Especially when you are just starting out, you will find that renting can be smart. If you are among the many who are seeing all of the friends and family buying houses and “starting life” you may be wondering when it will be your turn to “start life” as well. The misconception that you need to buy a home to start making money has grown out of proportion and has become a common theme in America. Whether it is the whole ideology of being a true independent American or just following in the footsteps of your fathers it still has some major problems with it.
You just live there
If you are a homeowner you don’t get to just live there. You have to up-keep and maintain everything . Meaning that you are not only paying the bills but also all of the repairs and maintenance you can’t do yourself. You can’t just complain till it goes away like most tenants do.
Some apartments offer pools, gyms, or other luxuries that most homeowners will never have. If they do want them they end up dropping thousands of dollars not only to start them up as projects, but also to keep up on maintenance.
This is a big blessing for any apartment owner because they really don’t have to pay any real estate taxes and in some states that is a huge amount of savings.
No major down payments
Yes, sometimes you have to start out with a little cash down as a deposit but you often get that back as a renter in the end of the contract as long as you take care of things. A home owner drops a lot of money as a down payment and the more they put down in the beginning the better. You don’t see that money again.
Unreliable market changes
Sometimes being in the real estate market can be as sketchy as trading stocks and bonds. There is just so much volatility that more and more people are switching to renting and choosing to invest elsewhere. While Real estate used to be a more secure it has become more and more shaky as people see banks handing out loans left and right creating even more volatility. As a renter you know what you are paying and it is a fixed amount which really takes the risk off of your shoulders.
Homeowners pay a lot more insurance and many people don’t realize that there is even a renters insurance. If you are looking for renters insurance, you will find it readily available from your local insurance company or over the internet.
Mobility is a very enticing part of joining the “renters club” because who doesn’t want to be able to leave when they want or just move when they want? It would be easier, especially if the move is a necessity.
apartment image by Wikimedia Commons