When it comes to renting or buying a home, we are often told that buying a home is the best thing to do. There are what is now considered to be common statements, like renting a home is wasting money, or you can get/build equity when buying a home. And while these sentiments are true in many cases, they are not so true in many cases as well. Having said this, the following includes many times when renting a home is more beneficial than buying a home:
1. Your goals determine what is best
Whether you are looking at private park apartments Peter Cooper Village or another location, many times you may not plan on staying in the area for approximately 10 to 20 years. So, in these cases, it will not benefit you to put money into a home that will build equity for you to sell.
2. You will not have to pay for repairs and other costs when you rent.
There are costs associated with buying a home in which renters don’t have to pay. For one, the landlord usually pays for repairs when issues arise with their tenant’s apartment, townhome, etc. However, if you are buying a home, whether an apartment, townhome, or single-family home, you must pay for repairs which can cost up to two to four percent of the value of the home. These repairs are more costly with homeownership than even if you are at fault for damage that you must pay for in the home you are renting.
Other costs that renters won’t have that homebuyers have are real estate taxes and a down payment. Landlords typically require a security deposit, but this upfront payment is not nearly the same cost as a down payment for buying a home. Down payments can be 20 percent of the home value whereas a security deposit can up to the same price as the first month’s rent.
Property taxes can be a burden for many people who are purchasing a home. These taxes usually cost thousands of dollars, but renters will not have these issues.
3. Renters will possess my flexibility.
Renters won’t have to worry about property downgrades, and they won’t have to worry about recessions. These types and other concerns are relevant to those who are buying a home. When the recession gets bad, renters can easily get another home that is more affordable. They can move to a better unit when the property is becoming less aesthetic or less in value.