The Cons Of Renting
Are you renting your home? Many people do. According to Statista, there were an estimated 43 million housing units occupied by renters in the US in 2020. While some people prefer this option over buying a house, it is important to note that there are cons to renting.
If you are renting your home, perhaps now is the time to consider a mortgage. As a mortgage broker in Florida, we can talk to you more about the processes involved. As you can see below, this could be the sensible option, as the cons to renting could be enough to make you reconsider your living position.
It Could Cost You More To Rent Than Buy
We all want to have financial freedom so when considering your finances, one of the biggest cons of renting could be the fact that you are a long way from that position.
Renting for a short time is perfectly acceptable but if you're renting for the long term, it could be costing you more than a mortgage.
With a mortgage, you will pay it off eventually. This means no more monthly payments to your lender so you will one day have more financial freedom. You can also get favorable rates on a mortgage, especially when you use the services of a mortgage broker. Your monthly mortgage payments could end up being less than your monthly rent payments, so you could free up some of your income.
Your Landlord Could Raise The Rent Of Your Property
As stated at Realtor.com, your landlord can't just raise your rent whenever they feel like it, but they can when your lease ends. So, if you have signed a one-year contract, your rent could go up after twelve months, and it could be after twenty-four months if you have signed a lease for two years. Check the length of your contract as it could be that your rent will increase when it comes time to renew your lease.
Rent increases are common and landlords can effectively charge what they like. While most will play fair with their tenants, there are those who give little thought to what a rent increase might mean to them. So, when going back to the previous con of renting, you could end up paying far more on rent than a typical mortgage payment. Is this fair? Not always, especially if the landlord cares more about money than your personal needs.
With a fixed-rate mortgage, your interest rate is locked so you know what you are paying each month. While you could also choose a variable-rate mortgage, many people choose a fixed-rate mortgage to help them budget for their other outgoings.
The Property Isn't Yours
When renting a home, you will be limited as to what you can do with the property. You won't be able to redecorate without the landlord's permission, and you won't be able to renovate in any other way either. Some landlords will also lay down a no-pet clause, which is bad news if you want the company of a cat, dog, or some other kind of animal.
One of the biggest cons of renting is that you won't be on the property ladder. This means you won't be able to build equity to increase your affordability to live elsewhere. You won't be able to pass the house down to younger members of your family either.
Should you own your home, you will have more freedom to do what you want. So, whether you want to paint the walls, extend upwards or outwards, or invite pets in, you will have no restrictions imposed upon you by a restrictive landlord
Talk To Us
If you are tired of the cons of renting, perhaps now is the time to consider a mortgage. As a top mortgage broker in Florida, we can try to answer your mortgage questions and put you on the property ladder. Get in touch with us using the contact details on our website and benefit from the services that we can provide.
1. Occupied housing units in the United States in 2020
2. Rules on raising rent
3. No Pet Clauses