Advantages of Renting

There are a lot of reasons that you hear to buy a house instead of rent. Among the ones people throw around a lot are that paying a landlord is like throwing out money and that purchasing real estate is always a good investment. However, not only are these tired phrases are simply not true but renting comes with several distinct advantages.

To begin with you are not "throwing away money" when you rent. True, you don't get your money back but you are getting something: a place to live. Also, the money that the homeowner gets back from the monthly payments is not always as high as you may think. After interest, property tax and insurance payments, as well as maintenance costs, homeowners end up "throwing out" quite a bit of cash too.

Additionally, the idea that real estate is a good investment is not exactly true. Homeownership can be risky. Fluctuations in the housing market can mean that a house can lose its value temporarily. However, "temporarily" can be for up to ten years.

On the other hand, renting as several advantages.

• You don't have to pay for or deal with the hassle of maintaining a property
• You don't have to wipe out your savings on a down payment
• You have the flexibility to move if you get relocated or if you have a growing family