Why Renting An Apartment Is Preferable Than Investing In A Home

By Erina Array

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The question of to lease from an apartment complex or buy a home may be one of the biggest these days. There are a lot of people who find themselves on both sides of the fence, and there are a number of good arguments towards both. The real answer has many different factors to consider. While you may think that owning a home is a good idea, there are many benefits of renting instead of buying.

To start with, think about what we have realized lately about the economy. Even though it could seem that things are looking up, consider how many individuals have lost their houses, or are being foreclosed upon right now whether or not it is because of losing a job, investing in the wrong business, or using some type of financial service that went under after paying all that money into it. How truly safe are you in your job, and what happens if after you have started paying on a home and you do get fired or laid off? How are you going to keep coming up with the mortgage payments?

There are a lot of different reasons why renting an apartment today is a lot better than getting a home. For one thing, it is cheaper to rent an apartment in the long run. In case you are renting from an apartment community for $700 a month for a three bedroom, that same home is going to cost you any where from $1,000 to $1,500 per month in mortgage, factoring in insurance coverage and taxes. If you actually wish to invest in something, take the difference between this rent and a mortgage payment and invest it in the stock market.

Getting a mortgage for a home is a long and drawn out process. You need to have excellent credit score, a sizable down payment to be able to get a good rate of interest, and jump through a bunch of hoops. When you do finally get into a home, then you are locked into owing somebody a large sum of money, and have to continue paying that for years to come. With renting, as long as you pay your rent, you don't have anything to think about, and when the lease comes up, you have an option whether or not to remain longer, or find someplace better.

Owning a house means that you are fully answerable for everything that happens. When you move in, and the gutter starts backing up, you are the one that has to call someone to come in. If the sewer guy discovers a bunch of roots in your pipes, then you have to pay them to dig up your very own backyard, find the problem and repair it. If you are renting, this isn't your duty. If something breaks down in your condo, like the dishwasher, or oven or some other main equipment, guess what? All you need to do is call the owner and they have to replace it.

With renting, you do not have to stress about yard maintenance. Unless specifically stated in your rental contract that you have to mow your lawn, it is the landlord's job to keep and preserve the grounds. If there is a problem, they have to handle it, not you. Sure you need to maintain your personal areas, but that's it.