Many people have difficulty deciding between living in an apartment or a house. If you’re one of those people, you may ask yourself if you should buy a house or rent an apartment. It’s a tricky question, and there are pros and cons to each choice. We’ve broken it down to give you a quick guide to help you decide.
Renting an Apartment
- Easy in, easy out! Most apartments offer short-term leases and month-to-month options, so you can move in fast and get out quickly.
- Credit requirements are lower than when buying a home.
- Apartments are low maintenance with management to take care of things that break, and no lawn care required.
- Amenities like a workout room and pool are often part of an apartment complex.
- Rental rates can increase every time your lease is up for renewal, leaving you guessing your housing costs.
- A security deposits can be costly, and there’s no guarantee you’ll get it back.
- You’re at the whim of someone else’s rules and neighbors surround you on all sides.
Buying a House
- Build equity in a home you can call your own.
- You can borrow against your home’s equity.
- Your monthly mortgage payments stay the same with most loan programs.
- In most cases, you can deduct the interest you pay on your mortgage from your taxes each year.
- You get to choose where you want to live instead of choosing what’s available where there are apartment complexes.
- You can have just a patio with no fence or yard, a backyard with a lawn and garden, property for large animals or livestock, or anything in between.
- You get to make the rules, paint the walls, hang the pictures, remodel, and create the space you want and the home you want to live in.
- Privacy from management or a landlord coming into your home uninvited or unannounced.
- With most loan programs, you’ll need a down payment when you buy a home, which is like but usually more than the cost of a security deposit.
- Closing costs are part of the expenses related to buying a home.
- You’ll be responsible for all maintenance, repairs, and upkeep, including lawn and landscaping.
- Homeownership includes paying property taxes each year, based on assessed home value.
- To get and keep a mortgage loan, homeowners must have insurance.
Are you on the fence about choosing to rent an apartment or buy a house? For more information on the disadvantages of renting and the advantages of buying, including all you need to know about available loan programs, reach out to Midland Mortgage Corporation today.