A lifelong objective that numerous people strive to attain is homeownership. While numerous people own homes in today’s society, this was not always the case. Historically, families either had to construct their homes or rent.
While both buying and renting have their sets of financial benefits, renting seems to have an edge especially during poor economy. While most individuals consider renting as a stepping-stone to homeownership, renting has various benefits that could make it a better option than purchasing.
Whether you’re a first time renter or haven’t rented for a while, check out why you should rent an apartment.
Renting offers a great degree of flexibility. You could simply pack and leave following the expiry of your lease, which could be yearly or monthly, whichever suits your lifestyle. Numerous individuals struggle to cope in today’s economy.
By renting, you have the choice to downgrade into an affordable living space. On the other hand, homeowners find it more difficult to break away from a costly house due to the charges involved in selling and buying a home. The capacity to relocate could be a blessing especially with scarce job opportunities.
Reduced Ownership Expenses
Renting saves you money in different ways. Houses usually cost more to cool, heat, and have lawns that you have to mow or pay someone to do so. Renters don’t have to worry about repair bills or maintenance costs.
As a renter, your landlord handles all repair and maintenance costs. If an appliance stops functioning or your roof starts leaking, you don’t have any financial responsibility to fix these things. On the other hand, homeowners are responsible for their repair, renovation, and maintenance costs; these costs could be quite extensive.
Another monetary benefit to renting is accessing amenities that would otherwise be costly. Luxuries for instance a fitness center or in-ground pool are standard amenities at numerous mid to upscale apartment complexes with no extra charge to tenants.
If a homeowner wishes to match the same amenities, he or she can expect to pay a considerable amount in maintenance and installation costs.
Purchasing a home usually requires a 20% down payment. Renters obtain a better monetary deal in this area. You don’t have to save a high down payment to relocate into a rental property. While the precise amount you require to move in differs on a case-by-case basis, the total amount is considerably lower than you would require purchasing a house.
Homeowners face great risks especially if their finances crumble. When they are incapable of paying the mortgage, the lender typically has high leverage; the invested equity and house could be at risk. This does not imply that a tenant who can’t pay rent doesn’t face any consequences. However, the monetary devastation that comes with losing a home is considerably greater than apartment eviction.
Reduced Insurance Costs
While homeowners must sustain a homeowner’s indemnity policy, it would be prudent for renters to invest in a renter’s indemnity policy. Fortunately, renter’s insurance is considerably cheaper and covers a lot. On average, renter’s insurance costs a mere $12 monthly. Meanwhile, the average homeowner’s policy ranges between $25 and $80 monthly.
Renters usually pay a fixed amount until the expiry of their lease agreement. While landlords can increase the rent upon notice, you can budget more effectively because you recognize the amount you’re supposed to pay. Meanwhile, mortgages and property tax could fluctuate.
The decision whether to buy or rent is a personal one. Before making a speedy move, evaluate the details and make the appropriate decision for you and your family.
For more benefits of renting, contact Apartment Agents or provide other advantages.
Image: Renting an Apartment