Sometimes renting a house is the best option.
Most of us would agree that home ownership is the best wealth-building opportunity for most Americans. But there are cases where renting makes more sense.
“When you pay rent, you’re paying someone else’s mortgage,” says Brian Rogge, chief credit officer at Loan Depot, Lake Forest, California, which sells mortgage and non-mortgage lending products. “But this does not necessarily mean that buying is always the best option for everyone in every situation. The wise choice to rent or buy really boils down to one’s life and criteria of situation.”
While home ownership is the best long-term investment, Rogge points out, renting brings with it a degree of flexibility that a homeowner does not have.
“Even if you still have months on your lease, you can usually sublet for the rest of the time. So, if you think you might move in in a year, or if you don’t know if you want to settle in the area you live in. Leasing is the best option.
It is also a good choice for people who are allergic to household chores and expenses.
“You might not build a fortune every time you pay your monthly rent, but you don’t have maintenance concerns either. You simply don’t have to think about it, and it can be a nice way to live.”
Rogge explains that the way home ownership connects people is more complex than they might expect.
“They have seen a lot of home renovation shows, and they think they can always turn the house around. In fact, it takes time to sell a house, and there is no guarantee of a quick buck.”
Another common misconception is that if homeowners need to move in, they can easily rent out their home. Brian Rogge explains that being a remote owner is expensive and time consuming.
“You have to hire professionals for anything that needs to be done, because you are not there to do it yourself. This becomes very expensive and being a landlord is hard enough when you are close to you and able to build a relationship with the tenants. And remember, when people rent a house, they don’t treat it Often with the interest they would have done if they had owned it.”
While renting is a better option for young adults who are willing to make geographic or occupational changes, it advocates home ownership.
“If you are in a stable position and are able to buy a home, you should.”
Although interest rates have risen, it indicates that they are still very low compared to historical rates.
“There is a lot of concern about low inventory and high demand, but this is nothing new. And the market is stable: we are not about to get into another situation like 2007. So, if you are in this situation for a long time, buy.”