Should You Rent Or Purchase Your Apartment?

We all dream of owning a house; however, it is a huge investment, so we have to think critically and weigh down all the factors involved. Deciding between buying or renting an apartment can be a tough cookie for a homeowner. Quicken Loans states that both paths entirely depend on your finances, plans, and your overall personal situation. Although owning a house comes with its benefits, the process is hectic, from mortgage applications, fees, and taxes and even involving a lawyer at times.

This, however, doesn't mean that renting is any better than purchasing, as it also requires you to be financially conscious of the constantly rising rents and maintenance. Perhaps you are engaged in a task with a limited duration, have just kick-started your career, or have uncertainty about your growing family. If you are wondering which is the smarter choice between buying and renting, the guide below will help you figure out what to opt for and, in turn, make an informed decision.

Your decision to rent an apartment comes with many perks. You have the freedom to move anywhere you wish once your lease expires or even decide to break the contract. According to Mortgage Calculator, you will pay less initial fees and enjoy low insurance costs as a renter. Since the monthly payment is usually not high, you can channel the money you would pay on mortgages and down payments to a savings account. Finally, renting an apartment typically means the property owner is solely responsible for the maintenances. Therefore, you will rest easy anytime you have a plumbing problem, or your roof has some leaking.

Renting an apartment on a set rent amount will allow you to budget for other bills freely. You won't worry about hiked taxes or finances to spend on repair and replacement items. You will also enjoy the (often) available facilities in the community like the gym, pools, playgrounds, and other amenities you would otherwise not find in purchased apartments.

Although you'll enjoy all the benefits mentioned above while renting, you must also consider the cons of your choice. Since you are not the apartment owner, you must agree with the proprietor's terms and conditions. Apartments.com explains that you have to tolerate rules such as no pets and the number of visitors to bring to your apartment. Moreover, parking and storage space can be a deal-breaker in such cases. You might bring many friends and family over only for them to lack spaces to park their cars. Sometimes this living situation will force you to pay for a storage unit somewhere else.

As much as you would want to personalize the space in your rented apartment, you won't afford to. Limitations to changing the colors on walls or kitchen design will leave you only with the option of moving around the furniture. Rates on rents also change over time and it will force you to pay extra money when this happens. Finally, the proximity of rented apartments will deprive the privacy you most desire since, in some cases, you can hear the noise from the other room.

The good thing about buying an apartment is that you can make a huge profit when you decide to sell it. The property's value also increases as time goes by, making it a valuable investment. Quicken Loans confirms that sometimes the cost of renting can be higher than buying, making it a capital gain. Having good credit makes the experience even better.

Since you have to plan for down payment finances, it forces you to save some money before you even think of purchasing. Timely payment of your loan mortgages maximizes your credit ratings, and mortgage rates remain set the whole term. Who doesn't want to enjoy tax benefits? Buying an apartment allows you to experience the advantages that come with tax deductions.

The best part about owning an apartment is the ability to redecorate and design it as you want. You can change whatever you don't like, from kitchen cabinets and floors to walls and even the sinks. Buying the place also negates the rules and restrictions of renting, like pets and children.

Keep in mind that you might also face some drawbacks despite fulfilling your dream of purchasing a living space. While the greatest challenge is dealing with mortgage payments, insurance, and taxes, you will encounter other vicissitudes. For example, according to Apartments.com, you must keep up with timely maintenance and repairs to ensure everything works well.

You have even more work on your hand if the place is large. You will have to dedicate your time and effort to the responsibility of selling your apartment if you decide to, not to forget that the value of your home might decrease or increase over time. Moreover, since it is your home, it restricts your movements, and you can't up and leave for another town.

Naturally, apartments have smaller spaces than homes. So buying one is ideal for smaller families and homeowners who enjoy having a few people around them. However, with the limited parking lots, owning one can inconvenience you if you have more than a car.

Ownership of an apartment is appealing. First, however, you have to consider whether or not you can keep with the taxes, mortgages, and responsibilities it comes with it. It all comes down to your personal preferences, goals, and financial ability. First, think of the source of the money you will need. Rent Own Sell recommends that you go for the choice that suits your needs and has the best comforts. After that, the choice is up to you.

Are you ready to settle in one place, or do you still enjoy your movement freedom? Weigh the closing costs of the apartment and estimate the maintenance expenses and monthly rents. As mentioned before, sometimes renting can be more costly than buying, but these differences will help you choose either one of the two choices. Remember that what works for some people might not work for you. So listen to your instincts and desires, not what others say.