Within the United States, there is a hidden discourse inside of every home. The question of whether to rent or buy a home is an ever-present one as more and more students, employees, and couples decide what kind of investment to make for their future. As many of 35% of American adults rent a loft, apartment, house, or condo. Here are some reasons why renting may be the smarter financial investment.
Buying a Home
Many couples settle on buying a home before starting their family, but today it is possible that financial hardships from buying that home might even tear the couple apart. It is important to know that for the first five years of owning a home, homeowners are simply giving money to the bank as nearly a third of buyers will move within five years before they build any equity. While a non-adjustable rate mortgage payment will remain constant, a homeowner cannot determine the rising costs of maintenance, insurance, and property taxes; all of these can increase significantly year by year. Despite all the hassle, most home owners receive no annual tax benefits to owning their home.
Renting an Apartment
Apartment rental comes with many of the same benefits as owning a home without hassles. Apartment living means not having to mow the lawn or worry about maintenance since most complexes have a 24/7 maintenance employee. Professionally managed new luxury apartments are becoming one of the most popular kinds of rental properties; these new luxury apartments have first-class amenities, on-site maintenance, and a plethora of added features devoted to customer care. On average, renters save around $560 per month just by choosing to rent an apartment over buying a house. For college students and others on a budget, renting an apartment is the best way to accumulate money to invest in a down payment or other investment some day. So depending on your lifestyle a rental apartment might be your ideal home.
Renting allows you to use your ?down payment money? for other investments, which provide a higher return than real estate, even in a booming housing market.