Many newlyweds dream of owning a home together, and are eager to start the process as soon as they are married. Home ownership can certainly have its rewards, but it isn't right for everyone. Below are five reasons why it may be better to rent than to buy as a recently-wed couple.
1. Renting Can be Less Expensive
Owning a home means that if anything goes wrong, it is up to you, and your wallet, to fix it. Many newlyweds can only afford to purchase older homes, and that puts them at greater risk of having to make major repairs. By renting a house or apartment, you won't have to worry about unexpected home repairs, which will help you to save for the future.
In addition to surprise repairs, owning a home also comes with its share of taxes and fees that you may not be aware of. Before purchasing a house, be sure to get a clear picture of what you will really be spending each month.
2. Renting Gives You More Flexibility to Move
One of you may need to switch jobs, move closer to aging parents, or be near a specific school for a child. For these reasons, it is a good idea to wait a few years before committing to one location. Selling your house within five years of buying is generally not advised, as you may not get a return on your investment, and also comes with many more expenses than moving from one rental to another.
3. You Might Buy the Wrong House for Your Needs
When you are starting out as a couple, it may be difficult to predict what you might need from a house. For example, if you buy a huge house in anticipation of having a large family, you may regret having to heat and cool so much space if the big family never comes along. Alternatively, you may decide to purchase a small home, only to find later that you need more space for a rapidly growing family.
4. Buying a Home is Stressful
The first year of marriage is often viewed as being the most stressful. Most newlyweds trying to purchase real estate will likely find themselves overwhelmed. With all of the financial and legal aspects of the home buying process, along with adjusting to married life, it can be a lot to take in. Instead of taking on such a huge task right after marriage, take this time to enjoy each other, travel, and have fun together.
5. You Can Save Your Nest Egg
Even if you have the money for a down payment on a house, you might not want to spend it right away. If you put your money into an account that will grow your nest egg over time, you will be even more prepared to buy your dream home in a few years.
Home ownership is a great goal to have as a couple, but don't be afraid to make it a long-term goal. By renting as newlyweds, you will have the flexibility to go wherever life takes you, and will be better prepared to purchase a home when the time is right.