The fundamental goal of most people is buying a home. While this is undoubtedly the best option for some people, there are various benefits associated with renting an apartment. Thousands of dollars are often bound to a purchased property and this prevents people from investing the money in some other place.
Perhaps the money invested in a house could have been invested more informatively and securely in another location over a long time period. Renting an apartment is much cheaper than buying a home in most countries. The less costs and reduced economic risks associated with renting an apartment justify the benefit of renting an apartment compared to buying one.
Discussion
The first aspect that would be examined is the cost factor of leasing an apartment. It is evident that renting an apartment would cost much lesser than paying a mortgage fee for a house with similar dimensions. The overall cost of a house is tremendously increased by the mortgage fee as well as the interest charged on making such transactions. Hence, purchasing an apartment can never be a better option that a person would choose no matter the circumstances. There is a much lower significance of the monthly cost involved in renting an apartment compared to purchasing one (www.getrichslowly.org).
Renting an apartment does not necessitate the need to manage concerns regarding attorney’s charge cost and the substantial down fee. This is contrary to purchasing a house that requires documentation and several other issues that accompany house purchases. Renters do not have to be concerned about documentation issues. Moreover, persons purchasing houses are obliged to cover for house and insurance taxes. Insurance is essential in providing defense, which is contrary to the majority of the risk involved in purchasing property.
The taxes and insurance rates have been gradually rising over the last few decades. The prices of houses have also been rising for the past few decades, and many people are declining to make purchases. For this reason, renting remains the best choice that people should opt to go for. Prior to making a decision of either purchasing or renting, it is necessary to weigh the market worth of the house against the expenses that would be incurred on renting an apartment.
The results of weighing indicate that renting an apartment is much cheaper compared to buying a house. While renting, a person does not have to worry about several costs such as down payments.It is worth noting that renting an apartment is an implication of less economic risk. It has been extremely hard to forecast the costs of houses due to fluctuating prices and economic instability. It is therefore extremely risky to invest in a house, and this significantly reduces the number of buyers. A person needs to intensively analyze the merits and demerits of the potential actions taken since life is full of uncertainties (www.getrichslowly.org).
The other point is that makes renting preferable to purchasing a house is flexibility or the ability to move. Renting a house makes moving much easier compared to buying a house. This is because for a purchased house, a person has to spend a lot of time looking for potential buyers and convincing them to purchase the property. This is contrary to a rental house where an individual just has to settle issues with the landlord and then freely move to a desired location. There are some professions such as the military that necessitate frequent moving. Such professionals require rental houses since they can easily move at any given time or day.
Renters can move from one house to the other with more ease compared to house owners. This is because they just have to merely shift their furniture and other assets from one house to the other. Contrary to renters, house owners have to consider several aspects prior to shifting. A house owner has to first of all sell a house and secondly, look for a novel house to buy. This is extremely difficult since most home owners are tied down to a long time period of mortgage (www.getrichslowly.org).Mobility is the other merit associated with renting.
Most houses for sale are located in suburban locations. This means that house owners have to depend on their own means of transport to get to and from the city centre or any other place they desire to go. Rental apartments on the other hand, can be found at the centre of principal cities. This implies that renters do not necessarily have to own a car so that they can go to and from the city. A renter can walk with ease to many destinations without having to worry about the distance involved.
Moreover, they would worry less about the amenities they would need to utilize on monthly, weekly and daily basis.nting an apartment is a much better option for young people who are fond of traveling and exploring novel situations and places. It becomes more like an adventure since they experience new surroundings each time they move. This contrary to being tied to a single point or location until the cost of mortgage is cleared. Renting gives an individual interested in exploration the chance to do so without incurring heavy obligations financially.
People with lower income per capita is given a chance to live in high-rent apartments due to the fact that the cost or renting is much lower compared to the cost for mortgages (www.getrichslowly.org).Renting has more positive qualities compared to buying a house. Hence, a person debating on whether to buy or rent an apartment needs to have a careful thought about their lifestyle. The less costs and reduced economic risks associated with renting an apartment justify the benefit of renting an apartment compared to buying one.
Conclusion
The demand for purchasing houses has substantially reduced because of the various cons associated with buying a house. Many people prefer leasing an apartment because of the reduced costs and increased flexibility. One incurs less cost in renting an apartment compared to purchasing one. The increasing gap between demand and supply of houses is contributed by the fact that many people are opting to rent apartments.
Reference
http://www.getrichslowly.org/blog/2007/07/16/renting-vs-buying-the-realities-of-home-buying/ Retrieved on March 19, 2011
