Apartments and Homes: Renting vs. Buying
When it comes to apartment and house hunting, 2018 apartment statistics show renting or buying your own place both come with their own pros and cons. A small family, for example, may prefer to not to buy a house or apartment right away, preferring instead to find a suitable location once their family has reached a size that needs larger space.
Additionally, buying an apartment or your own home requires a bit more than proper finances and a good mortgage rate which is hard to come by if you are a student. One should also consider the expense of property taxes, homeowners association fees, possible upkeep and preservation at the expense of the owner. When the question of renting or buying is viewed through this lens, renting appears to be the more favorable option for many.
Having said that, your financial situation will almost certainly be the determining factor in this scenario. The rest of the factors are also important here though, and should not be ignored. We’ll give you a few helpful tips for deciding whether renting or buying is right for you.
The Upside of Renting
Renting a house or apartment has the advantage of freeing you from the responsibilities of ownership, including maintenance, structural issues or any luxury upgrades to modernize the place. And unless it’s your preference, you usually won’t be required to pay for items like air filters, light bulbs and the like. Renters can look forward to one fixed amount for expenses each month and less likelihood of any emergency bills surprising them. Many apartment communities offer fun incentives like pools or playgrounds to further attract renters.
The Downsides of Renting
Tenants must abide by any guidelines set forth by the property’s owner or in some cases the property manager. These rules can vary widely from pet restrictions to guest stays and more. Because apartments are more compact than houses, you’ll likely have less space for storage. Renters may need to consider getting a storage unit or getting rid of larger pieces that may not be able to fit in the apartment. Very few apartments have controlled rent, meaning that the rates may fluctuate while you are living there, and could go above what you’re able to afford.
The Upside to Purchasing
Both homes and apartments can increase in value over time, so if you’ve purchased one of these you may be able to recoup more than the amount you initially paid. Homeowners typically have better credit scores as credit in good standing is often a requirement for such purchases. If a homeowner has something like a fixed-rate mortgage, he or she can be assured that there won’t be any unexpected fluctuations in payment. Interest rates paid on these properties are also eligible for deductibles during tax season most of the time.
As we mentioned, homes will likely have more storage space, and you’ll be able to put whatever you want there without restrictions, and redecorate the interiors to your liking.
The Downside of Purchasing
Homeowners are responsible for fixing all maintenance issues large and small themselves. They’re also responsible for making timely payments on mortgages, housing association fees, insurance, and property taxes. It can seem overwhelming, but all of this is manageable with a little planning.
Keep in mind that homeowners must make sure their place is up to any city codes and will have to take on the job of selling the place if they want to move, or find a realtor to do it for them.
The Next Move?
Ultimately this important decision is based on what works best for you. Renting provides some flexibility while ownership provides a bit more stability and possible investment opportunities. Whatever you decide, we wish you the best in this endeavor.