December 22, 2015

Rent or Buy Your Apartment: Know Your Best Option!

There will always be a debate of which is better: rent an apartment, or buy. When a person has just finished university, they'll often want to get out into the world and experience everything that life has to offer. And most people think that buying a house as soon as possible is the smartest decision.
After all, a home is the biggest investment most people ever make.

There was a time when it made perfect sense to buy an apartment or home as soon as possible. But recent market conditions have caused a sharp change in the way that people live. More people are renting now than just 10 years ago. There are times when buying makes the most economic sense, and times when renting is the most economically-sound choice.

Let’s take a look at the many reasons why it's good to rent and buy respectively.

Why It’s Good to Rent

Renting may seem like you're throwing your money away, but there some good reasons to rent. Here are some of the many benefits you’ll experience as a renter:

You’ll save money because you don’t need to worry about maintenance.
Property managers take care of all issues outside and inside of the home.
Total monthly expenditures are normally lower.
Apartments are normally closer to city centers and offer better locations.
You don’t need to worry about the property when you go on vacation.
You can move once the lease is up if you don't like the location
It’s a great starting place if you don’t know the area and are interested in living there.

These are just a few of the reasons why it's good to rent. You’ll also be to save more money for a down payment on your home while renting if you choose an apartment that's affordable.

Why It's Good to Buy an Apartment or Home

There are definitely benefits to owning your own home or apartment. These benefits include:

You’ll be building equity in the home and will eventually own it after the mortgage has been satisfied.
You’ll experience more tax incentives and breaks as a homeowner.
You have the opportunity to rent the home and earn rental income if you wish.
You have more control over the home’s interior and exterior design and look.
You never have to worry about landlords raising your prices or evicting you from the home.

The only reason that owning a home is bad is that you’ll be responsible for more financial mishaps. If the home needs a new roof or something breaks inside of the apartment, you’ll be the one who is responsible for all of the payments. When you have a landlord that owns the property, they must remedy the situation as part of your lease agreement. This means that you will not have maintenance expenditures that are not within your budget.

Every person is different, and the right time to buy or rent will depend your own situation and preference. If you want the utmost in freedom, it may be smarter to rent and save your money to buy a home.