Owning vs Renting: Why You May Want to Sell Your Home
Owning a home has long been the core of the American Dream.
For many, buying a first home is a sign of success and achievement. Buying a home is often considered a right of passage in many ways. But homeownership is not for everyone and can actually cause a lot of problems.
If you are considering owning vs renting, then this article is for you.
Further, even if you already bought a home, that does not mean you are stuck.
If you are sick of handling all the things that go along with homeownership, read on to find out why it may just be time to consider selling your house for a different lifestyle.
The Hidden Costs of Owning vs Renting a Home
People frequently tell us to buy a home because renting a home is essentially “throwing away your money.” The key idea is why pay rent when you can build equity with a mortgage payment.
In some sense, that may be true. However, this notion fails to capture the true literal and figurative costs of owning a home.
As you will read below, there are a number of ways you can “throw away money” when it comes to buying a house.
Most people who talk about building equity are ignoring the very real fact that the value of your house could decline. Anyone recall the financial crisis and bursted housing bubble of 2008?
Bottom line: if the value of your house goes down, you have just lost money.
Further, most people do not consider the cost of repairs, insurances, taxes, and HOA Fees. These costs can add up quickly and most of them are due on a monthly or annual basis.
Cost of Time
Another difficult truth is that every hour you spend working on your house is an hour that you could otherwise be out making money.
Unfortunately, few people ever mention the extreme amount of time that it takes to perform do-it-yourself repairs, paint a wall, mow the lawn, etc. All that time is lost cash in your pocket.
Cost of Lack of Flexibility
There is also a certain lack of flexibility that comes with owning a home.
For example, if your financial situation changes, it can be very difficult to make your mortgage payments on time, which could ruin your credit score.
Further, a house ties you to a single location. If gangs move into your neighborhood, you are stuck with them.
Further, your house ties to you a school district for a long time in a way that renting does not. You might be single now, but what if you have a baby?
Lastly, when you have a house tying you to one place, you miss out on opportunities to work abroad or move around. Mobility is a flexibility that millennials have come to embrace. That alone might be the reason you consider selling a house for cash.
Learn More About Improving Your Financial Future
Like so many things in life, the question of owning vs. renting is a matter of optimizing your financial well-being.
Achieving your best financial future requires learning. Look around our blog today to find unique perspectives on bettering your financial future.