Reasons Why Renting An Apartment Is Better Than Buying A Home

Who would want to rent LoDo apartments in Denver when they can buy a home? The answer is many. Owning a home of your own is one of those classic American dreams that still appeal to people. You use your home as you see fit without answering to a landlord. You could even become the landlord. And if you ever feel like shifting, you could sell it for a good price. This level of freedom is not available to renters. But there are many reasons why you might be better off in your 1 BHK flat, from a purely financial viewpoint.

Renting Apartments Cheaper
People think of buying a home as a one-time investment and renting one as an ongoing one. They forget about other costs like maintenance and taxes that come with owning a home. The cost of renting and owning a home with a mortgage varies from state to state but there’s no doubt that the former is cheaper in all states than the latter. The monthly utility bill is usually lower for an apartment than a house because of their smaller size meaning they need less electricity, gas and water supply.

No Maintenance BIlls
Renters don’t have to maintain or fix the complex, that’s the landlord’s responsibility. You simply need to worry about keeping your room tidy. If your pipeline bursts or your lights start acting up, you can rely on the landlord. But if you choose to be the landlord, then you are responsible for all repairs, maintenance and renovations that can cost a lot.

Access To Amenities
If you live in an apartment complex, then you may have access to facilities like a gym, tennis court or swimming pool because the cost is usually included with the rent. Homeowners need to have such facilities built in their premises with proper documents and permissions. Condo-owners may also need to pay monthly fees for access to these facilities.

No Property Taxes
Renters don’t have to pay the property taxes, homeowners do because the former doesn’t own a property. The calculation is complex and varies from state to state but depends on the property’s value and the amount of land. Today’s homes are larger and costlier which can translate to the cost of the taxes.

Lower Insurance Costs
A renter’s insurance policy only includes the items they own like furniture, laptop, TV, etc. A homeowner’s insurance includes the home as a whole. So it’s no surprise that the renter’s insurance policy is cheaper averaging about $12-$20 per month when compared to homeowner’s insurance that usually costs $25-$80 per month.

Security Deposit Is Cheaper Than Downpayment
Usually, at the start of a tenure, renters have to pay a security deposit that costs about a month’s rent. This is much cheaper than the downpayment averaging 20% needed to secure a home loan. And most people don’t have enough savings to purchase a property without loans but can afford rents.

Mostly Unaffected By Property Value
Real estate values keep fluctuating throughout the year which can affect the cost of the home thus affecting the amount of tax and mortgage you need to pay. Renters are usually unaffected because the rent is usually fixed until the end of the lease term. An increase in property value can lead to an increase in the cost but the landlord must give the renter a notice first to give them time to prepare.

Freedom To Move
You should buy a home only if you plan on staying for at least five years, because if you plan on moving out before that then the home’s sales price may not cover the money you invested in it. On the other hand, renters can move out of their current residence and shift to another with ease. This freedom is especially important for people whose career choices involve moving about. It’s also useful in case the rent hikes.

These are the main reasons why renting LoDo apartments in Denver is better than buying a home. Renting has its downsides as well, like the restrictions placed by the landlord but those downsides are much simpler to overcome.