Why are people into renting homes rather than purchasing them? Although the government has done everything it can to encourage home purchases through lower interest rates on mortgages, more families are still looking to rent than buy.
Easier on the Pocket
One of the more obvious reasons renting is better than buying a home is it’s generally lighter on the pocket. You don’t need huge sums of money to make a down payment to move in. Plus, considering that you don’t own the house, your landlord shoulders maintenance and repair costs. Furthermore, you don’t have to pay exorbitant fees and interest rates for the mortgage on your home.
Unless you’ve already made up your mind that you’re going to spend the rest of your life in a certain place, buying a house may not be a good idea. The many opportunities elsewhere demand that you’re ready to move wherever that opportunity takes you. People turn to San Diego homes for rent as an alternative, considering the highly mobile lifestyles of today’s generation.
No Risk in Economic Uncertainties
Economic recessions can drastically alter the real estate value of a home. The real estate market may be showing signs of value appreciation now, but you’ll never be assured of consistency. Renting a house frees you from the worry of paying the mortgage for a house with decreasing value.
You should know that owning a house may significantly increase your debt-to-income ratio, which may hurt your overall credit standing. While monthly rental fees may cost as much as, or perhaps higher than, an average mortgage, experts don’t consider it a debt, but rather an expense.
People may have different reasons for not wanting to buy a house. Practical considerations may outweigh some other factors. Nonetheless, it’s the commitment-free nature of rental units that encourages people to rent.