Buying vs. Renting an Apartment: Which Is Best for You?

Deciding to buy a home is a big decision to make. You’re committing long-term to a location, and you don’t know what will happen in the future. That’s why many people have problems deciding whether or not to buy a home or stick with renting an apartment.

You’re not alone in your struggle, either. Reports show that over 40 million Americans move every year. Many of those people will decide if buying a home for the first time is the right choice.

If you’re struggling to come to a conclusion in the buying vs renting debate, this post will help you make your choice. Keep reading to learn the ins and outs of renting an apartment and buying a home.

Renting an Apartment

Renting an apartment is a great way to get a short-term living arrangement or move somewhere long-term. Here are a few things to consider if renting may be in your future.

More Moving Flexibility

Are you not convinced that you’ll live in your current area for a long time? If so, you may not want to put down roots by purchasing a home.

Having a home to deal with adds an extra hassle if you ever have to move. You’ll need to go through the home selling process, which can take months.

That issue doesn’t exist with renting. You’re free to move on when your lease is up. The only thing you need to worry about is finding another apartment in your new location.

Maintenance Help

It’s not on you to fix home issues when you have an apartment. When you experience any problems, call your property manager, and they’ll dispatch someone to look at your situation.

On top of getting help fixing problems, you won’t have to pay for any repairs. It’s on the apartment owner to pay for and resolve tenant issues.

Of course, some apartment managers aren’t great about fixing issues. You risk living under a bad management company if you don’t do enough research.

Amenities

If you’re buying an apartment in a large complex, you have more to look forward to than a place to live. Most apartment complexes offer apartment amenities to make life easier for the residents.

Here are a few for you to consider:

• Pre-furnished apartments
• Pool
• High-speed internet
• Fitness center
• Lounge area
• Controlled access

Other amenities are available based on where you rent, so look at your options to see what amenities appeal to you.

Lack of Control

Renting an apartment doesn’t come without some serious drawbacks. A lack of control is one of the most significant drawbacks you’ll see.

You can’t do anything you want in your rental. You’ll find what you can and can’t do in your rental agreement. Common restrictions include painting, mounting objects to walls, pets, and home improvement projects.

If you want a space to call your own and want the freedom to change things as you see fit, a rental may restrict your ability to create the space you want.

Buying a Home

If you have the money and financing available to buy a home, it’s worth moving on from rentals. Here is what you should consider if you’re ready to become a homeowner. 

Control Over Changes

Making your home your own is one of the biggest benefits of buying a home. You don’t have a contract with your landlord dictating what you can do. As long as you don’t break your location’s building codes, you can make whatever changes you want.

The only other consideration is if you live in an area with a homeowner’s association (HOA). These associations govern what residents can do in some cases, so you’ll need to check the HOA rules in the areas you’re interested in to see if any restrictions will impact you.

Equity Growth

Equity is the next big thing to consider when you’re thinking about starting house hunting. You don’t get any equity in a home when you rent an apartment. All you’re doing is paying the bills for your landlord.

When you own a home, you get more equity in your house every time you pay your mortgage. This will increase your net worth and give you the option to sell your home in the future for a profit.

Fixed Mortgage

While you may be able to lock in your rent when you sign a lease, that doesn’t mean it will stay the same forever. You may wake up to find a rent increase that drastically increases your bills.

You won’t have any surprises when you get a fixed-rate mortgage. While you may have other unexpected expenses, an increase in your mortgage rate won’t be one of them. You know how much you’ll pay every month and can make plans around that.

Responsibility for Repairs

It’s all on you when you’re a homeowner. You don’t have a management company to call for issues. You’ll need to fix problems yourself or pay for an expert to get help.

This can add unexpected costs to homeownership. If you don’t have savings, you’ll be out of luck until you get the cash to fix problems.

More Privacy

While you can find apartments that offer a buffer between your neighbors, that’s the exception rather than the rule. In most cases, you’re right next to your neighbors. You can hear the people next door and on other floors.

You have more privacy when you own your home. You’ll probably have neighbors, but there will be more separation. You can also add fencing and landscaping to your yard to add privacy when you’re outdoors.

Buying vs Renting: Now You’re Ready to Make Your Decision

There is a lot to consider in the buying vs renting conversation. Renting is a great way to stay flexible and remove home maintenance tasks from your responsibilities. However, you’re also missing out on home equity and freedom when buying your own home.

Now that you’ve read the post above, you should have a better idea of the benefits of renting and buying. Use them to make your decision and find the perfect location for your next move.

Head back to the blog to find more tips that will help you make other big decisions.