be a perk in many ways, it also means a bit of insecurity. 

The rules of renting allow you to move out quickly and snag a new place with relative speed as well. However, the same rules also mean that you’re vulnerable to the whims of your landlords.

Renters are always at risk of eviction, especially at the time of renewing the lease. This could be a major inconvenience, and even dangerous, especially for long-term renters who have grown used to the place. 

Even if the landlord or management company doesn't want to evict, the increasing rental rates can drive out tenants.

With job security and low minimum wages, many renters simply may not be able to afford staying in the same place they’ve lived in for a long time.

2. The Cost Factor

One of the major perks of living as a renter is peace of mind concerning the property itself. Of course, that depends on the kind of lease you sign.

In the U.S., most renters don’t have to take maintenance or repair costs on their own heads. That’s the responsibility of the property management company or their landlord.

In fact, long-time renters may not even know how to hire a good electrician or get an estimate for a roof repair.

On the other hand, homeowners might feel like the second they fix one issue in the house, something else breaks.

In a nutshell, this means that there are lower upkeep costs when you’re renting. You don’t need to have a lot of money put away for a rainy day, so the majority of your savings can go into other investments.

The restrictions factor

Renters might be able to call building maintenance to get free repairs, but they are also restricted in many ways.

Since the walls are not your own, you may not be able to hammer nails, hang frames, or do anything major with the place.

With that said, few people have the time and money to spare on endless repairs. The ability to leave it all on the authorities is quite a major factor to consider.

3. The Benefits of Living in a Community

All the advantages and disadvantages of renting or buying don’t have to revolve around financial factors. There’s also a community benefit to home ownership. You get privacy, security, and a sense of being in your rightful place.

These feelings are hard to replicate when you’re renting. Even if you've rented a home for a long time and have a history there, the thought of not owning it will always linger. It’s also hard to put a price on feeling good. For some folks, owning a home is what will satisfy them the most. 

On the other hand, there are some useful community benefits when you live in an apartment complex or even a condominium building.  You’re close to other people, whether you like it or not.

At the end of the day, these are the people we pass in the corridors, talk to on a regular basis, and help out when possible. You share the amenities there; overall, a renter’s life can be a very social one without trying too hard.

Yes, your noisy apartment neighbors might be a nuisance at times – noise from kids, vacuuming, practicing music, and smoking tenants could interfere with the quality of life in your rented apartment. Still, there’s always the other side of the coin to consider. 

With so many areas in the U.S. being densely populated, apartment living is usually the only way to go. In such cases, we have the opportunity to offer care and support to our fellow human beings.

If we were to live separately in our own homes with high fences, this chance might not come by too often.

The Takeaway

When you look at both options carefully, either renting or owning could be the best option for yourself and your family.

For those who can afford to own a home and feel up to embracing all its nuances, the decision might be a good one. However, it does seem like we are rapidly evolving into a renter society more than one of homeowners.

You may find young, middle-aged, and even elderly people renting and feeling very happy with their lot. After all, many folks are on a fixed income and don’t even want to think about mortgages.

If nothing else, we can take a look at the housing market. Single-family homes may be in great demand, but the numbers for sale are dwindling. 

Many times, it’s not just a matter of not wanting or not being able to afford buying a house. It’s just the simple matter of the homes not being available.

Do you want to buy a home eventually or have you made peace with renting? Whatever it is, here’s hoping you get the right place at the right time!