Reasons to Rent in Your 30s and 40s
For most, buying a house is one of the biggest investments they will make in their lifetime. For those still renting in their 30s and 40s, you may feel as if you’re falling behind and watching all of your friends pay off their mortgages while you think you missed your opportunity to become a homeowner. Before you start criticizing yourself for missing out, look at some reasons why waiting to buy property can be seen as a wise decision.
1. You Can Build Your Credit Score
In your 20s you might make the minimum payments on your credit balances because it was the only option you had. That doesn’t put you in a great position for getting a competitive mortgage interest rate. With a decade under your belt, you can build those scores up, making it easier to get a reasonable mortgage rate.
2. You’ll Have More Time to Save for a Deposit
Saving for a deposit is no easy task. Let’s be honest, in your 20s you probably aren’t too concerned with saving up for a down payment on your future home. You’re focused on paying off student loans and credit card debt, traveling and living your best life before it’s time to settle down. If you start saving a modest amount in your 30s you can have a healthy down payment ready to go a decade later. This extra time gives you plenty of opportunity to save for a deposit on a home.
3. Student Loans Might be Paid Off
It may seem like your student loans will never be paid off. By your 40s, being student debt-free is more likely to be a reality. Less debt means more money for a mortgage once those student loans are gone.
4. Flexibility of Where You Live
Last year you lived in the city, this year lived near the coast, but next year you want to relocate to be closer to family. As a renter you have the flexibility to choose where you want to live from year to year. As most leases end within six months to a year, it allows you to pick up and leave whenever you want. The beauty of renting is that you can easily move to the next city or state. Homeowners on the other hand, usually have to stay put until they can sell their home.
5. Enjoy Leisure Time
In your 40s you want to enjoy the simple pleasures in life. Being a homeowner can take a lot of time and energy, leaving you with minimal time to enjoy those pleasures. Homeowners have to tackle chores like mowing the lawn, cleaning the gutters and other home maintenance chores and repairs. If you’re a renter, maintenance is done for you and if there’s a problem, you can simply pick up the phone, dial the property manager and they will take care of the problem.
Whatever the reason for putting off a first home purchase, renting longer than you expected isn’t the worst thing that can happen, and actually has its upside. Everyone’s path in life is different and owning a property isn’t for everyone. If you’re in your 40s and are still renting, don’t beat yourself up about it—there’s still plenty to enjoy about renting!