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7 reasons renting is better than buying.
Homeownership may not be all it& #39;s cracked up to be.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> *THREAD*
Homeownership may not be all it& #39;s cracked up to be.
1. You aren& #39;t tied to one place
People change jobs a lot.
If you& #39;re self-employed, you may need to move to where the action is.
Whatever the reason, buying a home makes it tough to move quickly if you need to.
Rent for location independence. Especially early in your career.
People change jobs a lot.
If you& #39;re self-employed, you may need to move to where the action is.
Whatever the reason, buying a home makes it tough to move quickly if you need to.
Rent for location independence. Especially early in your career.
2. Less upfront cost
You& #39;re going to have to pay up to get into a home.
Traditional mortgages come with a 20% down payment. If you don& #39;t have that, you& #39;ll probably pay a higher interest rate or mortgage insurance.
Renters just have to pay a month& #39;s deposit in advance.
You& #39;re going to have to pay up to get into a home.
Traditional mortgages come with a 20% down payment. If you don& #39;t have that, you& #39;ll probably pay a higher interest rate or mortgage insurance.
Renters just have to pay a month& #39;s deposit in advance.
3. Sweet amenities
Decent apartment complexes will have nice perks:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">Fitness centers
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">Coffee machines
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">Shared office spaces
This won& #39;t make or break you. But it& #39;s stuff you would have to pay for as a homeowner.
Decent apartment complexes will have nice perks:
This won& #39;t make or break you. But it& #39;s stuff you would have to pay for as a homeowner.
4. Money leftover to invest
This is the big one.
An S&P 500 index fund returns close to 10% every year.
Most homes will not return anywhere close to that.
As a renter, you will have some extra cash to invest. Put it in a stock market index fund and watch it growhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
This is the big one.
An S&P 500 index fund returns close to 10% every year.
Most homes will not return anywhere close to that.
As a renter, you will have some extra cash to invest. Put it in a stock market index fund and watch it grow
5. No maintenance costs
Rule of thumb is that you will spend 1% of the home price on maintenance every year.
For a $300K house, that& #39;s $30K after 10 years. And that& #39;s probably low.
Maintaining a home is expensive and stressful.
Renting does away with all of that.
Rule of thumb is that you will spend 1% of the home price on maintenance every year.
For a $300K house, that& #39;s $30K after 10 years. And that& #39;s probably low.
Maintaining a home is expensive and stressful.
Renting does away with all of that.
6. Lower insurance cost
The monthly cost for renters insurance is usually a tenth of homeowners insurance.
There& #39;s also much more liability with a home. Anyone can sue you if they get hurt on your property.
Make sure to shovel those sidewalks well.https://abs.twimg.com/emoji/v2/... draggable="false" alt="❄️" title="Schneeflocke" aria-label="Emoji: Schneeflocke">
The monthly cost for renters insurance is usually a tenth of homeowners insurance.
There& #39;s also much more liability with a home. Anyone can sue you if they get hurt on your property.
Make sure to shovel those sidewalks well.
7. More difficult to deduct interest
Being able to deduct interest payments is touted as a huge advantage of homeownership.
The new tax law makes it much harder to claim this deduction. So that perk is pretty much gone for most folks.
Don& #39;t let the tax tail wag the dog.
Being able to deduct interest payments is touted as a huge advantage of homeownership.
The new tax law makes it much harder to claim this deduction. So that perk is pretty much gone for most folks.
Don& #39;t let the tax tail wag the dog.
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