Is there anything "wrong" with renting?

[ali2083]

Looking for some outside perspective. I'm a single woman in my early 30's with a good job and no kids. I currently live in a pretty basic apartment that I've been renting for a little over 3 years. I'm at a point where I can afford to upgrade to something bigger/newer with more amenities (laundry, garage, onsite gym, etc). I've been looking for a nicer place to rent, however some family members and coworkers are insisting I should buy. I could have a downpayment for a small condo in the next year or so.

I however do not want to buy for a few reasons - I don't want to deal with maintenance issues, I'm not certain I want to live in the area I'm in for a long time, and I'm just hesitant of getting in over my head.

Is there anything wrong with renting?

 

[MPB82]

The only issue with renting, dep on your rent, is you are building no equity. I currently pay 1330 in rent and mortgages in area are less. Me and my wife are looking now at homes. We want more space, "our own home" but I agree having handy men and people to do maintenance and shovel and now is nice.

But buying is something you should do if you really want to not cause other people say so. If you buy it's a long term commitment

 

[HarleenQ]

Looking for some outside perspective. I'm a single woman in my early 30's with a good job and no kids. I currently live in a pretty basic apartment that I've been renting for a little over 3 years. I'm at a point where I can afford to upgrade to something bigger/newer with more amenities (laundry, garage, onsite gym, etc). I've been looking for a nicer place to rent, however some family members and coworkers are insisting I should buy. I could have a downpayment for a small condo in the next year or so.

I however do not want to buy for a few reasons - I don't want to deal with maintenance issues, I'm not certain I want to live in the area I'm in for a long time, and I'm just hesitant of getting in over my head.

Is there anything wrong with renting?

Nope! It is a better option for some people. The whole money down the drain idea is just a blanket statement.

If you know the pros and cons and want to continue renting, rent!

 

[Julie's Haircut]

Nothing at all wrong with renting. Your reasons are entirely valid.

 

[minniecarousel]

There are possibly tax benefits to paying a mortgage rather than paying rent.

 

[gotomu212]

Yes you aren't building up equity, BUT you also aren't paying property taxes, maintenance, and your renters insurance is much lower than homeowner insurance in most cases. Those costs (especially upkeep and maintenance get overlooked in equity calculations a lot).

In the new economy renting is actually a smarter financial decision in more situations and the old norms about home ownership don't apply as often. (Some of this is dependent on your market)

 

[jevs]

The only issue I have with renting is when people get old, I wouldn't like to be elderly and having to move when landlords want me out.

 

[FINFAN]

no, there is not. Home is home.

 

[Teresa Pitman]

I think it depends a bit on where you live. As a single mother, it took me a long time to save up enough to buy a house. But I bought this one 12 years ago. I paid $230,000 for it. Now it is worth over $400,000, and I only own $125,000 on it. So I have had a place to live all these years AND I have something worth a good amount of money. If I wanted to sell it now and go back to renting, I'd have some funds I could use to travel, etc. I have friends who have done exactly that. And yes, I have to do maintenance and upkeep, but for me I appreciate that I can have it done correctly (I have have had landlords in my rental years who insisted on doing the upkeep themselves and often they did a terrible job) and have the freedom to make improvements (I just added a new deck at the back of my house!) that I want.

If I lived in a different place, though, I might have seen the value of my house go down rather than up and so I might not feel so positive about this.

 

[Colleen27]

Unless you know you want to stay put, I think renting is actually a smart move. I know so many people who bought because a mortgage was cheaper than rent only to end up stuck with a house they couldn't easily sell (and in some cases, took a big loss on) when they wanted or needed to relocate.

Buying makes more sense if you're willing and able to take on the costs and commitment of home ownership, and if you plan to stay in your current community long-term. And only you - not your friends or family, no matter how well-meaning they may be - can know if you're "there" at this point in your life.

 

[verleniahall]

nope! We rented while on active duty, and we have rented at the same place for 5 years+ now - love the couple we rent from and they always bend over backwards for us if we need anything

 

[DLgal]

We have been renters our entire lives (19 years so far, since I rented my first place sophomore year of college.) We LOVE being renters and have no plans to ever buy a house. Renting allows us to live in a far nicer and more expensive house than we could buy (we are in Orange County, CA) and it means ZERO stress about maintenance, and the constant worry of an expensive home expense. We can move when we need to without stressing about selling, etc. Renting is a totally acceptable and legitimate housing option. A house is NOT an investment, no matter how many people mistakingly believe it is.

 

[ali2083]

Thank you all for your responses. I'm definitely going to continue weighing my options but its helpful to know there are positives to renting. I think in my case its a smarter financial decision.

 

[ashley0139]

Where I live the cheapest possible house is over $500,000. Doesn't really lend itself to buying, especially in your 20s and 30s. While I'd love to own, I love knowing that if I have a problem it will be fixed, and I won't have to pay for it. I don't have to do yard work or upkeep. It's great. Right now I have great landlords so it's all good. Of course there are downsides: I'd love to paint, noise, etc. But there are definite advantages to renting as well.

 

[superme80]

I think renting is fine. My husband's great aunt lived alone in the same rental for about 40 years. If I was single, I would rent or own a condo. I find renting easier on maintenance and little to no yard work.

 

[IndyRnRfan]

We have been renters our entire lives (19 years so far, since I rented my first place sophomore year of college.) We LOVE being renters and have no plans to ever buy a house. Renting allows us to live in a far nicer and more expensive house than we could buy (we are in Orange County, CA) and it means ZERO stress about maintenance, and the constant worry of an expensive home expense. We can move when we need to without stressing about selling, etc. Renting is a totally acceptable and legitimate housing option. A house is NOT an investment, no matter how many people mistakingly believe it is.

How do you figure owning a house is not an investment? Just curious as to your thinking.

 

[lovemygoofy]

You know what the best part about being an adult is? You don't have to answer to anyone. I love it. Unless someone wants to chip in on my mortgage and by my handyman I don't give a hoot what he/she says about us renting. We've rented all over the country for the last 14 years and now facing 40 in the face. I have no regrets and sort of have a sick feeling even buying a house and may put it off just a bit longer.

OP, if you are happy and content with your renting don't worry about anything else.

 

[tvguy]

Yes you aren't building up equity, BUT you also aren't paying property taxes, maintenance, and your renters insurance is much lower than homeowner insurance in most cases. Those costs (especially upkeep and maintenance get overlooked in equity calculations a lot).

In the new economy renting is actually a smarter financial decision in more situations and the old norms about home ownership don't apply as often. (Some of this is dependent on your market)

I agree it is dependent on your market. My son and his wife are wrestling with the reality that they are paying $900 rent for a condo they could own for $550 a month with association fees. Homeowners insurance is only $100 a year more over the cost of renters insurance. Yes, if the stove or fridge, dishwasher or washer or dryer die, they have to pay or fix or replace them, but the $450 savings per month would buy a brand new of any of those appliances but the fridge.
It is also why several of my co-workers who have moved up to bigger homes have kept their other home as a rental. Even with a property manager, they can clear at least $150 a month profit after paying all the costs. Rents here are nuts.

I'm 58, and I have lived in a rental exactly 13 months of my life. I was just raised to believe it's better to own, no matter how small a home you buy.

 

[RyansMum]

Thank you all for your responses. I'm definitely going to continue weighing my options but its helpful to know there are positives to renting. I think in my case its a smarter financial decision.

My financial advisor said that on top of the cost of mortgage and land tax per month, we should have an extra 20% to put away for renovation and house needs. There has been times when I needed more than 20% for an emergency fix! If my husband were to pass, I would sell this house and get an apartment. No lawn maintenance, shovelling, leaky roof, etc to deal with.

 

[Minniesgal]

For me the problem with renting is that you are building equity for someone else instead of yourself.

The point to buying a home is to have a home that you own outright when you retire so once you are on a fixed income you don't have rent to pay. Maintenance costs are well below what you lose renting