Post from MilitaryByOwner
You’ve heard people say that renting is the same as throwing money away each month, since rental payments aren’t applied toward paying off a home loan. You’ve probably also heard that renting is more expensive than owning a home since landlords charge more in rent than their mortgage bill costs, that renting isn’t the same as having a home because renters can’t make modifications or customize property to their liking, and that people shouldn’t rent because no one should have to answer to a landlord. These things are mostly true.
But since we’re often reminded of the negative attributes of renting, I think it’s time to focus on why it can be a good thing. I’ve found four perks to renting a home instead of buying. See if you agree!
Renters don’t pay property tax. We’re taxed on everything. For every purchase, we pay a percentage of tax to the government to maintain and improve the world we live in. And a house is no exception! A homeowner’s property tax is determined by the tax jurisdiction and the value of the home. So while homeowners have perks to paying a mortgage and not renting, and have the luxury of customizing their property, renters have the luxury to not pay a hefty property tax.
Renters don’t lease or sell property. A huge perk to renting as a military family is the ability to move and take all responsibility with you. Renters don’t concern themselves over whether they should sell or lease the property when they receive orders to PCS. Instead, they give notice to their landlord and move on to the next place without looking back.
However, you might argue that being able to lease or sell a home is a great way to invest money, and I agree. Investing in real estate has great potential to be profitable, but it’s also risky.
As military families making frequent moves, you might find that renting is less emotionally taxing and financially freeing. Because you aren’t a homeowner, you don’t risk making a mortgage payment on a property located on the other side of the country in addition to a rental payment on your current home.
Renters don’t pay to maintain. If you’re a renter and something breaks in the house, what do you do? You call your landlord. If something breaks or regular maintenance is needed like a broken AC, water leak, new roofing, plumbing issues, etc., you aren’t responsible for its repair.
Renters don’t pay homeowners insurance. Homeowners insurance covers both the property and what’s inside so, on a very basic level, it’s expensive. Then you have to consider if you need additional coverage like flood or wind damage, and that increases the cost of insurance. As a renter, this isn’t your responsibility. You don’t have to pay for extensive insurance, however, you should always have renters insurance to protect your belongings!
Others may not be fond of renting, and may advise you not to, either. However, as a military family, renting property has several perks that might make it worthwhile for you.
To find rental listings near your military installation, visit MilitaryByOwner. Happy house hunting!