Owning a home is something that I’m sure most of us would like. However, let’s get a reality check everyone. Houses aren’t exactly cheap and if you’re looking to move out of your parent’s home, you might want to reconsider, lest you go broke. Nevertheless, if you’re looking to get your own place, you could always rent a place to stay. Here are a few reasons why renting is better than buying. Make sure to check out Bandar Botanic or Bukit Tinggi to seek out your own place to stay.
No Repair Or Maintenance Bills
One of the advantages of renting a property is the lack of maintenance and repair fees. This means that if you rent a home, your landlord is responsible for all maintenance, improvements, and repairs. When an appliance breaks down or your roof begins to leak, you notify your landlord, who is responsible for repairing or replacing it.
Homeowners, on the other hand, are liable for all costs associated with home repairs, maintenance, and renovation. It can get fairly expensive depending on the nature of the assignment (and when numerous tasks appear at the same time).
Another cost advantage of renting is having access to amenities that would otherwise be too expensive. Many midscale to affluent apartment complexes include amenities like an in-ground pool and a fitness centre at no additional cost to tenants.
A homeowner would have to spend thousands of dollars on installation and maintenance if they desired access to these advantages. Condo owners aren’t immune to these expenses, either. These costs are included in their homeowners association (HOA) dues, which are paid monthly.
Renters do not have to pay property taxes, which is one of the key advantages of renting over owning. Real estate taxes can be a significant financial burden for homeowners, and they differ by county. Property taxes can be expensive in some locations, costing thousands of dollars each year. Property taxes are calculated based on the projected property worth of the house and the quantity of land on which it is built, despite the fact that they can be complicated. Property taxes can be a huge financial burden for homeowners as new projects become larger and larger.
No Down Payment
The upfront payment is another area where renters have a better financial offer. In most cases, renters must pay a security deposit equal to one month’s rent. And that’s typically the end of it. If they don’t damage the rental property, the deposit should be refunded to them when they move out.
When you buy a house with a mortgage, you’ll need a substantial down payment—usually approximately 10% to 20% of the property’s worth. Of course, having a down payment means you have equity in your property, which grows as the mortgage is paid off. And if you buy a property outright, you have a valuable asset that renters will never have.
Even so, a down payment on a home is much greater than a security deposit on a rental. A RM40,000 down payment on a RM200,000 home is 20% of the purchase price. Imagine having to pay that amount when you have only just graduated.