Renting in Utah: Why you don’t need a mortgage just yet
Discussed in This Article
- Before making the deep dive into home ownership, build up your savings while renting.
- More flexibility
- Quality housing options
- Save more, pay less
- No long-term debt
- Build your credit
Before making the deep dive into home ownership, build up your savings while renting.
The American dream is to own a home, right? Get married, buy a house, live happily ever after. But with housing prices in the hundreds of thousands of dollars, actually affording that dream may feel out of reach. If you can’t swing a house right now, that may not be a bad thing. In fact, it may be more beneficial to consider homes for rent in Utah.
Your first home doesn't need to be your first mortgage.
More flexibility
Your grandparents may have been eager to settle down, but we tend to be a bit more nomadic today. That’s easier to do when you aren’t tied to a mortgage. When you buy a home, you’re committed to a 15- to 30-year payment. When you rent, you’ll likely have a moderate contract — six months to a year. That flexibility may work better with your current lifestyle.
Eventually you may want to live in the suburbs, but right now you have the freedom to try out different neighborhoods. For instance, perhaps you’d like to live downtown for a year. Apartments for rent in Salt Lake City, Utah, could put you closer to nightlife, shopping and cultural events.
Or maybe you’ll be changing jobs soon and need a temporary arrangement. Selling a home can take months. Renting gives you the option of moving within a few weeks.
Find apartments for rent on KSL Homes
Renting means you have the freedom to move around.
Quality housing options
At one time, your options may have been less than desirable: a dark basement apartment or a rundown building. Today, not all rentals are equivalent to subpar college housing. There are hundreds of much posher places available. And in many Utah cities, it’s actually cheaper to rent than to buy.
You can choose from condominiums or homes for rent in Utah, or opt for apartment living, from studio to multi-bedroom units. Rentals in large buildings may have additional amenities, as well, such as a gym, a swimming pool or a rooftop patio.
Apartment and condo rentals may have amenities such as a swimming pool or exercise room.
Save more, pay less
Maybe your grandparents could afford a small house when they were just starting out. But chances are, you’ll need to build up your savings account for a while — another reason to consider houses for rent in Salt Lake City, Utah.
Some people worry that making rent payments is tantamount to throwing away money they could be investing in a house. On the contrary, your rent is still providing a place to live. And because you’re adding to your savings, you may be able to buy a nicer home in the near future than the kind you could afford right now.
Home ownership is more than a house payment. You'll also be responsible for repairs and property taxes.
Owning a home will include a mortgage payment, which may be similar to rent. But you’ll also have maintenance costs, property taxes and homeowner’s insurance, which can add up quickly. And while you’ll likely pay a deposit when you rent, it’s often refundable and certainly less than the down payment on a house.
Renting gives you the chance to pay a bit less and save a little more. Another consideration: Your take-home pay may increase during those rental years, giving you another chance to own a better house or move to a more desirable neighborhood.
No long-term debt
“Mortgage” comes from a French word meaning death pledge. As in, you pay until you die. While a bit of an exaggeration, it’s true that it typically takes decades to pay off your house. The idea of a never-ending monthly payment can be a bit daunting. Just buying the house in the first place takes a lot of cash, from the down payment to the closing costs.
If you’re not ready for that kind of commitment, renting is a more flexible solution. For now, if your rent payment is too high, you can move. This can be particularly helpful if you lose a job unexpectedly, for example.
Live in a rental while you build up your savings account.
Build your credit
Renting for a few years before buying is also a sure way to build your credit score. And the better your numbers, the better interest rate you’ll qualify for when you finally get that mortgage. For each on-time rental payment, you’ll be helping yourself. It’s kinda like putting a little extra into your house savings account.
Regardless of how and when your parents or friends purchased a house, there’s no actual deadline. For now, renting can be a great way to build your savings and your credit score so you can comfortably afford a home. Not only that, it also gives you flexibility, something you may especially prefer when you’re just starting out.
