When you think about the American Dream, buying a home is at the top of the list. Everyone is working towards becoming a homeowner and moving out of their apartment into a bungalow with a lovely yard so they can stop paying rent every month. And while owning a home makes you feel more secure, current trends show that more and more people are preferring to rent houses instead of buying.
If you’re planning to move to San Francisco and wondering whether to buy a home or rent one, this article is for you.
Inside, we have compiled five simple reasons why renting is a better option than buying. Let’s dive straight in!
Renting a home is cheaper than buying in the long run
Many people mistakenly assume that buying a home is cheaper since you don’t have to pay rent each month. But buying a home comes with many hidden costs that may become quite a burden in the long term.
For example, you have to pay for maintenance and repair costs, including lawn maintenance and home improvement. You will also need to pay property rates – essentially real estate taxes paid to the county.
On the other hand, maintenance, repair, garbage disposal, and other similar services are the landlord’s responsibility when you rent a home.
Access social amenities at no extra cost
The most significant advantage of renting a home in an apartment complex is the community you get to be a part of. Due to economies of scale, real estate developers can include amenities such as pools, gyms, and running tracks, especially for high-end monthly apartments. Tenants can then access these amenities without having to pay.
If you’re looking to buy a home, it would probably cost you thousands of dollars to install these features in your home. It would also cost you a lot of money to maintain them and keep them running – electricity bills and cleaning services for your pool.
No hefty down payments
When buying a house with a mortgage, you will need to pay a down payment. In most cases, this will usually amount to about 20% of the value of the property. For a house worth $300,000, you’ll need to put down at least $60,000. That’s a hefty sum.
On the other hand, renting a house only requires paying a security deposit that’s typically equivalent to one month’s rent. As if that’s not enough, the sum is refunded at the end of the lease, provided you did no damage to the property.
Rental apartments offer you more flexibility
One of the reasons so many people prefer to rent a house rather than buy one is the flexibility renting gives them. If you’re one of those fun, adventurous, and spontaneous people that could randomly decide to move to a different city, you don’t want to be tied down by a house.
Most rental leases require tenants to give a month’s notice when they want to move out. Selling a home takes way more time and is incredibly exhausting. And since many rental apartments come furnished, you won’t even have to worry about moving with your furniture. How brilliant is that?
Upgrades are someone else’s problem
Renting a house saves you from paying for renovations and remodeling. When you don’t own the space and are simply renting it, you can live with the poorly designed bathroom or the old kitchen – or move into a home with better features.
Homeowners don’t have this luxury. They’re expected to remodel and upgrade their homes every couple of years. This is the only way to keep the value of their property high to increase their chances of getting better deals on the resale.
To rent or buy a home in SF?
Well, the decision is all up to you at this point. But our advice? You should probably consider renting a home when moving to San Francisco instead of buying.
This will save you initial down payment costs; it will also keep you from spending money maintaining, repairing, and renovating your home.
Renting also gives you access to amenities such as swimming pools, gyms, and spas – a privilege you would otherwise not enjoy if you bought your own home. Installing any of these features in your home costs quite a bit of cash.
Finally, renting makes you more flexible than when owning a home. This is especially truer if you work remotely and don’t want to get bogged down by a home you can’t easily leave behind.
So, the ball is now in your court; make your decision. Good luck!