Living in an apartment, you are allowing someone else to handle the maintenance, but you are not receiving any equity for the money you spend. Homeowners may feel that there is always something that needs to be fixed. Apartment dwellers may be happy to let someone else take care of the little things that commonly need repairs.
What Are the Advantages to Owning a Home?
- You can change the layout, knock down walls and repurpose rooms.
- You can gain equity and sell for a profit.
- You may be eligible for tax credits.
- You probably have more room than most apartment renters.
- Noisy neighbours are not as close to you.
Rent may change annually, whereas house payments may remain stable, unless you have a variable rate mortgage. Property taxes may also go up.
Owning is advantageous over renting if you are interested in putting your money into something that may eventually pay you back, with interest, says Simple Organized Life.
Some people enjoy having their own piece of land where they can relax in the relative peace and quiet.
What Are the Advantages to Renting an Apartment?
- Someone handles all the maintenance for you.
- There is no grass to cut.
- You don’t have property taxes.
- You can move just by letting your property owner know a month ahead of time.
- You don’t have to sell your house before you can move.
- You can vacation when you like, and not worry about problems.
- You’ll spend a lot less money on insurance.
- Rent is usually cheaper than house payments.
- Renting can be a lot simpler than owning.
The Overall Comparison
For many people, renting may work for a time, but they may eventually want more room for pets or other animals. Perhaps you want a large garden or a larger lawn, or a home with your own aesthetics and lifestyle in mind. Home ownership is more complicated, but there are also rewards not found with renting.
Some people even own more than one home, and rent houses out to others. They have a unique outlook, since they are involved in both types of living arrangements. They agree that it’s nice not to have noisy neighbours close by, since their tenants complain about it once in a while.
If rentals are in a complex, maintenance may be more responsive, since the company that owns the complex probably has people on call. If you live in a privately owned apartment dwelling, it may take longer to have repair work done.
How to Decide
It comes down to what you want at this particular point in your life. You do throw money away when you rent, but you pay for repairs when you own a home, which are handled by your property owner if you rent.
Renting often suits younger people and elderly people. Young people don’t want the hassles of maintenance and lawn mowing, so it makes sense for them to rent. The same applies to the ageing population.
People in the middle years may enjoy home ownership, and after their home is paid off, they can live much less expensively. They can also borrow against the equity in their home if they want to.