9 Signs You Should Consider Renting An Apartment
by Arnab Dey Real Estate 12 May 2022
There are plenty of reasons to consider renting an apartment instead of buying one. While purchasing your own place may feel more like an investment, there are many factors that can contribute to more favorable long-term returns in the apartment market than what you might expect from homeownership.
If you’re thinking about renting an apartment you might want to visit Real Estate View to have a variety of options and these nine signs can help you decide if it’s the right choice for you, so read on to see if any of them apply to your situation!
Here Are 9 Signs You Should Consider Renting An Apartment:
1) Owning costs more than rent
The average home buyer spends 28 percent of their income on a mortgage, according to data from Trulia. That’s significantly more than what someone would spend on rent—even in high-priced markets like New York City or San Francisco.
Keep your housing costs down by renting, at least for a little while. That way you can invest that extra money in building up your emergency fund or other investments (like retirement). If you want to buy down the road, consider purchasing a condo with friends and family so you can share expenses and save even more on housing.
2) Saving for a down payment takes forever
When you buy a home, your monthly payments include more than just principal and interest; they also include taxes and insurance. If you’re renting an apartment, you pay these expenses as part of your rent. This means that renters can save significantly more money every month—sometimes hundreds of dollars or more—than people who own homes outright or are paying off mortgages.
When you start to account for all those extra savings, renting begins to look like a very attractive option. If saving up enough money for a down payment seems daunting right now, consider making it one of your long-term goals—then revisit it periodically to see if your efforts are helping chip away at it! You may be surprised at how quickly things add up.
3) Homeownership may not be for you
Many people dream of owning a home, but it isn’t right for everyone. For one thing, homeownership comes with its own set of responsibilities and expenses. Some people simply don’t have enough money to pay for a house, so renting is more practical—and could be even cheaper in some cases. Here are nine signs that you should consider renting rather than buying
4) Homeownership isn’t right for your lifestyle
For all those reasons and more, homeownership may not be right for your lifestyle. Whether you’re only planning to stay in a place for a short period of time or would rather live in a city than suburbia, renting apartments near Gainesville is often a better choice.
The American Dream isn’t accessible to everyone and that doesn’t make it any less real. That said if you are considering buying but just haven’t pulled the trigger yet, take these nine signs into consideration before finalizing your decision. They could ultimately save you from making a costly mistake down the road!
5) Your credit score isn’t great
Landlords want to know that you are financially responsible and stable. If your credit score is on a downward trend, or if you’ve had a couple of late payments in your history, then it could be difficult to secure housing.
Fortunately, there are ways to improve your credit score so that when it comes time to rent an apartment, you can do so confidently. Improving your credit score takes time but there are things you can do immediately—like paying off debt—to get yourself started on the right track.
6) Financing is too difficult
Many of us can’t take advantage of real estate investing because we don’t have enough cash saved up to purchase a rental property. A great way to get your feet wet in real estate investing without losing all your cash is to lease-to-own instead. With a lease-to-own agreement, you make monthly payments toward buying a property and once you own it outright, there are few limitations on what you can do with it.
7) There are no vacancies in your area
When you’re trying to rent a new apartment, vacancy rates in your area are a key factor to consider. If there are very few vacancies in your area, it may be difficult for you to find a home that is both right for you and affordable.
A low vacancy rate means fewer homes are available and more tenants competing for them. If there aren’t many vacancies, renters might need to offer more money upfront or move farther away from work and schools.
8) Housing prices fluctuate too much
There’s a certain level of predictability with renting. Housing prices tend to rise on a year-to-year basis and sometimes you can find yourself underwater when trying to sell a home in just a few years.
If you aren’t sure where you want to be for several years, purchasing a home might not be for you. This can give renters peace of mind that they know exactly what their housing costs will be each month, making it easier to budget and plan for other expenses like travel or dining out. When you rent, your housing costs won’t fluctuate nearly as much as they would if you owned.
9) Why haven’t you bought a home yet?
When you’re thinking about buying a home, it’s natural to be thinking long-term. And that makes sense—buying a home is one of the biggest decisions of your life. But there are other considerations as well, like affordability and getting started on your savings goals.
If you’re unsure whether buying or renting is right for you, ask yourself these questions: Why haven’t I bought a home yet? What can I do to feel more comfortable with my decision? Sometimes just going through that exercise is enough to make a decision feel less intimidating. And if it isn’t, there’s nothing wrong with putting off any big decisions for now.
When it comes to Real Estate views, buying a home is one of your biggest investments. Whether you are considering renting or buying, consider these 9 signs when deciding what type of living situation is right for you. If none of these signs resonate with you, then buying a home might be more suitable.