While everyone is looking forward to the new year, hoping that 2021 will be different, anyone involved in Texas real estate needs to be realistic. This goes for property owners, agents, and potential buyers. The real estate industry has suffered in 2020, and some of the changes it has been forced to undergo will be permanent.

Something that became clearer than ever before was that home-owning is not necessarily the best option. Many homeowners have battled just to keep their homes safe from repossession. They have a lot to lose.

Which has led many people to consider paying the reasonable rental most Texan landlords expect rather than buying a home. This may seem like a knee-jerk reaction to an unprecedented crisis, but there is in fact logic to choosing to rent in the current climate.

Here are some of the reasons you might hold off on buying a home.

The deposit

In some ways, renting and buying on a mortgage are similar. After all, you are spending a fixed amount of money on retaining your place of living each month. One of the big financial differences, however, is the deposit. You will spend a fair amount of money putting a downpayment on your home, in addition to transfer fees and the like.

While you may have savings that you intended to use for this very purpose, it might be worthwhile  . We have seen how quickly the world can change. Few people are as financially secure as they once thought. In 2020, many businesses had to shut down and millions of jobs were lost.

The economy will inevitably recover, and new businesses will create new jobs, but people with savings were in the best position to survive the crisis. Buying a home with the majority of your savings might not be a financially wise decision right now.

Dipping property values in Texas

Property values in Texas have dropped during the pandemic, due to a huge decrease in demand. That makes many properties particularly attractive. However, buying property at such an unstable time comes with a cost. You may be getting it at a bargain – but its value could actually continue to drop depending on the course of the next few years.

This is not to say you should wait for better prices which probably won’t come. But the risk that your property will be worth much less when you try to sell it is real.

Few income opportunities

Buying a home is not just about finding a place to live. You can use it as an income generator. Maybe you have space on your property for a cottage, or simply want to list a room on Airbnb for visitors to Texas. It has, in the past, been a stable means of bringing in consistent earnings.

Now, however, it is particularly tough to earn money from renting out your place. Even if you do find a tenant, they will probably agree to a much lower rate than you would like. They may simply not have the type of money you are looking for, considering the economic reality.

Risk

No matter when you purchase a property, you are at risk of major losses in the event of a disaster. Even with insurance, a fire can cause more financial damage than you recuperate in your claim. And while you might have felt comfortable in taking on that risk in the past, the world in 2020 is not so kind.

As a renter in Texas, you can get renters insurance TX. Renters insurance covers your possessions when you are living on someone else’s property. It can cover you for personal liability as well as any damage or loss of possessions. It is much cheaper than insurance on your own home, as you have less materially to lose.

Adaptability

Finally, when you buy a home, you leave yourself with few options when times change drastically. When you are renting and you lose your job, you can make a plan to downsize or move in with someone else. However, when you own a home, you have to somehow sell it before moving on. In a crisis like this, finding buyers in Texas will be particularly tough.

So, if you want to keep your options open to move across the country for a job or to find a new place to live in a pinch, renting beats buying.

Owning a home used to be a sign of stability. But in times like these, it can be a burden. Consider renting instead, even if it is not your dream scenario.