Many still think they need to achieve homeownership. While both renting and buying have their own sets of financial advantages, renting does appear to have an edge when the economy is poor. There are tremendous financial benefits to renting an apartment in Lynchburg, VA as opposed to buying a house. Here is a look at 10 reasons why renters have the better financial deal over homeowners.
No Maintenance Costs or Repair Bills
A definite advantage that renters have is that they have no maintenance costs or repair bills to pay off. When you rent a property, your landlord is responsible for all maintenance and repair costs. Homeowners, on the other hand, are responsible for all of their own repair, maintenance and renovation costs.
Access to Amenities
Another financial benefit to renting is having access to apartment amenities that would otherwise be a huge expense. Luxuries such as a pool or a fitness center come standard at many apartment communities with no additional charge to residents.
No Real Estate Taxes
An obvious benefit that renters is that they do not have to pay real estate taxes. Real estate taxes can be a hefty burden for homeowners and vary by county. Property tax generally determined based on the estimated property value of your house.
No Big Down Payment
Renters have the better financial deal upon signing. There is no huge down payment to move into a rental property.
Shaky Market Creating More Renters
While many experts claim the housing market is making a full recovery, others aren't so sure. An article written by International Business Times claims that as of yet the word 'recovery' is unwarranted. As foreclosures continue, many are scared off of buying. By renting, you are avoiding potentially owing a mortgage that is more than the house's worth.
Decreasing Property Value
Property values go up and down, and while this may affect homeowners in a big way, it does not affect renters. In a rocky housing market, renters are not as adversely affected.
Flexibility to Downsize
Today many people struggle to make ends meet. By renting, you have the option to downgrade into a more affordable living space at the end of their lease. When you are a homeowner, it is much more difficult to break free of an expensive house.
Fixed Rent Amount
Rent amounts are fixed for the span of the lease agreement. While landlords can raise the rent with notice, you are able to budget more efficiently since you know the amount of rent you are required to pay. Meanwhile, mortgages and the amount of the property tax can fluctuate.
Lower Insurance Costs
Renter's insurance is much cheaper than a homeowners policy and it covers quite a lot. The average cost of renter's insurance is just $12 per month. The average homeowner's insurance policy cost ranges between $25 to $80 per month.
Lower Utility Costs
It is often much more affordable to heat and power an apartment as opposed to a larger home. Rental properties typically have a more compact floor plan, and renters can expect lower utility costs.
The Bottom Line
For many people renting is the better option. There are plenty of examples that show how renting can save consumers a considerable amount of money. The choice of whether to rent or buy your own home is a personal one. Before making a hasty move, review the details and make the financial decision that is right for you and your family.
For information on renting a town home at Old Mill, contact us.