Advantages of renting a home
– Renting a property allows more flexibility than owning a home. This is ideal for those who could be faced with sudden changes such as a job relocation. Renting requires no long-term commitment from a Tenant, and is the best option if you don’t intend on staying in one place for a long time.
– As a Tenant, there is the possibility of living in an area in which you could not afford to buy.
– Moving out is easier for a Tenant than a Homeowner as there is no stress of finding someone to take over the lease, or finding a Buyer to purchase the property as this is the responsibility of the Homeowner or Landlord.
– The only insurance required by a Tenant will be to cover the contents of the home, while all maintenance work on the property is for the Homeowner’s account, as is homeowners insurance.
– After paying rent, a Tenant may have additional money which they can use to invest elsewhere, whether it is saving towards buying a house or investing in the stock market, and need not worry about putting additional funds into a home loan.
Disadvantages of renting a home
– A Tenant is bound by the rules of the lease agreement, which can impact the freedom to use or renovate the property.
– You cannot make changes to a rented property without the consent of the Homeowner.
– When renting, you will often have to deal with a Rental Agent who will then be the liaison between you and the Homeowner. This can result in issues taking longer to resolve since there is a 3rd party involved.
– Renting offers no wealth creation or return on investment since the property will never legally belong to the Tenant, and instead, the Tenant is paying towards the Homeowner’s home loan.
– When renting a property, you will have no control over annual rental fluctuations which are directly affected by inflation.
– There is no guarantee that a lease will be renewed when it expires.