5 Things Renters Do Not Have To Worry About
All your friends, relatives and colleagues are buying homes and making their future secure. Their success in doing that builds around you a silent but potent pressure to follow suit. Not that you are not trying, but you are just not able to save enough to make the upfront payment. Your monthly income leaves no room for you to employ yourself into saving. On the other hand, you have been changing jobs frequently and banks are not too eager to lend you money. From where you see it, you are going to live in a rented accommodation for a long time. Now, is that something you should be unhappy about? Not really! There is a brighter side of this that should cheer you up.
A renter is a free mover
All of a sudden, you receive a call from a renowned multinational company which is offering you a job in another city. The raise they are offering is just too good to refuse. Someone who is living in his own house in the city will have to refuse the offer, even if reluctantly. Once you are tied to a house, there are many obligations to fulfill with regard to the property. If a same offer is made to someone who is living on rent, it would be promptly accepted. Often, there are no strings attached with a rented accommodation.
A renter has nothing to lose
Suppose you hit some financial difficulty and are not able to pay your rent for three months in a row. If you share a fine rapport with your landlord, you will be able to convince him and pay him the outstanding money when you can without having to pay any interest. The same is not true if you own a house for which you are paying an EMI. In case of a default in payment, you will be liable to pay a penalty. If the default occurs for a longer period, the bank might initiate proceedings to claim the property. This may cause a lot of heartburn. There is only so much scope for negotiation as far as matters of home finance are concerned—negotiations would often not help. In case of a disagreement with your landlord over the rent, on the other hand, you can always leave the premises without any bad feeling.
A renter can always clear
The common perception that the money paid as rent goes waste while the money paid as an EMI is an investment is flawed at various levels. First of all, in case you buy a house purely to save the rent, you will soon find yourself spending about double the amount as EMI for a similar dwelling. After doing all the calculations, you might so find that you are paying much for than the real worth of the property. It might turn out to be a case of you biting more than you can chew. A renter, on the other hand, knows exactly how much he has to pay in rent and is also clear about getting a return on this investment. There will be no disillusionment waiting for him in future.
A renter can make an easy exit
So, you do not like your landlord, who you think is nosy and intruding. You wait for a while and find another accommodation soon. You do not mind the shifting; for you, peace of your mind is of the supreme concern. Then, there is your friend who bought a flat in a housing society. After spending some time here, your friend realised the locality is not really safe. He is quite worried for he and his wife leave behind their 10-year-old child when they are off to work. There have been several reports of petty crimes taking place in the vicinity. Even if your friend wants to quickly sell the house and move out, he would find it an extremely tiresome task to accomplish.
A renter can save
This is one point we often ignore. As you struggle to earn enough to pay the monthly outgo towards your home loan and run the household, you might find it extremely hard to save money for other purposes. In short, after becoming a house owner, all your money flow is channelised in one direction. There is hardly any ready money to deal with other things. What if there is a personal emergency and you need funds? You might have to borrow more from a bank. Money wise, a renter will always have the leg room to deal with situations such as these.