5 Key Signs You Should Consider Selling Your Home and Renting Again
Written by
Heather Altamirano
Edited by
Nicholas Morine
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Owning a home is often seen as a wise investment because it builds equity and improves financial health in the long run. Additionally, the potential for appreciation in home values over time can make homeownership a sound financial decision. However, homeownership’s high costs and extensive responsibilities can sometimes lead to buyer’s remorse.
According to a recent survey from Real Estate Witch, 67% of people regret buying their home, and 28% have thought about renting again. Here’s a look at the disadvantages of home-owning and why you might consider selling your home to rent again.
Costly Annual Expenses May Be Too Much
Owning a home means more than paying the mortgage every month. There are many additional costs, such as maintenance, improvements, utilities, property taxes, and insurance that some don’t consider when calculating their budgets. These costs add up.
“In addition to their mortgage, the average homeowner spends $17,958 each year on expenses,” the survey outlined. “That total is 78% higher than what the typical homeowner expects to pay each year ($10,094).”
According to Real Estate Witch, unhappy homeowners are shocked by the additional costs, which include the following:
- $5,362 on utilities.
- $4,392 on maintenance.
- $3,784 on renovations.
- $2,904 on property taxes.
- $1,516 on homeowners insurance.
Selling your home to rent would eliminate (or at least reduce, in the case of utilities) these pricey expenses.
Homeownership Can Drive Up Debt
Owning a home means you’re responsible for the maintenance in addition to the utilities, insurance, and taxes. Some underestimate the cost and rack up debt, trying to keep up with the bills.
“About 69% have taken risks or made personal sacrifices to afford additional homeownership expenses,” the survey suggested. “About 20% of homeowners say they took on more debt to afford the cost of homeownership.”
According to the survey, owners have taken out personal loans to cover the mounting costs of owning a home, dipped into their retirement, and paid with their credit cards. As a renter, you’re only responsible for the monthly rent and utilities — the homeowner must cover the additional costs.
Your Home Is in an Undesirable Location
As a renter, there’s more flexibility in where you can live. Sure, you want to be close to work, family, and your kid’s school, but renting is the better option if you plan to leave the area in less than five years. “Anything shorter than that may make it a less optimal investment,” U.S. News & World Report indicated. Plus, an undesirable location is also why 15% of homeowners would prefer to rent, per the survey.
Homeownership Is Stressful
Taking care of a home is an ongoing full-time commitment, which can cause high stress when dealing with major issues such as plumbing problems, termites, a leaky roof, etc. “Additionally, 43% say the cost of homeownership causes them stress,” the Real Estate Witch data stated. As a renter, the financial responsibility for the problems is not yours.
Time Commitment a Part of Owning a Home
Whether dealing with a minor repair, improving the home’s aesthetic, or conducting basic maintenance, homeowners spend a great deal of time taking care of their house, on top of their work and family obligations.
“On average, homeowners say they spend 11.3 hours each week on home repairs, maintenance, and improvements — adding up to 588 hours per year, or 24.5 days,” according to the survey. “That means every 15 years, the typical homeowner loses a year of their life (365 days) to home upkeep and improvements.”
As a renter, your time won’t be consumed with home improvements or repairs, so enjoy!
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