You Can Rent a Home and Still Live Your American Dream
Home ownership is one of the goals that most Americans strive for, but not all are able to attain. After the housing crisis, many became disenchanted with owning real estate and began to see renting as the better option. If you are debating looking for a bigger apartment over downsizing to save money for a house, there are some things you should consider about renting before making a final call.
The Move-In Cost is Cheaper – The standard down payment on a house is 20% of its value, and in most cases that means tens of thousands of dollars. To rent a home, at most you are going to need three month’s worth of rent up front. If you left your last apartment in good shape, part of that can be covered when you get your security deposit back.
You Don’t Foot the Bills for Repairs – New appliances, coats of paint, or an AC system all cost a lot of money, but none of that is your responsibility when you rent over owning. There is a lot of maintenance involved in owning a home, something renters have learned to love not being a part of.
Amenities and Perks – If you choose an apartment complex in Miami to move to, you could have access to luxury amenities that cost homeowners thousands of dollars to meet. Many have their own state of the art fitness centers and pools, the use of which is included as a part of your rent. If you were to buy a house, it could take years before you are in a position to put a swimming pool in your backyard.
No Real Estate Taxes – Property tax in Florida varies depending on where you live and the size of your home, but there is no escaping the payments. Renters don’t need to worry about having a separate bill to cover any taxes on the property.
Flexibility – When you rent, you can basically move to another apartment with just a few weeks notice. This is perfect for if you want to downsize on your living space, or decide to get a bigger apartment that can accommodate a roommate.
Of course, with every positive point you can consider for renting, there is a counter argument to defend buying a home. You may pay more up front, but it is an investment, and those payments are going towards paying your debt down. Keep up on your home mortgage payments, and one day you are going to own that house free from debt, something you will never accomplish if you only consider living inside of an apartment. Consider whether you want to be a renter your whole life, or start saving to buy, and then you can begin making housing plans for your future.