MNeagle
6th October 2010, 08:19 AM
By Steve Thompson, Associated Content
My wife and I come from long lines of homeowners who value their home's equity. Aside from my wife's brother, we are the only renters in our extended family, and we constantly find ourselves defending our choice. But for us, the benefits of living mortgage-free far outweigh the downsides. Here are 10 reasons we rent:
1. No Property Taxes
Although they are lower here than in other parts of the country, property taxes would add a significant burden to our annual expenses. Many homeowners don't take this into account when shopping for a house, then find themselves strapped. Unbeknownst to us, taxes might be built into our rent, but at least there are no surprises.
2. No Association Fees
Homeowners associations would likely take another chunk of money from our income if we owned a condo, townhome or single-family house (though not all houses come with an HOA, many in Houston that I'd consider living in do). These fees could cover anything from lawn services to signage to community pool maintenance. Again, this might be included in the rent we pay now, but it's not an extra monthly payment.
3. No Maintenance Expenses
Perhaps one of the most important benefits of us living mortgage-free is the absence of maintenance costs. If my hot-water heater starts running cold or the dishwasher starts leaking, the property manager or landlord is responsible for fixing the problem. If we owned the home, we'd need to foot the bill.
4. No Roots
Other than a lease, there is nothing keeping my wife and I in our current home because we're mortgage-free. As soon as our lease expires, we can move across town or across the country without dealing with real estate brokers, finicky buyers or disheartening inspections. We can just pack up and move on.
5. Free Utilities
Although far from universal, free utilities are common among Houston rentals. My wife and I can get free water, free sewage, free heat, free electricity, free basic cable and free trash pick-up included in our rent.
6. Lower Utilities
We have lived in several rented condos and townhomes, which are generally smaller and less exposed to the elements than single-family houses. Our last townhome, for example, only had windows on the north and south sides, which meant that the summer sun never came through to heat up the house during the summer. This is a big perk in a place like Houston, where summers are excruciatingly warm.
7. Free Perks
When living mortgage-free in an apartment, townhome, or condominium complex, the community amenities are well worth the rent. Pools, fitness centers, DVD libraries, book libraries, juice bars, walking trails, ponds, and more are all common features. And with none of the aforementioned HOA fees to diminish their value.
8. Less Risk
As suggested by the University of Maryland University College, there is less risk associated with renting. When living mortgage-free, I (and renters like me) don't have to worry about coming up with a large down payment and risking foreclosure or loss of equity if the market tanks.
9. Lower Insurance Rates
The renters insurance we pay is less expensive than the homeowners insurance we'd need if we owned a single-family home because we don't need to insure the actual dwelling -- just the personal property inside.
10. Opportunities for Investments
Money that would be tied up in the equity of my house if I were a homeowner is instead used to invest. My wife and I are both self-employed, so we don't have the benefits packages often available to employed professionals. Therefore, we put every extra dime we make into our retirement account. The money we pay in rent might get "flushed down the toilet," as homeowners often say, but the money we don't spend on mortgages, HOA fees and maintenance expenses is invested and earning interest.
http://finance.yahoo.com/family-home/article/110934/first-person-perspective-from-renters-10-reasons-we-live-mortgage-free
My wife and I come from long lines of homeowners who value their home's equity. Aside from my wife's brother, we are the only renters in our extended family, and we constantly find ourselves defending our choice. But for us, the benefits of living mortgage-free far outweigh the downsides. Here are 10 reasons we rent:
1. No Property Taxes
Although they are lower here than in other parts of the country, property taxes would add a significant burden to our annual expenses. Many homeowners don't take this into account when shopping for a house, then find themselves strapped. Unbeknownst to us, taxes might be built into our rent, but at least there are no surprises.
2. No Association Fees
Homeowners associations would likely take another chunk of money from our income if we owned a condo, townhome or single-family house (though not all houses come with an HOA, many in Houston that I'd consider living in do). These fees could cover anything from lawn services to signage to community pool maintenance. Again, this might be included in the rent we pay now, but it's not an extra monthly payment.
3. No Maintenance Expenses
Perhaps one of the most important benefits of us living mortgage-free is the absence of maintenance costs. If my hot-water heater starts running cold or the dishwasher starts leaking, the property manager or landlord is responsible for fixing the problem. If we owned the home, we'd need to foot the bill.
4. No Roots
Other than a lease, there is nothing keeping my wife and I in our current home because we're mortgage-free. As soon as our lease expires, we can move across town or across the country without dealing with real estate brokers, finicky buyers or disheartening inspections. We can just pack up and move on.
5. Free Utilities
Although far from universal, free utilities are common among Houston rentals. My wife and I can get free water, free sewage, free heat, free electricity, free basic cable and free trash pick-up included in our rent.
6. Lower Utilities
We have lived in several rented condos and townhomes, which are generally smaller and less exposed to the elements than single-family houses. Our last townhome, for example, only had windows on the north and south sides, which meant that the summer sun never came through to heat up the house during the summer. This is a big perk in a place like Houston, where summers are excruciatingly warm.
7. Free Perks
When living mortgage-free in an apartment, townhome, or condominium complex, the community amenities are well worth the rent. Pools, fitness centers, DVD libraries, book libraries, juice bars, walking trails, ponds, and more are all common features. And with none of the aforementioned HOA fees to diminish their value.
8. Less Risk
As suggested by the University of Maryland University College, there is less risk associated with renting. When living mortgage-free, I (and renters like me) don't have to worry about coming up with a large down payment and risking foreclosure or loss of equity if the market tanks.
9. Lower Insurance Rates
The renters insurance we pay is less expensive than the homeowners insurance we'd need if we owned a single-family home because we don't need to insure the actual dwelling -- just the personal property inside.
10. Opportunities for Investments
Money that would be tied up in the equity of my house if I were a homeowner is instead used to invest. My wife and I are both self-employed, so we don't have the benefits packages often available to employed professionals. Therefore, we put every extra dime we make into our retirement account. The money we pay in rent might get "flushed down the toilet," as homeowners often say, but the money we don't spend on mortgages, HOA fees and maintenance expenses is invested and earning interest.
http://finance.yahoo.com/family-home/article/110934/first-person-perspective-from-renters-10-reasons-we-live-mortgage-free