Buy house? Why I would rather stay a tenant

Although all of my friends bought houses during the pandemic, I remained a staunch tenant.

This means that I can move when I want in the future and do not have to reckon with any unpredictable costs.

I also live debt free and am not tied to any credit at a time when everything seems uncertain.

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I didn’t want to buy a house for a long time. While my friends all invested in their first home, I continued to rent. Before the pandemic, it was mainly because I didn’t know where I wanted to settle in the long term. Plus, I just wasn’t ready for so much financial responsibility.

The pandemic only strengthened my decision. I am more satisfied with my rented apartment than ever before. I am not tied to any credits and have not rashly made any purchase decision that I might now regret. For me it is clear: I will rent for a very long time. Here are five reasons why.

1. Flexibility is my top priority

As a tenant, I can decide every year whether I want to extend my rental agreement. Since I work from home, I have been able to take full advantage of this fact in the past. I lived in ten different cities in two years. And since the pandemic, it has also helped me enormously to know that I can leave New York City at any time if I no longer feel comfortable there. As a tenant, it is completely up to me whether and when I move.

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2. I have predictable fixed costs

Of course, as a homeowner, you also have predictable fixed costs. But it seldom stays that way. In addition, there are usually unforeseen charges and reparation costs, the amount of which can vary greatly. As a tenant, I don’t have that. I always know what costs I will have to pay each month. I know what to transfer to my landlord and what my ancillary costs are. I even know how much I tip the employees in my building complex at Christmas time. At a time when everything seems uncertain, this stability in my housing costs has given me a sense of general stability. At least as far as my finances are concerned.

3. I don’t have to fix anything

I spent more time at home than ever during the pandemic. As a result, the devices in my apartment wore out faster than usual. When, after six months, my refrigerator suddenly stopped working, a drain had to be replaced and the air conditioning broke, it didn’t cost me a penny. My landlord took care of everything. As a homeowner, I would have had to pay around 900 euros for the repairs.

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4. I have to save less in advance

As a tenant you have to have a lot less money on the high edge to be able to move in. Apart from a deposit, which was half a month’s rent, I didn’t have to pay anything. If I wanted to buy a house, I would have to save a lot more in advance. I would have ancillary purchase costs, brokerage fees, and down payments. Only then would I be given the key to my new home.

It would take several years for me to save all of this. Not least because other major investments are currently at the top of my list of priorities. For example, I want to invest in a small business and buy a car.

5. I don’t have to worry about debt

Maybe one day I’ll change my mind and buy a house. However, only when I have enough money in my account not to have to take out a loan. Having to pay a loan including taxes and insurance during the pandemic is unthinkable for me.

I know that home loans are also known as what is known as “good debt”. Good debt because it helps build equity and assets over the long term. Even so, I would be afraid to commit myself to such a financial obligation. I lost earnings for a while during the pandemic. This could have compromised my creditworthiness and eventually resulted in the termination of my mortgage.

As a tenant, I have no debts to this extent. That made me feel more secure about my financial situation, especially during the pandemic.

This text was translated from English by Anika Faber. You can find the original here.

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