When Renting Makes More Sense Than Buying

The following is a guest post.

Buying a house is said to be the American dream, and it makes sense financially for some people. However, buying is not always a good option. Renting a home can give more flexibility and does not require concern about repairs. There are also many amenities available at apartment complexes that are often not available when buying a home.

Low/No Maintenance

When you rent Calgary apartments, as well as apartments in many other locations, you will probably not be responsible for maintenance and repairs on the home and property that you are renting. This is especially helpful to people who are busy and don't want to deal with things like leaky faucets and yard work. If the apartment comes with appliances, the landlord will probably be responsible to fix and/or replace them when they aren't working properly. Repairs and maintenance can also be expensive. Most renters are not responsible for paying these costs. If they are, they can usually be deducted from the rent. The landlord assumes most of the risk and the renter reaps many benefits.

Renting a home makes sense from a financial point of view for many people, but what is better for you? There are many calculators available online that can help you do the math and see which option is better for you and your family.

Easy to Move

According to information from the U.S. Census Bureau, about 14.19% of Americans move each year. Most people don't stay in their homes for the length of their mortgage or longer. The market is fluctuating rapidly and right now it is much easier to find a house to buy than it is to sell a home. Unexpected situations such as job relocation or loss are becoming more common, so flexibility is a great reason to rent a home rather than buy one.

Selling your home can be difficult and you may not make a profit when you sell. When you are renting a house or apartment you only have to wait until your lease is up or pay a fee to break the lease. It can also be expensive and time consuming to prepare a home for sale and make sure it's clean and ready for showing to potential buyers.

Home Prices Don't Always Go Up

Many people buy their home as an investment and expect that the value of this asset will increase over time. Home values don't always go up, and they often don't increase enough to warrant the risk that the consumer is taking when they buy a home. According to the US Foreclosure Filing report, 803, 489 foreclosures, repossessions, and default notices were reported in just the first quarter of 2009. Foreclosures make neighborhoods less desirable and pull housing price averages down.

According to the Federal Housing Finance Agency, housing appreciated less than 1% across the US in the fourth quarter of 2010. Housing values actually went down in most states and the only states that showed appreciation of more than 1% for housing were North Dakota and Alaska.

You may realize that your apartment is overpriced for the area that you live in, but it's easy to move to a cheaper one as soon as your lease is up. You don't have to worry about selling a house that is overvalued or being upside down in a mortgage.

Amenities

Apartment buildings often offer amenities that people don't have in their current homes, such as a gym or fitness center. Exercise equipment is expensive and can be frustrating to fix if it breaks down. You don't have to pay for extra gas or membership fees if there is a gym at your complex.

Swimming pools are another amenity that is common to apartment communities. The amount of water that is used in a pool is expensive and so are the chemicals necessary for maintaining a pool properly. Using the community pool is free and it's always available. When it needs maintenance and/or repairs, you can tell the staff and someone else will fix it or pay for the repairs.

Many apartment communities have a clubhouse or community room that is used for large gatherings. This is a great place to host a party with minimal effort. It is usually free and can probably hold many more people than an apartment. Communities also host events that help you get to know your neighbors and have fun.

When Should You Buy A Home?

When you are planning to stay in your home for a long time, it may be a better option to buy than rent. Many expenses have to be taken into account, including the cost of homeowner's insurance and home maintenance and repairs. Real estate taxes must also be paid.

When buying a home, it is important to pay attention to the prices of homes in the area that you want to buy to avoid overpaying. It's also a good idea to have a job that is stable and not likely to be affected by the economic downturn. Beginning your mortgage with a 20% or more down-payment will help you get a lower interest rate. It will also help to ensure that you are not upside down in your loan if you must sell quickly.

Getting a mortgage payment you can afford is key to buying a home successfully. One benefit to home ownership is that your mortgage payment will likely remain the same for the life of your loan, while rent prices often increase over time. Keep in mind that there are often tax breaks available to home buyers and you can deduct mortgage interest on your taxes.