Home Ownership versus renting an apartment
March 5th, 2011
While renting allows the ability to upgrade an apartment according to financial funds, owning a home still offers more benefits including investment in future equity and lower monthly mortgage payments.
One must ask the question why would I consider renting an apartment when I have the opportunity to buy a home? With renting there can be some advantages like the ability to choose an apartment to fit one’s financial needs. Possessing the capability of upgraded the apartment if personal finances increases. Relocating to another city or state because of employment, health, or family issues would be much easier. Even though there are still other situations to take into consideration when making this decision of renting versus buying.
When obtaining home ownership this is an important step in financial and future equity. Gaining the security in knowing that with every monthly mortgage payment received is an increase of equity for the future. Home ownership also provides security in long-term housing for retirement with future equity growth. This will also give the ability to leave something financial for future children and grandchildren.
Another step is the security in low monthly mortgage payments without fear of increase in monthly payment. While renting there are annual increases in rent that can be up to $100/month. This rent increase is at the discretion of the apartment community and furthermore they do not inform the potential renter of this annual increase when moving in. With a fixed mortgage the monthly payment will always remain the same and is usually lower than renting an apartment.
According to homebuying.com another advantage to buying a home is the ability to obtain a home equity loan. People who carry high interest credit cards can borrow money from the gained equity in their home at a much lower interest rate and pay off these...