Why Renting an Apartment is Not a Waste of Money
Culture tells us that owning a home is an ideal investment and that renting is nothing but a waste of money. Buying your own home can be a good investment especially if you plan on selling it in the long run. It can give you a sense of stability, pride, and belongingness.
But on the flip side, owning a house has its downsides, too. There is no guarantee that your home will appreciate it. Aside from that, there are various fees that you need to be prepared for when you buy a house, from real estate taxes to repairs and upkeep fees. As ideal as it may seem, homeownership is not for everyone.
Renting can be a smart choice, too.
If you don’t plan on staying in a place for too long, renting is a better option for you. Renting can provide flexibility especially if your lifestyle or career requires you to relocate from time to time. Aside from that, renting can also save you from spending money on repairs, paying for taxes, insurance, and maintenance.
In renting, there is also no down payment required. Aside from these, you will also save yourself from paying the homeowner’s association fees which can be pretty high if you decide to buy a house in an expensive subdivision. Owning a home is always more expensive than what we usually think.
Renting also allows you to stick to predictable expenses
because of the fixed monthly payment system. Renting an apartment can also give you access to amenities. A research article from The Journal of Real Estate Research published in 2014 determined how amenities, services, and external factors affect the rent of apartments.
According to the study, factors such as covered parking, modern kitchen, and occupancy restrictions such as no pets or no children allowed have impacts on rent. Meanwhile, external factors like traffic congestion and access to public transportation are also important determinants of rent. For instance, a high degree of congestion has a negative effect on rent whereas closer proximity to public transportation can increase rent. We have to take these factors in mind when determining where to rent.
Apartments for rent with utilities included are also worth considering if you believe that renting is a better match for you. There are several upsides to this, too. For instance, you wouldn’t need to pay the utility bills anymore. As a result, you would save yourself from all the paperwork that is needed when you apply for the utility companies.
It can also save you money from activation and connection fees from utility companies, therefore allowing you to instantly use all the basic utilities as well. It is very convenient especially if you are a busy person as it saves you from tracking your due dates.
To sum everything up, we have to acknowledge that homeownership is not always the ideal way to go. We have to abolish the previous mindset we have against renting an apartment and renting in general. This mindset is nothing but a myth that can sometimes lead to bad financial decisions.