How Renting Can Be Cheaper Than Owning
Buying a house is the dream of many people. We are taught that buying a home is part of how we should measure success, that our lives are not complete without a home of our own. But in some areas of the United States, it might actually benefit you more to rent an apartment.
Why Is It Cheaper to Rent Than to Buy?
Renting seems like a more expensive route than buying. With renting, you will never own the property that you are occupying. You will always be paying a monthly payment that will never decrease. This is the reason that many people end up buying homes to begin with. There are some people who live in areas where it is actually more expensive to own than rent.
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Places where it is cheaper to rent:
- Riverside, California
- Phoenix, Arizona
- San Bernadino, California
- Areas in Northern Virginia
- Austin, Texas
In these parts of the country, it is cheaper to rent than buy. The prices of homes in these areas have risen drastically, and the price to buy is higher than many people can afford.
So Why Rent?
Some people just do not understand the benefits of renting. For some people, buying is not the ideal financial option when they are juggling other debts. Many people cannot handle a 20-year mortgage, student loan debts, property taxes, etc. This is the reason why many people rent apartments instead of buying homes.
[ Search: Find Apartments for Rent in Arlington ]
It is a great idea to get rid of as much debt as you possibly can before purchasing a home. Many people look into buying a home as soon as they get out of college, which saddles them with two different loans that they have to repay.
With renting, you can easily pay off your other debts, since you are not paying homeowner’s insurance, property taxes, maintenance costs and mortgage payments. These payments that a landlord has to pay are spread out between you and your fellow tenants, which makes it more affordable to rent in places where it is more expensive to buy.
The savings you accrue can go into a savings account for buying a home later on. This will enable you to make a larger down payment on the house of your choice, which will in turn give you a smaller loan to pay off. This also gives you the chance to take your time looking for your dream home and waiting for the home to come on the market.
[ Related: Get to Know Your Rights as a Renter in D.C. ]
Even if you already have a home of your own, you might need to move to a different area. If you rent out your home and then rent an apartment for a while, you can save up a large sum of money to buy the next home you will live in. You should always check to see if renting is cheaper than buying when you are looking into moving into a new area.
Renting allows you to pay less. However, you should be aware that renting is a responsibility, and you should consider whether or not you will be able to afford the monthly rent. Falling behind creates bad credit for you, making it difficult to get another apartment in the future.
Find your next apartment in the area with Apartment Showcase.