The American Dream has long told us that buying a house is what makes us adults—and moreover, we’ve been told that it’s the smartest financial move. But here are five reasons to rethink conventional wisdom and start looking at apartment plans instead.
- Monthly Costs:
If you’re looking to enjoy the good life, the lower monthly costs of renting can allow you to find a more luxurious space for the same amount of money as a modest mortgage. Both the housing and rental markets fluctuate, but the shorter commitment of renting allows you to go for a pricier apartment without worrying if you’ll be able to afford it next year or 10 years from now.
- Fewer Headaches:
Buying a home comes with concerns that renting simply doesn’t. Buying a home means saving for emergency repairs, paying taxes and doing regular upkeep to make sure your investment stays a good one. Renting, on the other hand, generally means that as long as you keep paying your rent every month, someone else saves for the new roof and mows the lawn. There are numerous other perks you can negotiate into your apartment lease.
- What Tax Benefits?:
Surprisingly, the majority of homeowners don’t receive significant tax benefits from owning a house. Plus, tax incentives may change as federal budgets are negotiated, meaning your mortgage could last a lot longer than the tax breaks you’ve been anticipating.
- Invest Elsewhere:
If you’re renting, you can consider using the money you would have saved for a down payment on another investment. And since property—even during the housing boom—is generally only a modestly profitable investment, you can pick a strategy with the potential for higher returns.
- Choose Your Spot:
The rental market also allows you to keep an eye on which cities are booming and relocate quickly. Humble, Texas, for example, has experienced a job growth rate of 2.96% in the last year, has 3.09% of its apartment available for rent and has an average 2-bedroom rent cost of $1,490. By the time you try to buy in a city like this, the situation may have changed, whereas apartment hunters can go where they want nearly immediately. The numerous apartment locators now available make this process easier than ever.