Let me guess. You have saved up some money after years of working to buy a plot but you are not sure whether to continue renting and owning a home. Believe me you are not alone.
One question that hits you in your midlife is that of whether you should buy a house or continue renting out. I really can’t blame anyone, data from the Kenya National Bureau of Statistics (KNBS) in 2024 shows that the homeownership rate in Kenya sits at 61%, while this is definately high, it is a dip from an ownership rate of 64% that was recorded in 2013. This indicates that most Kenyans are beginning to embrace renting over buying.
Many people still believe that buying is the better option which is based on societal pressure and the believe that mtu ni “kashamba”. While land as a form of investment is a really great idea there are some reasons why renting could be the best option for you.
So stick with me as I try and convince you otherwise.
7 Advantages of Renting over Buying
1. Easy and cheap access to amenities
Modern rental units nowadays provide you with great access to amenities that would be too expensive if you owned a home. Facilities such as swimming pools and in-house gyms provide access to some of the best shared amenities, which would be very expensive if you were to own them.
With these amenities, you get to experience high-quality living at a low rate. Essentially, getting the best value for your money.
2. Lower maintenance expenses and headaches
Secondly, when renting, you tend to incur low maintenance bills & repair costs. This is because the duty of carrying out this fix is taken up by the landlord. Furthermore, your monthly rent payments may reimburse you for any repairs you make. So, if you prefer the convenience of not having to worry about home repairs, renting could be a suitable option for you.
3. No Real Estate Taxes
Taxes have become a major topic to debate, especially here in Kenya. However, by simply renting, you could avoid this hurdle. The nature of these taxes could essentially be a burden to you in the long run depending on the value of your property or home.
Renting means that you don’t have to pay for taxes such as land rates, rental income tax, and other property taxes.
4. Renting offers more flexibility as to where to live.
The current growth of online jobs and remote work has made location independence a priority for many workers. If you decide to rent, you get to have more flexibility as to where you live as opposed to buying a house. This provides you with more options in terms of where you can live, and you can easily change your location based on preference or any other reason.
Let’s say you receive a job transfer or decide to relocate to a place with a more laid-back atmosphere, such as rural areas. If you had rented, it is simply a matter of packing and leaving. So if you have not yet stabilized in life, then renting could suit you better than buying, which is a huge commitment.
5. Renting gives you the flexibility to downsize.
Sometimes tough times require the toughest decisions to be made. The pandemic, which forced many people to relocate to more affordable areas, is a true testament to this statement. Although this situation is negative, it highlights an advantage for many renters: the ability to downsize to units that better match their current financial circumstances.
This, of course, becomes severely difficult if you own a home. While you are obviously not paying rent, most decent homes have significant running costs. So if you are ever in a financial strain, it becomes next to impossible to downgrade unless you sell.
6. Fixed Rent Amount
Having a fixed rent amount is a huge advantage, especially for budgeting, as it ensures that you get to prioritize the most important bills. This structured way allows you to live comfortably while still addressing other costs.
This is far better than having that huge monthly mortgage that fluctuates depending on interest rates that you have very little control over. This may disrupt some of your budgeted expenses or, even worse, leave you in a financially distressed situation.
7. Renting has lower upfront costs.
While buying a home might be the best long-term investment, house prices are not cheap. Therefore, if you have a tight budget or are not in a position to part with millions, renting might be the best option for you currently.
As time progresses and you build a better financial muscle, then you can begin thinking of buying. And when you think of it, here at Kejafinder we have the best units available.
