7 Benefits of Renting a Home Instead of Buying in Fort Worth
7 Benefits of Renting a Home Instead of Buying in Fort Worth
When it comes to renting vs buying, there are many benefits of renting a home you haven't thought of. Click here to learn more.
Keyword(s): benefits of renting a home
The benefits of renting a home in Fort Worth are overlooked by many property owners in favor of the region's fertile housing inventory. Yes, not even a global pandemic has been able to tank home sales.
Nevertheless, it's still a good idea to rent instead of buy. Before we get into those reasons, though, let's first explore a few myths about homeownership in general. Tell us if you've ever heard these before (or some variation).
It Is an Investment
Proponents of homeownership will often tell you that when you buy a home, you're making an investment. That's true in the sense that you're pouring money into the property. It's not true when you think of an investment as something that's supposed to earn a profit, however.
Allow us to explain. In October 2019, year-over-year value increases hit a 7-year low for housing appreciation (3.12 percent when adjusted for inflation). That doesn't even factor in the 1-3 percent of the purchase price you should be setting aside each year for maintenance and repairs or the mortgage interest you'll pay on a 30-year note.
Basically, the best to hope for is break-even. At the most, you may turn a small profit if you're in a fertile market like Fort Worth.
Renting Means You Throw Your Money Away
Even if you're not going to turn a profit on your home purchase, proponents say, you're still better off buying instead of renting. That's because the rent you pay is going to someone else's pocket instead of your own. There's value in this theory, but it ignores many of the seven main benefits we're about to cover.
Homeownership Costs Are Fixed
In other words, you agree to a fixed-rate mortgage, and no one can raise your rent. Renters, on the other hand, have to worry about possible spikes in rent with each new lease. Fair, but once again, it doesn't tell the whole story.
Now that we've covered the reasons people will give you not to rent, let's move onto the benefits. We're confident that hearing these will make you rethink everything you've just heard.
1. Forget About Maintenance and Repairs
Renting a home, duplex, or apartment, has one distinct advantage over homeownership. That's the budgeted cost for maintenance and repairs.
As we've already mentioned, many homeownership proponents will tell you to budget 1-3 percent of the home's purchase price for this obligation each year. On a $150,000 home with a 30-year mortgage of $900 per month, that shakes out to an extra $125-$375 per month.
Now tack that onto the $900. You're left with a $1,000-plus monthly payment on a property that you could normally rent for just the $900.
2. Amenities You Do Not Have to Pay For
Home rental benefits go beyond paying a lower amount to live there. You also get to enjoy the benefits of swimming pools, back decks, spacious yards, and other perks without having to install them, upkeep them, or repair them yourself.
You'll be the envy of anyone who's ever paid to install an inground swimming pool! Those can cost $50,000 or more to put in and thousands in annual maintenance. (And they seldom benefit the owner when it's time to sell.)
3. Deposits Over Down Payments
For a home rental, For Worth tenants get to forgo the 20 percent down payments for the much more manageable security deposit. A security deposit is typically returned to the renter upon move-out so long as they left the property as they found it.
Twenty-percent down payments build equity. However, they're also an upfront expense of $30,000 on the aforementioned $150,000 home. Who has that kind of money laying around?
4. You Can Live Anywhere
One of the big home rental benefits in Fort Worth is that you can live in a much nicer neighborhood than you might typically be able to afford. What enables this is many of the things we've already mentioned.
Lower rent payments
No need to include a housing maintenance line item in your budget
Avoiding mortgage hassles like qualifying for a loan on less-than-excellent credit when you can afford the rent itself
Also, home sales can be unaffordable in certain places. On the other hand, renting is possible virtually everywhere. There are even specialists who can walk you through the process of leasing a home.
5. Ability to Downsize
Home rentals give you an easier path to downsizing when the time has come to take on "less house." Empty-nesters, retirees, widows, and divorced individuals know exactly what that's all about.
Yes, a large house can feel spacious. At a certain point, though, it can also be lonely. Rentals go by six- or 12-month leases as opposed to 15- and 30-year mortgages.
Trying to sell a home is unpredictable and can take months to successfully complete. The end of a lease gives you more flexibility and smoother transitions.
6. No Homeowners Insurance
Homeowners insurance adds another couple hundred dollars per month to a house payment each year on average. That's especially true in the Fort Worth area.
Renters don't have the same need because the actual owner is already carrying insurance. All the renter has to worry about is a policy to cover their personal possessions.
7. Lower Utility Bills
Many properties in the Fort Worth area have gone to all-electric or solar, two affordable energy solutions compared to some of the older properties out there. Utility bills will go down when you rent because you'll be benefitting from ongoing house maintenance and upgrades that are designed to save the owner money.
As their homes become more efficient, you reap the rewards with lower payments. Best of all, you're not having to do the capital outlay to get the home to the point where it needs to be.
Enjoy the Benefits of Renting a Home
You now understand the benefits of renting a home over actually buying one. Are you ready to get started? If so, you may want to start with this selection of Fort Worth homes that are now on the market.
There is something out there for everyone. That's especially true if you're someone who wants the comfort and security of homeownership without the stresses of it. Good luck as you start your search!