5 things you should rent instead of buy (and 10 things you didn't know you could rent)
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Four reasons to rent a home instead of buying one:
- If you plan to move soon. This is a no-brainer, but it must be said. You aren’t wasting your money by renting, if you’re planning to move soon. It makes sense to rent for now. You can always buy later when you get where you’re going. Renting will be much less stressful for a temporary situation.
- If your market is inflated. A little inflation never hurt anybody, but some housing markets are insane. If your living in an area with extremely inflated housing prices, you can expect that bubble to pop eventually and you may be stuck with a mortgage twice the size of your house’s actual value.
- If you’re saving to buy a home. Don’t rush into a bad loan because you don’t have enough money for a down-payment. Just because you can find a “no money down” loan, doesn’t mean you should take it. The interest will eat you alive. It’s better to save for a while and make a large down-payment.
- If you don’t want to worry. Too often, we get caught up thinking that these decisions are only about the math and we forget that money is an emotional thing. If you don’t want to worry about maintenance or taking care of your own home, it’s perfectly fine to rent. Do what works for you.
If you see the words “rent-to-own”, you should run away. Don’t do it. Renting to own is a great way to pay at least triple the normal price for furniture, appliances, and electronics.