One of the most common things that people do is buy real estate, especially when they are thinking about settling down. However, real estate comes at a price. It can be hard to tell if real estate prices have dropped, leaving you with no profit to show for your investment, or even worse, it can drop so much that you lose money overall, not making any profit on your investment over time. On the other hand, searching for potential rent options, at websites such as Oglasi,  makes more financial sense for some people than owning real estate. This does not necessarily mean renting out an apartment instead of getting a mortgage and buying a house but also includes making wise real estate decisions such as purchasing multi-family homes (duplexes, triplexes) instead of single-family homes.

For the most part, real estate is seen as a good investment, especially single-family homes. However, real estate comes at a price. Owning real estate often requires you to make significant investments to keep it up to date and function properly. You also have to worry about real estate laws, zoning laws, taxes on real-estate property if you are planning on owning the property long term, or else your real-estate portfolio can become obsolete relatively quickly due to these costly factors that will eat into your real estate profits over time making less of a return on investment compared to other options such as rental properties which typically do not require as much upkeep and real-estate taxes (depending on the real estate laws of the state).

There are two popular options for people looking for a roof over their head when it comes to real estate: rent or buy. Whether you should rent or buy real estate depends on various factors.

Here are seven main reasons to rent instead of buying a house.

You can’t afford to buy real estate

One of the main reasons why people choose to rent real estate is that they don’t have enough financial resources to buy real estate property for an extended period. Buying real estate property means making monthly payments until your loan gets paid off and signing up for a long-term renting contract at the same time, which makes it more difficult for people with little money but grand ambitions to take advantage of real estate’s potential returns.

You don’t want the actual estate

Some people prefer real life to real estate, so they pay real estate rent instead of buying real estate property. That’s because real life offers several advantages over real estate properties – friends, family, experience, and so on. You can find all this in your rented house or apartment, but it’s impossible to see these things in real estate properties that you live in alone with no one to chat with when bored. Renting is more social and dynamic than buying real estate. This is another reason why some people choose renting instead of buying their place to live in.

Fear of risk and debt

Investing money into real estate may come with risks such as losing investments due to real estate market fluctuations. Renting real estate allows you to avoid real estate risk and stay away from debt, which is why more and more people prefer renting real estate over buying real estate property that can be later resold for a fee.

You’re not sure how long you will live in one place

It’s always better to rent than buy real estate if you’re not sure how long you’ll live in one place because it’s challenging to get rid of real estate once your family grows or your business ventures take too much of your time. Whether you should rent or buy real estate depends on several factors such as the conditions at work, living standards, number of children, etc… If you happen to relocate in a few years, real estate becomes less profitable.

You want to avoid the dangers of foreclosure

Foreclosure is one of the main reasons why people decide against buying real estate property. If you cannot make your monthly payments for any reason, your real estate property will be foreclosed by the bank and sold to pay off your debts… which means you lose all of your investments in real-life property. When renting an apartment instead of buying a house, renters don’t have to sign up for long-term contracts and can leave whenever they need with 30 days prior notice avoiding foreclosure entirely!

Playing it safe is more important than maximizing returns

When it comes to real estate, real-life nature is the most important thing, not maximizing returns by putting all of your money in one place and hoping for the best, but playing it safe and diversifying. The more investment properties you own, the less risk you expose yourself to (and the less return on investment). When it comes to renting or buying a house, putting everything in one place means higher risk exposure instead of spreading risk across multiple assets, which decreases your total losses if any of these investments falls.

You are looking for income

Last but not least, some people rent houses because they need an extra income. No matter whether real estate is profitable these days, you can always count on the steady stream of rent from your tenant to add a few more bucks to your bank account each month. Suppose you live in an economy where real estate increases steadily for several years. In that case, it does not mean that real-estate prices will remain high indefinitely because real-estate markets are volatile to be considered safe investments long term. Economies change over time, and so do people’s lives, contributing to real estate pricing changes, making real estate riskier compared to other forms of investment.

In conclusion, renting offers several benefits over buying a house, including no responsibilities after signing up for long-term contracts, avoiding risk and debt, uncertainty about how long you will live in one place, fear of foreclosure, playing it safe, and looking for additional income.

7 Main Reasons to Rent Instead of Buying a House