There is a growing trend toward renting rather than buying, a choice being made by young professionals as well as retirees. According to the US Census Bureau, homeownership is at its lowest rate in 50 years, a reflection of the trend toward renting.
There are many advantages to renting. For young professionals, renting provides the flexibility to make career changes without worrying about selling a home. It relieves them of worry about mortgage debt. For retirees, renting means that they no longer have the care of maintaining a home. And they can enjoy amenities such as a pool and fitness center, without condo fees or HOA dues.
A renter will generally pay less in insurance and taxes and has no risk of loss of value in periods of recession.
Author Kelly Phillips Erb points out in Forbes magazine “Eleven Reason Why I Never Want to Own A House Again,” most of which relate to tax issues. She notes that a house is not always a good investment, and out of pocket expenses exceed savings. Actual interest paid on a mortgage may easily exceed the value of a deduction on federal income taxes. And in the event of a loss when selling, the loss is not deductible on an individual’s tax return.
Renting doesn’t mean sacrificing a lifestyle. Instead it means having more time to participate in the activities an individual enjoys.
To learn more about the build to rent market in SWFL, contact an expert member of the 9 Core Realty Team.