Buying vs renting an apartment?
Real estate hacks - December 8, 2018
So, you need to move again. Moving to another home will take time and planning. But first, you have to decide between buying vs renting an apartment. In case these options trouble you and you cannot make up your mind, consider all your current circumstances. Both options have upsides as well as drawbacks. Our tips can help you make the right decision. Here are all the factors you should consider before making a final decision between buying vs renting an apartment.
Where to start?
Buying your first home may be the biggest decision you will make in a long time. Whether if it is a house or an apartment, you should prepare financially for a big step like that. Some people plan to buy an apartment a year or even two in advance. On the other hand, renting an apartment is far less complicated than buying your own home. Renting an apartment will give you some freedom to change your location and home depending on the lease you sign. When considering your options for buying vs renting an apartment, ask yourself a few basic questions:
- How long are you planning to stay in the apartment? In case you know that you may be changing your location soon for business or other reasons, you should take that into account.
- Do you want stability or you prefer moving around? In case you have unresolved issues with your upcoming promotion at work, you should consider renting. However, if planning to start a family, buying your apartment may not be such a bad idea.
- Can you handle more financial responsibility? Renting a home comes with fewer responsibilities than becoming a homeowner. When you own your apartment, you should be ready to take care of any repairs. Also, you may have to cover maintenance costs and agree and abide with the overall rules your apartment building.
- What are your financial goals? Sometimes people will invest in real estate and buy an apartment to lease it. In case your financial goal is to prosper and earn money leasing your place to a renter, consider all the aspects and future financial goals. In this case, buying vs renting an apartment, won’t be such a hard decision to make.
- Are you afraid your rental apartment won’t feel like home? No matter if you decide between buying vs renting your real estate, there are always ways to make space feel like home. Consider cheap home improvement ideas that can make your space feel special and your own.
Buying vs renting an apartment – cost overview
The overall costs of buying vs renting a new home usually are the main reason why it is hard to make a final decision. Most of us worry about how much each option will cost. We all know that buying an apartment can add up to a pretty sum. You need to cover your real estate agents fee and your down payment expenses. On the other hand, when renting an apartment, you only have to cover security deposit costs. Next to a security deposit, your costs include the first and last month’s rent in advance.
We all know that buying your real estate will cost you more, but you will become a homeowner and invest in your future. There is another catch. When you have your apartment, you have to cover all of the major repairs and maintenance costs. But when renting, your landlord is responsible for the same costs. In a way, you will be putting money into someone else’s pockets while renting. In case you decide to calculate your options and see how different those monthly expenses will be when buying vs renting, consider using rent vs buy calculator. That way you will be able to get an idea of your overall costs in each situation.
Advantages and disadvantages of buying and renting an apartment
Moving to another town can represent a new start for you and your family. If you decide on moving to Nashville, consider both options for buying vs renting your new residence. There are numerous advantages and disadvantages. Make sure to take them into account before making your final decision about your new home.
Advantages of buying an apartment
When buying an apartment and becoming a homeowner, you will build equity and credit. Your mortgage appears as good debt, and you can use that position to use another line of credit to start your own business or buy a new car. There is no landlord you need to answer to or be afraid that he will change the rent in a month or two. On the other hand, you can adapt and transform the space any way you like. With your real estate, you get more stability in your life and various other tax benefits. To be able to buy your real estate you will need to put down payment but also have additional closing expenses.
Benefits of renting an apartment
Renting an apartment is entirely different because you don’t have so many upfront costs. You can move around without difficulties, you are your box, and you are not responsible for maintenance or repairs. Renting a home is cheaper. On the other hand, your landlord can raise the rent or sell the property at any time. In this case, you would have to organize and move in a hurry. You might have to find the best Nashville movers for your relocation and cover all the costs of the move.
You may have to move multiple times in case your landlord changes his mind. Also, you are continually losing money without a quality investment. Consider all of these aspects when deciding between buying vs renting your next apartment.