If you’re a little spooked about being a homeowner after watching the subprime mortgage crisis unfold, consider the advantages of renting for a while. Choosing to rent a home or apartment doesn’t mean you won’t or can’t be a homeowner, it simply means that you recognize certain advantages that make sense for your current situation. Some of the advantages of renting include the following:

1. Freedom. If you’re not sure you’re going to stay settled in your current town for any length of time, it’s better to rent. Buying a house usually only makes sense if you plan to hold on to it for five years or more. In contrast, renting allows you the freedom to pick up and move when you need to without having to worry about selling your house first.
2. Less work. When you rent a house or an apartment, you usually have a landlord who takes care of all maintenance and repair work. This means that anytime something goes wrong or breaks within your living quarters, you simply need to contact your landlord to request a repair. The landlord is then responsible for the cost of the repair, including any labor required.
3. Fixed costs. When you sign a lease, you know exactly how much money you’ll be paying per month for the length of your lease. Owning a home, in contrast, can come with variable costs thanks to utilities, repairs, or a variable mortgage.
4. Less cash up-front. While most rental agreements require a deposit, the amount of the deposit rarely exceeds the cost of one month of rent. This means your deposit will likely be under $2,000. In contrast, most home ownership situations require a down payment of considerably more. Oftentimes lenders prefer a down payment of at least 20%. Considering that the average home price is $120,000 or more, this means you have to produce a payment of as much as $24,000.
5. No risk of loss. If you own your own home and the housing market crashes, you stand to lose thousands of dollars in your home investment. On top of that, you could find yourself upside down on your home loan if the value of your home drops to less than what you owe. With a rental, you simply owe what you agreed to pay for your lease – no more, and no less.
6. The ability to save for other items. For most homeowners, the cost of their mortgage and subsequent housing upkeep expenses are the largest items in their budgets. If the bulk of your money is going into your home, it may be difficult to save for other items such as a car, a retirement account, or a college fund. If you choose to rent, you can keep your housing costs low and effectively free up the rest of your money to go to the item of your choice.
7. Lower insurance costs. As a renter, you only need to insure the contents of your home or apartment. When you own a home, you’re required to get insurance for the actual house and sometimes even for the land on which the house is built.
8. Less tax impact. Homeowners are influenced directly by fluctuations in property values. Renters feel the impact to a lesser degree, as property taxes are only gradually built into the terms of a rental lease. Even then, an increase can’t be included until the length of one lease is up and a new one begins.

Ultimately, there is no right answer as to whether it’s better to rent or to buy a home. If you’re considering either, look over the advantages of renting and consider also the advantages of owning a house.