Five Reasons to Rent Rather than Buy

I take the responsibility of guiding my clients through smart real estate decisions extremely seriously—even if that means counseling them that now is not the right time for them to buy. There are plenty of good reasons to own a house, but today I wanted to focus on some of the situations that might make renting a better decision.

If you’re planning on owning the house for less than 3-5 years.

Because of the costs associated with buying and selling property, buying doesn’t make much sense as a short-term investment. More so, there are tax consequences for owning a home for less than two years. The New York Times has a fantastic rent versus buy calculator, which is a great tool to see how many years it would take for buying to be more worthwhile than renting. According to Architectural Digest, “Smart real-estate purchases are like your favorite red wine: Time makes them better.”

You’re facing a huge life transition.

New job? New baby? Inheritance? New partner? Before jumping into a new house, it’s wise to let the waves settle for a few months before committing. While finding a new home is super exciting, moving is ranked as one of the most stressful life events and should ideally be embarked upon with a clear mind. Giving yourself a bit of space between a big life change and another big life change (buying a new house) is never a bad idea.

You don’t have interest in dealing with yard maintenance.

For a lot of people, owning their home and all of the requisite responsibilities and joys are part of the fun of homeownership. If you’re someone who would rather leave the lawn care and upkeep to someone else, renting may be a better path. Another option would be a community with an HOA that maintains yard space as well as communal areas.

You’re not financially stable enough to comfortably own a home.

The last thing anyone wants is to be house poor, stuck in a house they can’t properly afford. Even if you’re comfortable with your monthly mortgage payment, there are a number of costs to owning a home that you should also be aware of and account for. If buying a house is going to put you in a tenuous position financially, it might be better to wait a year or two to put more money into reserves so that owning won’t feel like a burden.

Thinking about buying brings you more worry than joy.

Renting is expensive. But you don’t have to worry about the water heater breaking or replacing the roof after a big hailstorm. You might value freedom and the potential for a spontaneous move more than the stability a house affords. While you pay a premium for that peace of mind, the luxury of not having to worry is well worth it for many people. Emotional energy and bandwidth are hard to put a price on, and if renting feels like a relief then it’s an option well worth considering.