Owning a home remains one of the major components of the American Dream. While home ownership comes with its benefits, it has its downsides too, particularly if you’re newly married. Here are a few reasons that renting is a better option for young newlyweds.
When you rent a house or an apartment, the landlord typically takes care of most repairs. When you own a home, repairs cost you time and money, two resources that may be in short supply when you first get married. According to SouthGate Companies, renting is a great option if you don’t like the idea of mowing your own lawn or doing major repairs around the house.
Most of the time, renting costs less than buying does. Buying a home costs a great deal of money upfront. The situation requires that you either put at least 20% down as a down payment or that you pay more on your mortgage. For those who can’t put down a down payment, their lenders will require that they buy private mortgage insurance (PMI). PMI pays off your home mortgage loan in the event that you can’t. Aside from all of this, buying a home requires closing costs, fees, and other hidden expenses that most newlyweds aren’t in a position to cover. When you rent, you only worry about paying rent.
It’s More Flexible
Being upwardly mobile requires flexibility, which Mom and Dad Money says you get from renting instead of owning. On the one hand, owning a home provides you with a lot of stability. On the other hand, you have pretty close to zero flexibility. Chances are good that when you first get married, you’re also just starting your career. The early years of a career can mean moving house in order to move up in your career. If you sell your home quickly, then great. What if you can’t? That’s one of the downsides of owning. Some people are lucky. They start with a company early in their career, and they stay at that company for a while. However, this is becoming less and less the norm.
While many people associate homeownership with the American Dream, the truth is that it really is only a part of it. Career opportunities, saving money, and the ability to be flexible make renting a more attractive option for many newlyweds.
Have you built up enough savings to own your own place? Find your new home today.