Even if you can afford to buy a home, that doesn’t always mean it’s the best choice for your lifestyle. Fairways residents rent by choice. They want to live in a home but have no desire to be tied down by a mortgage, or deal with maintenance and associated expenses at this point of their lives. There can be tremendous financial benefits to renting as opposed to buying a house of your own. Make sure your living situation is complementary to the lifestyle YOU want!
Hidden Costs of Home Ownership
No real estate taxes.
An obvious benefit that Fairways residents have over homeowners is that they do not have to pay real estate taxes, which continue to increase year over year.
No big down payment.
Unlike buying a home, you do not need a huge down payment to move into a rental property. While a down payment for a house is much more substantial, a rental deposit is typically equal to the amount of one month’s rent. Thus, providing additional liquidity for security, investing, or recreation to the resident.
Lower insurance costs.
While homeowners need to maintain a homeowner’s insurance policy, renters are wise to invest in a renter’s insurance policy. Luckily for those who lease, comprehensive renter’s insurance comes at a much lower cost.
Predictable Monthly Payments
Finances are much more predictable when you lease, and typically a fixed amount for the span of the lease agreement. You can budget more effectively, knowing the amount of rent you are required to pay. Meanwhile, mortgage payments, property taxes, insurance, home maintenance and major repairs can fluctuate.
With leasing, you are free from the burden of selling a home that no longer fits your lifestyle and the stress of trying to sell a home in a down market. There’s also less risk of uncovering an unforeseen problem that you are on the hook for financially.
No Market Risk
When you buy a home, you take on the risk of the home’s value, or your needs unexpectedly changing. By renting, residents are avoiding the fluctuation in home value that comes with uncertain times, and maintain the flexibility to pivot to a home that suits their present lifestyle and needs. In a rocky housing market, renters are not as adversely affected.