Perks of Renting Instead of Owning
July 26, 2019
Many people are eager to buy a house after living in an apartment as it is often the next big life step and allows you to start building equity in your home. However, Apartment Guide just released an article stating that Wisconsin is one of the few states in the US where it is more affordable to rent than to own, as home prices have gone up 6.14% this year while rents are down 1.62% statewide. In addition to these market trends, we’ve outlined 6 other reasons we believe renting an apartment is a better decision than owning a house:
1. No Maintenance and Upkeep
One of the best parts of renting an apartment is that you are not responsible for routine maintenance and upkeep like you would be in a house. You don’t need to worry about mowing the lawn, weeding the garden, and shoveling the snow out of your driveway. If you have something going on in your apartment, such as a slow shower drain or the AC doesn’t seem to be working correctly, your landlord is just a quick call away!
2. No Surprise Bills
Another great part of renting an apartment is that there are no surprise costs that can come up while you live there! You’re not responsible for replacing the water heater if it goes out or worrying about saving for a new roof.
3. Low Commitment
Another great part of renting is that it is low commitment. Most leases are a standard 12-month lease, but sometimes shorter-term leases are even an option. If you were to own a house, it is often recommended that you stay in that house for at least 3-5 years in order to break even on your mortgage, and even then, you run the risk of what the housing market will be like when it comes time to sell.
Most homeowners do not have a swimming pool, fitness center, sauna, and cappuccino maker all in the comfort of their home, but many apartments come with these fantastic amenities! These are items that would be very costly to have in your own home, but are often included with your rent!
5. No Down Payment
Most houses require at least a minimum down payment of 3.5% but many recommend having 20% down on your mortgage when you buy your house. This is a very large chunk of change that needs to be saved before you can even consider buying a home, while most apartments just require a security deposit equal to one month’s rent or less.
6. Taxes, Interest, and Insurance
The big plus of owning a home is building equity in your house, but a large portion of your monthly payments are not going towards your actual house payment, they are going towards your monthly interest, property taxes, and homeowner’s insurance. These are huge costs that you don’t need to worry about paying as a renter.