Renting VS Buying An Apartment: What Should You Do In 2020

To buy or to rent? This is probably an all-important question to prospective homeowners. Important in the sense that there cannot be a single answer to this type of question. As an individual, whether under the guidance of a financial expert or not, you are faced with numerous factors; financial elements of the decision which cover the initial plus the ongoing costs and the personal/emotional aspects of the decision. Either way, balancing between the two is an intricate process that demands a well thought out pathway considering the short- and long-term implications of your decision.

Nonetheless, if you are faced with a dilemma as to which path, it is imperative to keenly look into the aforesaid factors and examine the pros and cons given your homeownership tastes and preferences. For buyers, the initial leap towards home-buying decisions should be based on your financial ability. Basically, the home buying process is split into two cost steps. The down payment cost which oscillates between 5% and 20% of the home tag price and the closing costs which must be paid within specified timelines and percentages. 

There are also the PITI (Principal, Interest, Taxes, and Insurance) costs that are attached to homeownership.

In addition to the down payment and the closing costs, there are other costs that are borne by home buyers. Such include; home maintenance (roof plus new appliances). 

With such realities, an individual will most likely consider the cost of renting a residence like a temple terrace apartment where a 1-bedroom apartment goes for as low as $600. Though apartment developments like this have hardly come at a time when the US policies are biased towards encouraging homeownership, for instance, through federal tax incentives, to a majority of average income earners, renting remains the only affordable option.

Besides the financial implication, homeownership has been associated with a huge sense of responsibility and it is closely associated with success.

While renting a home-like Florida’s Temple Terrace Apartments has been equated to the down-drain cash flush, the financial constraints plus other positive externalities have justified this path. 

Surprisingly, calculations have clearly revealed that buying a home is costlier than renting, especially where homeownership is envisaged to last for a relatively shorter period.

Factoring in the demographic factors, younger people are more advised to consider renting than buying a home. Their future is uncertain hence flexibility is required. Flexibility is more rent favored compared to homeownership.

Encouragingly, the fixed lease terms on well-managed developments like the Temple Terrace Apartments legally bar landlords from arbitrary rent raises within the terms’ leases. This brings certainty as to the expected rent expenses. Also, proponents of home renting have argued that unlike the fixed costs of home buying, terms of lease and rent costs can easily be negotiated hence a likelihood of lowering your monthly bills.

Basically, the Rent Vs Buy equation is a necessary evil that not only derives the answer from not only your financial position but a myriad of other factors as well. Summarily the major factors that should always ring into your mind should include; the length of stay. The more you intend to stay, the more economical sense to buy. The projected investment return on average. Though considered as an external cost that is relatively hard to arrive at, Average Investment Return (AIR) should be a primary consideration by aspiring homeowners. The Home Appreciation Costs and the projected Mortgage rates should also be your leading lights as you weigh in whether to buy or rent a home.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top