Owning a home is a lifetime goal of many people around the globe. However, apartment rentals have their own set of advantages. We have to understand the fact that homeownership isn’t for everyone, and given the current global situation, the costs of homeownership are currently soaring.
If we look at how things work globally, we see that people are usually left with two options – either they live in their own homes or go for rental apartments. The choice depends on one’s living expenses and immediate circumstances.
Unlike homeowners, renters can save money as they won’t have to deal with repair and maintenance costs, property taxes, and so on. Let us have a look at three ways renting an apartment or home can prove beneficial for you. After going through the list, you will be in a better position to understand whether renting an apartment is a good choice for you or not.
No Maintenance Expenses
If you want to save some money on the side, you can opt for renting a home as one of the essential benefits of the rental home includes minimum to no repair bills and maintenance costs. You have to look at how things work with the landlord or landlady.
Usually, the landlords are responsible for maintenance and repair costs, including home improvements. Suppose your roof starts to leak; all you need to do is to call your landlords and let them handle the matter by asking them to fix the issues.
On the other hand, as a homeowner, you will be responsible for everything from scratch. Depending on what type of repair and maintenance issue you are facing, it can take a serious toll on your bank account too.
No Real Estate Taxes
Another essential benefit of renting a home is that you won’t have to pay any real estate taxes as a renter. For homeowners, real estate taxes are nothing less than an enormous burden on their finances.
Depending on the area where homeowners reside, the costs of real estate taxes can reach thousands of dollars each year. By renting homes, you can save on loads of financial responsibilities while having the luxury of living in the area of your choice.
Another benefit that renters have over homeowners is the flexibility of living wherever they (renters) want without getting bound to a certain area or region. If, as a renter, you don’t like your neighborhood, or you have to move to another place because of your job obligations, you can do so without having second thoughts about it.
Homeowners, on the other hand, get bound and restricted to a certain area. On the brighter side, renters find no difficulty in residing in expensive areas, such as New York. The rents of the apartments might be high; however, when compared to home buyers, the monthly rents are more affordable for rent payers.
Zero Down Payment
When it comes to the down payment, renters have a better deal than home buyers. Typically, renters have the obligation of paying a certain amount for a security deposit, which equals one month’s rent.
However, this security deposit is returned to the renters when they decide to leave the apartment/ house and move out. The only condition is that the renters don’t cause any damage to the rental apartment or property.
On the other hand, purchasing a home comes with a mortgage and a certain amount set aside for the down payment, typically 20% of the property’s total value. The amount needed for the down payment is much larger than the security deposit of apartment renters, which puts them at a greater advantage.