Renting Vs Mortgage? Top 8 Reasons Why is Renting Better Than Mortgage in the Netherlands

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One of the significant life goals people tend to achieve is getting a great job, buying land and even buying a house. Buying a home is typically one of the indicators that you’ve “made it!” However, this may not be the case for everyone.

Sometimes the cost of buying may be too much.

Here are our top 8 reasons why is renting better than the mortgage?

Reasons Why is Renting Better Than Mortgage?

No Maintenance Costs or Repair Bills

While talking about Renting Vs Mortgage, There’s doubt about it: Owning the place you live is expensive. And it is not always small expenses that add up, either. 

Things like a new roof and gutters cost Business Insider contributor Kate Dore about $7,800 for her home in Nashville, she writes. And something as seemingly simple as a crack in her living room ceiling cost her about $3,900. 

When you buy a house, condo, or apartment, you’ll also need to be saving for repairs, and that’s why is renting better than the mortgage. With renting, you’re not responsible for upkeep and maintenance, which is the best part of why renting is better than the mortgage.

Get repaid for home improvements

While some landlords are pretty strict about making any changes to the space, others are open to positive changes that will appeal to other renters, such as refinished floors, fresh neutral paint, new light fixtures or faucets, and might even reimburse you for materials and labour. You won’t know unless you ask, make sure you do ask before making a change, or you could lose your deposit when you move out!

Access to Amenities

Another financial benefit of renting better than a mortgage in the Netherlands is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness centre come standard at many midscale to upscale apartment complexes with no additional charge to tenants.

If homeowners wanted to have access to these amenities, they would likely have to spend thousands of dollars for installation and maintenance. Condo owners aren’t exempt from these costs either.

No Real Estate Taxes

One of the significant benefits of renting versus owning is that renters pay property taxes. Real estate taxes can be a hefty burden for homeowners and vary by county. In some areas, the costs associated with property taxes can amount to thousands of dollars each year.

Although property tax calculations can be complex, they are determined based on the estimated property value of the house and the amount of land on which it’s built. With new constructions getting larger and larger, property taxes can be a significant financial burden to homeowners.

Upsize more easily when your family grows

Buying a small starter home may seem like a good idea until a child (or two or more) comes along and you realize you need more space. If you rent, moving to a more critical place is a relatively simple endeavour.

If you own your home and want to sell your old house and buy a new one simultaneously, things get more complicated (and more expensive), especially if you end up carrying two mortgages at once. And when you know why is renting better than a mortgage?

Why is Renting Better Than Mortgage
Move to your house now.

Less debt

Why is renting better than a mortgage is? You’re going to have to pay the total price. And home prices love to fluctuate. This usually means a loan from a bank. Then you’ll pay it off for the following stated amount of time.

Renting is not set up in the same way. Instead of having a sizeable down payment and the rest paid off as debt over the years plus the interest rates, renting is always the same rate until the end of a lease which is considerably shorter than a mortgage.

You’ll pay every month, but you probably won’t need a loan to rent a place.

Much lower utility costs

A huge selling point for some rental properties is utilities included” When a rental property will pay for one or more of your utilities, that’s an entire bill you now get to keep.

Also, apartments are typically smaller than houses, so it costs much less to heat, cool, or light up a rental thoroughly. This means saving on utilities each month. Again a good reason why renting is better than the mortgage.

No down payment required

The last reason why renting is better than a mortgage in the Netherlands is that there is no down payment. Even modestly priced cities will take median income earners over ten years to save for a 20% down payment, reports Business IInsider’sLibertina Brandt.

According to data from Unison, it will take the typical earner about 12 years to save the down payment for a house in Columbus, Ohio. And for those looking to live in even more expensive cities, those time frames get even longer — in San Francisco, it will take the typical earner about 40 years to save.

While renters might need to save a security deposit, it will be considerably less than a down payment and closing costs.

Owning a home can be beneficial for homeowners over the long run due to the amount of equity they acquire in their home. Renters have nothing tangible to show for years of rental payments.

However, renting might be a better option for those who want to avoid the hassles associated with homeownership, the costs of upkeep, and property taxes. They know why renting is better than a mortgage.

Checkout | Apartment and Rooms for Rent in the Netherlands – Easy to Find Within 1 Day

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