For many, renting is a cheaper alternative to owning a home, particularly in certain areas of the country.
To rent or to own? This is the question! For many, renting is a cheaper alternative to owning a home, particularly in certain areas of the country.
Get the lowdown on reasons why renting might be the affordable housing choice for you.
Move-in expenses
One of the ways that rental living is unique compared to owning a home lies in upfront costs.
To purchase a home, buyers have to lay out a significant amount of cash before they get the keys. Down payments range from three to 20 percent of a home’s purchase price, in addition to other cash closing costs, including taxes, home owner’s insurance and title fees. Buying a $100,000 home might cost as much as $5,000 just to move in, for example.
Not so with renting. Renting an apartment home is a cheaper alternative to owning because the upfront costs are much less of an investment. The upfront costs of renting typically include an application fee, security deposit and possibly a pet deposit. While a security deposit may well be a chunk of change, the move-in costs associated with apartment living don’t come close to totaling the cash outlay needed to close on a home purchase.
Monthly living costs
One financial relief about renting an apartment is that you know what the monthly costs will be. The amount of your rent is set in the lease you sign. You always know when the rent is due, and you know it’s not going to change, at least for the period of the lease.
For homeowners, a fixed monthly mortgage payment may not be the case. Adjustable rate mortgages mean that sliding interest rates can cause a homeowner’s payments to fluctuate. And property tax rates can change as well, which also affect a homeowner’s monthly bottom line.
Managing surprises
Thanks to the lease contract, the financial commitment associated with leasing an apartment is clear. In a lease, each obligation is outlined, from rent and security deposits to charges for rekeying locks or terminating the lease early. Nearly every financial detail is clearly spelled out.
Homeowners, on the other hand, know to expect financial surprises from time to time. Home maintenance, for instance, is one of these potential surprises.
In an apartment, property management is typically responsible for most repairs — everything from fixing leaky faucets to repairing roofs. When you own a home, however, all of these duties fall to the homeowner. Taking care of a major repair like replacing a hot water heater, for instance, requires a ready emergency fund to pay for the surprise.
With apartment living, there really are fewer financial surprises. And that makes apartment life an affordable housing alternative that offers more security and peace of mind than you might have considered.
Photo Credit: Shutterstock / Andrey_Popov
I am looking forward to renting a 1 bedroom apartment near Ventura, CA. I am 72 years old and would like it to be affordable, as I live on my SS Retirement.
Hi Tomma,
Thanks for searching with us! Here are our 1 bedroom apartment listings near Ventura, CA in an affordable price range. Please let us know how else we can help. http://www.apartmentguide.com/apartments/California/Ventura/900-1100-price-range-1-beds-4jm+1z141xt/
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Apartment Guide
I’m looking for a 1 bedroom apartment that is affordable in or very close to Savannah, Ga. I am a sophomore in college and need a place that I would be able to either drive or bike to and from my classes but also somewhere I can easily budget with the money I’m making.
Hi Adrianne,
Thanks for searching with us! Here are our 1 bedroom apartment listings near the Savannah College of Art and Design. Please let us know how else we can help. http://www.apartmentguide.com/apartments/Georgia/Savannah-College-of-Art-~-Design/1-beds-1z141xt/
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Apartment Guide
Phhhfft.
That’s a crock..of bullstew..
It all depends where you are located.
You can barely find an apartment for a good price in DC.
400 sq. ft. at 1500/mo..
Seriously, I may as well get a mortgage.
Do your homework people.
Repairs as an owner is a GIVEN..
Hence, some folks like doing repairs, projects..well IMO..MOST homebuyers do.
Waiting on maintenance and calling folks or a super or landlord for repairs is and can be a pain in the behind.
I may be speaking for myself here, but I have so many people I work, do business and meet that have the same issues.
Why would one not be excited or willignto do some home DIY’s if you own it. Isnt that the good part.
You work on what’s yours..and it feels good..it’s yours for now w/ a bank mortgage….not maintain a rental that’s shoddy.
I am retiring in June and am looking now for affordable housing in or around Indianapolis. Preferably 2brs with 1.5 baths. I have a large dog so it will need to be pet friendly. My SS will be all I can count on so perhaps a rental based on income.
Hi there,
Thanks for searching with us! Here are our 2 bedroom, 1 bathroom pet-friendly listings in Indianapolis. Please let us know how else we can help. http://www.apartmentguide.com/apartments/Indiana/Indianapolis/any-500-price-range-2-beds-1-baths-pets-4ji+1z141y8+1z141xu+4ib/
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Apartment Guide
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I am looking for a 2 bedroom that is affordable to me and i’m looking for my new apartmen in norflk v.a
Hi Ronda,
We’d love to help! Here are our 2 bedroom listings in the Norfolk, Va. area. You can narrow down your search by using the refinements on the right. http://www.apartmentguide.com/apartments/Virginia/Norfolk/2-beds-1z141y8/ Let us know if we can do anything else!
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Apartment Guide