Every day, people buy homes when financially they’d be better off renting because it’s important to them to have a place to put down roots and because they see owning a home as an investment that can grow and as a source of tax deductions.
Similarly, people rent all the time for the flexibility and minimal responsibility it offers, even though they’d amass a larger net worth over time if they bought a place.
A homeowner may have to wait for a while to sell their house (especially if the neighborhood is no longer as desirable).
Overall, renters usually have more flexibility with their living arrangements.
I started my own company, Loewen Clovis Realty, as a way to provide my services for those that need it in the area.
Outside of real estate, I am usually biking around Clovis, hanging out with friends, reading, or attending church functions.Let’s face it, the United States is in a lot of debt.There are two ways that a government can pay off debt: inflation of the currency, or stopping the spending and letting the country go into a recession/depression. Renters are not affected nearly as much as homeowners in times of deflation.The reason is because your future may change in an instant, and it is a lot harder to move from an owned home than it is from a rental.I wrote an article about why it wouldn’t be cost effective to own unless you planned on staying for at least 2-5 years.While it is true that most homeowners pay less for their mortgage than a comparable rental, they also have to worry about maintenance issues.Some of these maintenance costs can be quite expensive; roof repairs, plumbing problems, painting, electrical issues, and more.Your rent payments are predictable payments, no worrying about unpredictable maintenance expenses that come up.If a person does not have a large down payment (at least 20%), they will probably have to pay Private Mortgage Insurance, which can make owning nearly as costly as renting.If you are in a situation where your living arrangements could change quickly, renting definitely offers more flexibility than owning.Some people just love to move often, and renting just works better for them.