I can afford to save 20% for a house, but I would rather continue to rent


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  • All of my friends have bought a house recently, but I am still renting, even though I can afford to buy it.
  • I don’t know where I want to live in the end, and I like being able to move around for different conveniences.
  • Also, I don’t want to pay property tax or home insurance right now.
  • Read more stories from Personal Finance Insider.

Over the past few years all of my friends have said goodbye to renting and have become homeowners for the first time. It happened quickly. Some of them got tired of paying rent so expensive that they found a house in their price range and bought it on the spot. Others grew tired of living in such a small space during the pandemic that they left New York City and bought housing elsewhere. This made me the odd one out in our group of friends, as I am now one of the last people I know to still be a renter.

When I look at my financial portfolio, I see that I can totally afford a down payment on a house, which is often around 20% of the price of the house. Yet while it’s something I can afford financially, it’s not something I want to do now. While it doesn’t make sense to any of my friends, there are five reasons why I would rather keep renting than buying a house.

1. I don’t know where I want to live

I have lived in New York for almost 10 years and want to move elsewhere. I’m even tempted to try new cities for a few months at a time. For this reason, buying a house doesn’t make sense to me right now.

Even though I knew I wanted to live in a certain city, I haven’t come to a point in my life where I feel like I could commit to staying there for more than a few years, which could thwart a big advantage of owning a house, who is able to sell this property for more money down the road.

2. I don’t want to pay property taxes

While I can afford a down payment on a home, I’m not quite sure I want to budget and save for the annual property taxes associated with owning a home.

When you rent, you don’t have to pay property taxes. But when you buy, you have to pay thousands of dollars a year in property taxes. The amount is based on many different factors, including the estimated home value of the house and land, and where you live.

3. I like being able to move around for different amenities

One thing I love about renting is the ability to have flexibility when it comes to wanting more or less space, changing locations, and even being able to hang an apartment in a brand new building when it opens. Plus, it’s fun to look each year for new buildings to live in that offer amenities that are included in the rental price.

For example, one year my husband and I decided to rent a smaller studio to live in and use the extra money for coworking space. Another year we moved to a new, larger T2 because we wanted the amenities. Next year we could move to a T3 in a brand new building which will open in a prime location offering a discount on rent.

You cannot do these things when you own and live in your home.

4. Home insurance can get expensive

Another cost of owning a home is home insurance. Although we pay renters insurance, which covers valuables and furniture inside the apartment, it is only around $ 150 per year. Getting home insurance is more expensive because it covers not only the contents inside, but repairs to your home as well, and can cost thousands of dollars a year.

5. I want to invest my money elsewhere

While I can afford a down payment on a house, I can’t wait to use that money for other investments instead. I want to use some of this money to invest in a promising business I’m starting, use another portion to diversify my investment portfolio in the market, and put the rest in a high yield savings account to generate passive income while I decide what to do with the money.

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About Johnnie Gross

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