Is there any advantage to renting an Apartment vs buying a Home?
Maybe you are not sure exactly what kind of property to look for. I mean, are there advantages to renting an apartment vs. buying a house? I guess it depends a little bit on who you are. If you are fresh out of high school venturing out on your own, or right out of college, still struggling to pay off debt, you may consider an apartment.
The one advantage to buying a home, let's get that out of the way first, is that it can be used as a tax shelter. Once that house is bought, it is yours. You can fix it up the way that you want. You can add extensions and renovations to your property.
Now, what are the advantages of renting an apartment? First and foremost, renting an apartment is cheaper, usually, then a mortgage on a home. In an apartment, if anything goes wrong with the property, it is the landlord's responsibility to fix or replace it. Whether it is a broken window or a leaky ceiling, those repairs won't come out of your pocket. You will not be responsible for the upkeep or maintenance of the property. That means you are normally not responsible for cutting the grass, trimming the hedges, shoveling the snow, or raking leaves. That responsibility falls upon the landlord.
Just as a side note, a great disadvantage to renting an apartment over buying a home comes down to money. All of the money you put out every month for your apartment, has no end game. You are just dishing out money that won't lead to you eventually owning the property and you can't even carry it on your taxes.
Renting an apartment can also keep down the cost of decorating and furnishing, which can be very suitable for a high school or college graduate looking to get started living independently. There are apartments available that come fully furnished with everything that you will need to get started. You may not even have to buy dishes or pots and pans if you don't want to because absolutely everything is provided for you when you move in.
Deciding whether a home or an apartment is best for you and your budget is totally up to you. Sometimes you have to rent because that is what you can afford at the time. And you may be renting while you figure out where you want to live. You may also be renting a place until a home becomes available for sale that is in your price range. Deciding what is in your price range is very important also. Because you may find a home to buy but you must consider the overhead costs, that you may not have to worry about if you were to rent an apartment. The overhead costs of a home can be more of an expense then you are ready for. You must consider utilities like water, sewer, trash, electric, cable, phone, and possibly oil.
An advantage to settling for an apartment is that your rent may include your water, sewer, and trash leaving you with the expense of electric, cable, and phone. Some apartments may even include a deal on heat for a certain amount of months. Where we lived our cable was included in our rent because the complex had a contract with the cable company. This meant that we had one less bill to worry about when figuring out our budget at the beginning of the month. These types of deals are something to look into if you are interested in renting an apartment. The choice is yours.
Written By: Marquitte Polite, United States
Edited by: Rajesh Bihani ( Find me on Google+ )