When renting is a good housing option

One of our primary goals is to help people become homeowners. Sometimes, that makes people think that we’re “anti-renting.” But that’s not true! While we believe homeownership is a great long-term option for building strong neighborhoods and financial stability, we recognize that a housing mix is integral for healthy communities. We also know that renting is a better option for some circumstances and stages of life. Here are some examples of when renting might be better than buying a home. 

You’re not sure where you want to live long-term. 

Homes build wealth as a mid-to-long-term investment. To get a good return on your home purchase, you need to make payments toward your principal balance while your home appreciates in value. Both of those factors take time. If you’re unsure you want to live in a city or community long term, saving money for a down payment may be better while deciding where you want to plant your roots. Then you’ll be ready to make a purchase in a city you plan to call home for years to come. 

It would be hard for you to manage a house physically.

When you buy a house, it’s your responsibility. If something breaks, you must fix it or pay someone else to. Caring for a property alone may be hard if you have physical limitations. And if you are living alone, are on a fixed income or don’t have extra funding to hire people to help you, things can get out of hand quickly. When you rent, your landlord will be responsible for regular maintenance and routine repairs. All you have to do is clean your unit and follow your tenant guidelines. 

You’re working on reducing your debt.

Purchasing a home may not be wise, or even possible if you have significant debt. Renting space, especially when you split the cost with other working adults, can reduce how much money you spend on housing and help you put more of your income toward your debt. As you make payments, your debt-to-income ratio will decrease, positively impacting your credit score. It may take time, even years, but paying down your debt while renting will put you in a better financial position. And, that can support your future home purchase! 

Your income fluctuates.

If you’re an entrepreneur, shift worker or work in a profession where your income varies from month to month, then buying a home might not be the right option for you right now. To get approved for a mortgage, you have to demonstrate proof of consistent income, and if you cannot demonstrate your ability to pay, you may not be approved. This isn’t to say that you can’t buy a home if you’re not a salaried worker – but it might be wiser to wait until you have a better understanding of your average monthly income and can build an emergency fund that could cover you if you were short during a month. 

We can help you make it happen. 

While renting might be the best choice for your life right now, if you dream of owning a home, you can start working toward that goal today. No matter your circumstance, United Housing wants to help you make it happen. The process might take time and effort, but we can help you develop a plan to direct you toward homeownership. Connect with us today to learn more about our Homebuyer Education programming, financial counseling, credit support, down payment assistance and other programs.