Top 5 Reasons to Keep Renting
Why Renting is Better Than Buying
For many people renting is better than buying a home. We hear so much about how buying is better but for many people renting is the better choice. If you had purchased or refinanced a home in the last 10 years you would probably be underwater. You would have lost any down-payment you put down and all the money you put into a home. You may have ended up in a shortsale or unable to get rid of your home and have lost it to foreclosure. So here are 5 reasons renting is better:
1. Since 2006 housing prices have on average declined 26% and in some areas the declines were substantially more.
2. Approximately 25% of homeowners are currently underwater (homes are worth less than the mortgage).
3. 3 million homes have already been foreclosed upon since 2006 and it will be a few million more before the crisis is over.
4. Average yearly maintenance on a home is $3,300 (1-3% of purchase price every year and many years it will cost a lot more).
5. The average time to sell a home is 10.3 months.
So chances are that if you owned a home you would owe more than the value of the property or at least have very little equity in the home. Also don’t forget about the headaches. If you rent and your boiler goes you don’t have to pay for it. If and when the home needs a new roof that is not your obligation. KEEP ON RENTING.