Lower housing costs
This comes down to where your apartments for rent is and where you live, but renting is often cheaper than owning. Buying a home is a very large investment, and while that cost is spread out over years, it still comes with a hefty price tag, whereas renting oftentimes does not. There are additional costs to homeownership and these usually include rates, taxes, insurance, and maintenance for which the homeowner is responsible.
More flexibility
Renters can live almost anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive area such as Arlington, VA might be out of the question for some home buyers, however, if you look at Arlington apartments this can be more feasible. Although rent can be high in areas where home values are also high, renters can more easily find an affordable monthly payment than home buyers.
Shorter term commitment
Want to move to a new up and coming neighborhood? Move when your lease is up. Do you have a job offer in another city? You can accept it and move. Compared to buying, the upfront costs of renting is a bargain. You’ll likely pay a deposit and a month’s rent before moving in, unlike the tens of thousands you’ll put down on a house.
No maintenance/repairs
When you own a house, you are responsible for all of the maintenance and repairs from setting the refrigerator to maintaining the yard. However, a benefit of renting, you usually don’t have to worry about things breaking or the water damage. If/when something needs to be fixed, you call the landlord. It’s his/her responsibility to keep up with the property. When you own a home, expect to spend an average of 1% to 2% of the value of your home on repairs each year. If you do not spend that every year, consider it a good year, because big expenses do come up like a broken HVAC, roof repair and furniture replacement. Again, as a renter, not your issue to worry about.
No down payment
Closing costs on a mortgage can cost up to 5% of the purchase price, including numerous fees, property taxes, mortgage insurance, home inspection, first-year homeowner’s insurance premium, title search, title insurance, and points, which are prepaid interest on the mortgage. Even if you buy a home with a low down payment you will have to pay for private mortgage insurance (PMI)—a monthly charge that helps offset the risk of you defaulting on your loan.
