Renting in Your 30s and 40s

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For many people, a house is the biggest investments they will make in their lifetime. Some people still find themselves renting in their 30s and 40s. Depending on what you want to do, you may feel FOMO setting in as you watch all of your friends pay off their mortgages. You might think you missed your opportunity to become a homeowner. Don't be so hard on yourself though. There are actually a lot of good reasons to put off buying property.

1. You Have More Time to Build A Better Credit Score
In your 20s, your income was probably entry-level, and making the minimum payments on your credit card balances was your only option. You also haven't had time to pay off a loan in full, unless it was a car, but even that seems unlikely. With little to know credit history, you may have had a lower credit score, and that doesn’t give you any power to get a competitive mortgage interest rate. Fast forward to now, and you've likely paid a few credit cards off and maybe even paid a car off. Those good behaviors contributed to a better credit score, making it easier for you to get a reasonable mortgage rate (unless, of course, mortgage rates are high when you're ready to buy--then it may be a good idea to wait a little longer still).

2. You’ll Have More Time to Save for a Down Payment
When you buy a house, it's best to make a 20% down payment to avoid paying private mortgage insurance. In your 20s, that can be difficult, especially if you student loans and credit card debt. Or maybe you want to travel more when you're young. By the time you reach your 30s though, you've had time to save a healthy down payment, or you can start saving to buy a house in your 40s. 

3. Your Student Loans Might be Paid in Full
It may seem like your student loans will never be paid off. By your 30s or 40s, it's more likely to happen. Less debt means more money for  a mortgage once those student loans are gone.

4. You Can Live Where You Want
Last year you lived in the city, this year lived near the coast, but next year you want to relocate to be closer to family. Being a renter gives you the flexibility to "try on" new parts of the country from year to year to see which one suits you best. As most leases end within six months to a year, it allows you to pick up and leave whenever you want. The beauty of renting is that you can easily move to the next city or state. Homeowners on the other hand, usually have to stay put until they can sell their home.

Similarly, you may be able to afford a much nicer, newer place with more amenities than you would have in a house that may be in your budget. For example, you could get access to a pool without the HOA or the expense of having your own pool.

5. You Don't Have Home Maintenance
In your 40s you want to enjoy the simple pleasures in life, like NOT doing the home maintenance that comes with being a homeowner, which can be not only time-consuming, but also expensive. If you’re a renter, you don't have to do those things and if there’s a problem, you can simply pick up the phone, dial the property manager and they will take care of it.

Whatever the reason for putting off a first home purchase, renting longer than you expected isn’t the worst thing in the world, and in fact, has upsides. Owning a property isn’t for everyone. If you’re in your 40s and are still renting, don’t beat yourself up about it—there’s still plenty to enjoy about renting!

• Renting in Retirement?

  

  Why not? People choose to rent in retirement for a variety of reasons, from no more home maintenance to health reasons. Renters at any age still need renters insurance though. 

  What to Know

• How Much Renters Insurance Do You Need?

  

  Now that you know you need renters insurance, here’s how to figure out how much you need.

  Calculate It!

• Living Small?

  

  Living in an apartment can make entertaining a challenge. Here are some ways you can make the most of a small living space.
  
  

  Make it Work