In cities like New York, San Francisco, and Seattle, the opportunities are sky-high, and so are the housing prices. The high costs of real estate would set fire to your pockets, and here, renting is the sensible thing to do. For instance, in New York City, where the population is about 8.7 million, which is no less, and the real estate prices look like the skyscrapers in Manhattan. 

Since people move to New York to make a career and are generally on a budget, they prefer looking for shared living in NYC as they are cheaper accommodation to have initially. Thus finding a room for rent in New York City is any day better than buying a place there, if you aren’t financially very stable yet. 

 

Always rent rather than buying. Image Source: Canva

We didn't come with just facts, but reasonings that renting a place is better than buying. Even though a rental is a temporary home, as a young working professional focusing on a career, renting would be a wise choice as it gives you space to grow and move freely without tying you down to a single city. Here are seven reasons why renting a place is better than buying. 

1. Scope of growth

2. No huge expenses

3. No real estate tax 

4. No down payment

5. Fixed rent

6. Not getting stuck with damages

7. Lower insurance cost

 

Don’t buy, Just rent. Image Source: Canva

As a working professional or a student, renting gives to the broad scope of moving out of the city or in the town, depending on what work requires. You can move out to a place near work after getting a new job by serving a short term notice to tha landlord. You can even look for room for rent, depending on how much you earn, and even find a roommate to share rent. Renting makes life easier in many more ways. For example, if a college graduate moves to NYC, they can find cheap rooms for rent in NYC and start job hunting. They may then move close to work using a roommate finder to find rooms for rent in NYC. 

It is no doubt that buying a place would cost a lot more than renting it. The responsibility to maintain that property and make all the repairs are an additional expense to the owner. On the other hand, when you rent a place, all these major repairs are taken care of by the landlord. 

In addition to the cost of the place and the maintenance, the owner is bound to pay real estate tax each year. This tax is not a small amount, and an average family spends up to 2.5 thousand real estate tax. While you rent a place, you don’t need to fret about any such taxes.

Not buying means no down payment. You can move into rental just by paying the security deposit, which is significantly less in comparison to the down payment of a house. For instance, in New York City, one has to have 20% of the listing amount in hand as the down payment for the property that implies that to buy a property worth a hundred thousand dollars, you need 20,000 dollars in-hand as a downpayment. A pretty huge sum, isn't it? On the other hand, a room for rent in NYC with a monthly rent of $900 would have only $1,800 of security deposit. 

When you rent a property, the monthly rent remains fixed until the renewal of the lease agreement. Additionally, due to the rent control laws, the rent is increased at a fixed and predictable rate. 

One of the major disadvantages of buying a place is that you sign up for everything that comes with it. While you enjoy the good part of personalizing all you want and having the entire home to yourself. There are a few things that break the deal. As an owner, you are stuck with the property as the house values increase and decrease depending on the neighborhood amenities. You are also responsible for fixing damages that take place over time, which can be expensive at times. Additionally, to use the amenities in a home, you need to spend loads of money installing a dishwasher, pantry, and a built-in wardrobe. 

We all are quite familiar with the fact that the cost of a renters insurance policy is way less than a homeowner's insurance policy. Renter's insurance policy covers basically all the valuables and furniture and cost about 200 dollars per year. The homeowner's insurance policy, on the other hand, can cost up to 1.5 thousand dollars. 

It is quite evident that renting a place is far better than buying a place. Especially when you are young, it is best to rent, and you may purchase a place later in life to start a family.