10 Reasons Newlyweds Should Rent Instead of Buy a Home

Being a newlywed is one of the most fun and exciting times in anyone's life. Of course, that doesn't mean being a young married couple is a walk in the park. Married life brings new stresses to the table, and housing is at the top of the list. While the American dream used to include buying a house with a white picket fence, that dream has changed in recent years, and maybe that change is for the best. Here are 10 reasons why newlyweds should rent instead of buy a home.

1. You need to save money

   Just because you're combining two incomes doesn't mean you can scale back on saving. If anything, newlyweds should be saving as much as possible, especially if they're thinking of expanding their family in the future. The money you would have used on a down payment can stay right where it is and continue to grow, or be put toward another big investment you need to make.

2. You may move away

   There's always the chance that you or your spouse might be relocated for work and you'll be forced to pick up and move. If you own a home, moving becomes a hundred times more complicated. You'll have to put your house on the market and hope that it sells at your asking price. This could take weeks, months, and up to a year to finalize a sale. The last thing a newlywed couple needs is to make payments on a home they don't even live in.

3. There's no rush

   A lot of newlyweds think they have to buy a home to make their marriage feel more complete. Renting doesn't mean your marriage isn't complete or is any less on track than any other couple. Even if buying a house is your goal, it’s important to make the right decisions and to be financially comfortable before buying a home. This can take time, and there’s no need to rush.

4. Unnecessary stress

   Let's face it — new marriages aren't all hugs and kisses. It's tough, and the last thing stressed-out newlyweds need to think about is finding the house of their dreams. House hunting before the wedding is not much easier. The process of searching for and buying a house can cause unnecessary stress that newlyweds just don't need this early on in their marriage.

5. There are so many factors to consider

   Buying a house is a huge investment that takes a great deal of research and consideration. In addition to the financial aspects, home buyers also have to consider the property value of the home, the location, the schools, crime, and other factors that will affect your life now and in 10-plus years. Before rushing into a complex decision like this, take a deep breath and start thinking carefully.

6. It's less risky

   Buying a house can be risky, especially if you and your spouse's finances or job security are the least bit shaky. According to a report by Forbes.com, 1/5 of mortgage holders are over their heads because they owe more than their properties are worth. This is a risk any homeowner takes during a hurting housing market, but it's not one a newly married couple wants to add to their list of challenges. Unless you can put down the usual 20% on a house, you may want to rethink buying a house now.

7. You're responsible for all repairs

   Homeownership comes with a great deal of responsibility, including keeping up with all maintenance issues. No longer can you just pick up the phone and put in a quick maintenance request with your landlord. It's up to you and your spouse to fix a pipe when it bursts or call a plumber when the sink overflows. These repairs can be very costly and quite a nuisance if they continue to break or need repair.

8. It's cheaper

   Renting is generally cheaper than buying a home. Of course, this depends on where you live and what kind of amenities you require. Newlyweds don't need as much space as a family of four, for example. When you're willing to give up a sprawling backyard, granite countertops, and a three-car garage, you can rent for cheaper than buying a house.

9. You can escape the hidden costs of homeownership

   Homeownership comes with pesky fees and hidden costs that renters don't have to worry about. Most homeowners have to pay property taxes and, depending on your neighborhood, you might have to pay Home Owners Association fees to cover the maintenance and amenities offered in your area. Insuring a house is another costly venture, especially if the house is older and is prone to problems. If you decide to get renter's insurance, which you should, it is far cheaper than homeowners' insurance because you're only covering your belongings and not the dwelling itself.

10. You have better access to the city and urban amenities

    When you rent, you can live in or get closer to the city and enjoy urban amenities more often than if you own a house in the suburbs. Newlyweds who rent in the city can easily enjoy museums, shopping, sporting events, and other exciting attractions.

Taken From Renter's Insurance