Many newlyweds dream of owning a home together and are eager to start the home buying process not long after the nuptials. Homeownership certainly has its rewards. But for some, renting just might be a better fit. Below are five reasons why it could be better to rent rather than purchase as a newly married couple.
1. Renting can be less expensive
Owning a home means that if anything goes wrong, you have to reach into your own pockets to fix it. Many newlyweds can only afford to purchase an older home, which puts them at risk for more costly repairs. By renting an apartment, you and your spouse can live maintenance-free. This means you won’t have to lift a finger for repairs – and that saves you some cash!
In addition to surprise repairs, homeowners also have to pay property taxes and other fees. If you’re considering buying, be sure to get a clear understanding of what you’ll be spending each month in regards to bills, HOA fees, and your mortgage. Ask a lender specialist or realtor for a breakdown of the costs associated with purchasing a home.
2. Renting gives you more flexibility to move
If you need to move from an apartment, it’s a pretty simple process. A house on the hand is going to be a lot more time consuming and costly. Unlike renters, homeowners can’t just get up and move because of a job transfer or dislike of the area. They need to sell the home in order to move, which entails hiring a listing agent, combing through offers, await contingency periods and hope the buyer’s financing can be secured. Moving out of an apartment usually consists of a 60-day written notice and possibly a fee if you’re leaving before the lease expires. Also, if you own a home, you want some kind of return on your investment, and moving within five years of purchase isn’t advisable.
3. You might buy a house that doesn’t fit your future needs
Starting out, it might be difficult to predict what you need in a house for the long-term. For example, if you purchased a starter home, only to soon find out you need more space for a growing family, you could end up stressed out and regretting your home-buying decision. Apartments are great for couples starting a family; it allows them to figure out what they need and plan for the future.
If you live in an apartment and find out you’re in need of more space, Apartments.com has tons of two- and three-bedroom apartments, as well as townhouses, condos, and single-family homes for rent.
4. Buying a home is stressful
The first year of marriage is often viewed as the most stressful, because you’re adjusting to married life and learning about yourself and your spouse. Figuring and combining finances can also be demanding. Instead of dealing with the legal and financial aspects of buying a house, take the first year to enjoy life as a married couple by taking a family vacation.
5. You can save for a nest egg
It’s recommended –but not mandatory- to have at least 20 percent down for the purchase of a home. Even if you have the amount saved, you may not want to spend it right away. If you put the cash into an account that accrues interest, you’ll be even more prepared to buy your dream home within a few years.
Homeownership is a great goal for newlyweds, but don’t be afraid to make it a long-term goal. By renting as newlyweds, you’ll have the flexibility to go wherever life takes you. When the time comes for you to buy, you and your spouse will know it.
