Why Renting is Underrated

Neither renting, or buying a home is a superior alternative to one another. However, if your a renter, you might be seen as a second class citizen. And if your a homeowner, people simply look at you differently. You might be seen as a financial success! After all, you probably saved up, or put down a sizable deposit (although not required today). Owning a home is everyone's dream right?

Why We Re-think Buying a Home Today

The one good product of the financial crisis is that now people stop and think for a second before proceeding. Maybe buying a home isn't a great idea after all? Many buyers lost their homes in the great recession. It is certainly possible; making the decision to buy a home can be a really poor one.

You paid way too much for the home and it will take you years to recover the value

Your job may require that you move in the near future. Then you realize that as the seller, you will have to pay the commission on your home when you sell. Yes, that means both the buyer's and seller's agent will be entitled to their fee.

By the time you pay property taxes and interest on the loan, now your way underwater!

The idea of home ownership is way oversold! What do you get after all? A nice monthly mortgage that you may have to pay for 15-30 years as well as yearly property taxes!

Everyone has a unique situation. There is simply no right or wrong answer here. But we can argue that renting certainly doesn't carry the risk of homeownership.

You might be a big defender of homeownership. Here are just a few reasons why renting is totally underrated.

You don't pay property taxes

As stated above, you avoid property taxes. Yes while some of you say that these are included in the rent, you won't have to pay them or worry about them increasing yearly (as they tend to do). Renters just have to decide if the monthly rent is fair.

Many owners include a percentage of their property taxes in their mortgage, while others pay the yearly sum. Either way, if your a big proponent of owning a home, property taxes certainly aren't a reason to brag.

Repairs and Maintenance aren't your Problem

All homes are in need of repair and maintenance. Some are cheap, while others can be extremely costly. Ask a homeowner how much it costs to replace their ac unit.

Electrical problems, plumbing, garage door repairs, the list goes on and on. The one great part of being a renter is that you can call the landlord and tell them, "get this fixed".

HOA Fees are Too High

What is the point of a homeowners association? It's to keep your property levels high. Let's be clear about one thing. These are fees. They take money out of your pocket. Sure your HOA pay include water, trash, landscaping, and common areas. But many HOA's must also carry insurance and be represented by a management company. An HOA also generally has rules that homeowners must abide by.

If your a defender of homeownership as an investment, and you have an HOA, you might want to re-think what it does for you.

When Ownership Makes Sense

Buying certainly makes sense in many situations. When there simply aren't enough homes in an area, this drives up the cost of homeownership. Owners can make a nice profit and renters will miss out on the increases. Just look at Texas! Apartment rents are rising across the country. Renters have to keep paying more in these markets.

But as a homeowner, many professionals tell you not to look at a home purchase as an investment. Because its a bad one. You are simply paying to live somewhere. There is a cost for that!

All is takes is a homeowner too look at all the costs associated with homeownership. This includes, taxes, interest on the loan, and repairs. After adding all this up, most people probably don't make as much as they think.