Renting is rapidly becoming a popular option for people of all ages, but especially among the younger generation. It’s cheaper than owning a house long term, flexible — which is helpful if you travel for work or don’t like to stay in one place very long — and you can often find beautiful city loft apartments for a quarter of the price of owning a smaller and less luxurious home. For those who have never lived in an apartment and are worried about how homey it can be, apartment living can be quite cozy, even on a limited budget! If you’re just starting out or are thinking of downsizing your home, renting an apartment might be the way to go.
Why Should I Rent Versus Buy?
- Better Standard of Service
- Tailored For Your Needs
When you put a down payment on your house, you’re putting down probably over $50,000. When renting an apartment however, you might put down three months rent and a security deposit — a sum that usually comes out to way less than $50,000, even if you’re looking at city loft apartments or a new luxury apartment! You can use the extra money towards other investments that could prove more lucrative.
Research has also shown that almost 20% of people who bought a home could have saved money by just renting and Harvard University also reported that often, renting makes more sense from a financial standpoint than buying.
Renting can also mean a more fixed sense of income. While mortgage payments may be about the same, maintenance costs, insurance rates, and taxes can vary from year to year. It’s even worse if you’ve opted for an adjustable-rate mortgage — then even your mortgage payment could go up or down, depending on the economy. Additionally, research has also shown that renters save over $500 every month by choosing to rent instead of buy.
Lastly, many times, heat and hot water, or other utilities are often included in leases, especially on a city apartment, which means that you save money on utilities too. As a homeowner, all those responsibilities are yours.
As a homeowner, if something breaks or gets clogged, you have to deal with it. It’s your problem. In a professionally managed apartment, however, you may get on-site maintenance, top tier amenities, and much more responsive customer care. You also won’t have to worry about lawn care, shoveling snow, or raking leaves! All that gets taken care of for you.
If you want to live on your own, city loft apartments could be just the right thing. Buying a whole house for just yourself doesn’t seem to make much sense, but a loft apartment can be personal, private, and cozy for a fraction of the price. Sharing a one bedroom apartment with your partner can be a cost effective way to start out a new phase of your relationship or a great nest for newly married couples, without a huge financial commitment.
In so many different ways, choosing to rent instead of buy can be a very financially smart and advantageous move on your part.