The Big Question Renters Ask
When someone has been living in a rental home or apartment for several years, it is easy for him to question the age-old wisdom that says buying a home is wiser than renting one.Here is the way the question is normally asked: If I buy a house and take out a 30-year mortgage, paying interest for several years, all repairs and utilities, while forking out another 25% in local and state taxes, caring for my own lawn and landscape, then tell me again, why should I buy a house instead of renting one?
Add to this question another: And, what if I have to relocate in five years, unexpectedly, and I get stuck with a mortgage in one town and have to commit to a new rental payment in the other?
The Questions a Home Buyer Asks
People who have already wrestled with these questions, yet have concluded that buying a home is the smarter way to go, would pose another set of questions to the intractable renter:- Why would you want every penny of your housing money going into someone else’s pocket? Wouldn’t you rather be able to recover most of it, and, perhaps, increase your net worth by buying a home instead?
- What if your apartment building changes hands and the next owner lets the property fall into disrepair?
- What if you sign a one-year lease on an apartment and then find out your company is moving you to another state? Will you be able to sublet your apartment to someone else when most contracts disallow it?
- What if you need to expand your dining room or improve your kitchen? The home is not yours, so how are you going to pull that off?
The Common Misconceptions of Buying a Home
Transitioning from renting to owning follows the logical sequence of the questions posed above. Sometimes, owning does not make sense until a renter has become an owner and experiences the freedom and assurance of having a place he can call his own.The belief that all the taxes, upkeep and economic woes are reasons enough to keep losing 100% of their housing money to the landlord is, at best, skeptical. Considering the economic downturns, even the worst case scenario for a home owner is the possibility that his house will be devalued over time. However, the loss will be nowhere near the 100% that a renter experiences every month he makes his payment.
The history of home ownership bears out the wisdom of investing in a house rather than paying to use someone else’s. Economic downturns are temporary; the freedom of owning lasts a lifetime.
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