5 reasons to keep renting

You have a stable job and a solid nest egg. Time to buy a home, right? Not necessarily.

Although homeownership can offer financial benefits like equity, appreciation and tax deductions, there may still be good reasons to keep renting even when you can afford to buy.

“It’s really just not as cut and dried as the famous ‘throwing money away on rent,’ especially if renting is buying you something you value, such as flexibility or consistency in terms of cost of living,” said Charlie Bolognino, a certified financial planner at Side-by-Side Financial Planning LLC in Plymouth, Minn.

Here are five reasons renting might make sense for you.

You want flexibility

Buying a home could easily tie you to a place for years. You can always sell, of course, but there are associated costs — and you could lose money if you sell too soon or are forced to sell in a down market.

Renting, on the other hand, gives you more freedom to relocate as desired. You can more easily jump at a career opportunity across the country or simply try a different neighborhood on for size.

That level of flexibility can also provide relief if your situation changes.

“When you’re renting, you have a light at the end of the tunnel where, if you’re stretched thinner than you thought you would be, you can pick up and move when your lease is up,” said Kelly Ennis, a certified financial planner and founder of Infinity Financial Strategies LLC in Granby, Conn. “With a house, you have to pay it off or sell it, and hope you get at least as much as you paid or enough to cover your mortgage.”

Maintenance

Homeownership is work. Yardwork. Housework. Maintenance work. All of that can be a drain.

“Owning your own property just takes more time,” said Kenny Kline, an entrepreneur in Brooklyn, N.Y. “Dealing with maintenance, the co-op board, the occasional construction project all takes more time and stress than you realize.”

You crave amenities

Renting can give you access to perks like an on-site gym or a rooftop swimming pool. But some buildings go well beyond the basics, offering next-level amenities, said Sophie Morrison, a real estate broker in Chicago.

“We’re seeing things like bowling alleys, boxing rings, golf simulators, massage rooms, salt saunas, basketball courts, movie theaters, recording studios and wine cellars,” Morrison said, noting that many of her clients can afford to buy but choose to rent in part because of the amenities new buildings offer. “These luxuries are significantly more common in rental buildings than condos.”

Financial predictability

Average rents in a city may fluctuate, but once you sign a lease, your rent is fixed for the duration of the lease, if not beyond. The same cannot always be said for homeownership.

Yes, your mortgage payments remain stable, but maintenance costs can be unpredictable. Property taxes can also fluctuate, and not just because your home value increases. Cities can impose higher property tax rates, and federal laws can change how much you can deduct from your taxes.

Buying a home comes with a lot more upfront costs, too. First, there’s the down payment, then there’s closing costs.

All of that can leave you feeling cash poor. So it’s not surprising that 34 percent of first-time U.S. homebuyers said they no longer felt financially secure after purchasing their current home, according to a survey conducted this year by The Harris Poll for NerdWallet.

Have a good thing going

Another great reason to keep renting? You love where you live.

If you have a great house or apartment with a reliable landlord and below-market rent, follow the adage: “If it ain’t broke, don’t fix it.”