Ah, the truth, are you ready for the truth? Some of the truths about Real Estate can be good, and some not so much. That is why renting has evolved so drastically over the last 15 years. People simply find renting an apartment is just an easier option. Think about it, there are no taxes to pay, no repairs to worry about, and you don’t need to spend your free time cutting the grass, leaf blowing, cleaning gutters and not to mention, all of the equipment you’ll need to purchase to be able to maintain all of these things.
Today’s luxury apartments offer the same features you typically find in a private home like: granite countertops, stainless steel appliances, plank flooring and that’s just the tip of the iceberg. Many high end apartment communities now offer amenities such as: fitness centers, pools, car washing stations, pet cleaning stations and even concierge services. So why would any one want to buy a home?
Well…. Not so fast, there are huge benefits to owning a home. A home is an investment that can gain equity over time, which is probably the largest upside to buying versus renting. If you love music like we do, you can worry less about playing your favorite song too loud and really get that bass pumping. Are you a person that likes flowers or would like to have your own garden one day? When owning a home, you almost have unlimited options available. (But be mindful of those pesky HOA’s, they might have restrictions limiting what you can and cannot do)
Another thing to consider, is your pet… Ah yes, our furry little friends that we can’t live without… Although recently more and more apartment communities welcome pets, many communities have restrictions such as size, breed, and not to mention, you will have to pay a little more up front for a pet deposit. (And a monthly fee, aka. pet rent)
Before deciding what is best for you, be sure to weigh all of our options. Be aware of what the Real Estate market is doing and get a general idea of whether home prices are going up or down. (You don’t over pay for something that could cause you negative equity in the future.) We all remember the housing bubble that popped in 2008, let’s not repeat that again… Talk to a lender, find out the amount you are pre-approved for, and the amount needed for a down payment. (The general rule of thumb is 20%, but there many finance options out there that could offer a lower down payment.) And finally, what is the interest rate that you will be paying over the term of the loan? Are there prepayment penalties? Do you take a 10, 15, or 30 year mortgage? That is why it’s best to consult with a mortgage loan professional to get these answers before for jumping in.
So Now What? Do You Rent an Apartment or Buy a Home?
Well… That’s ultimately up to you and your current situation. After you have taken this all into consideration, there are a lot of things to consider…. Ultimately, you need to make the best choice possible for you and your family. Don’t rush into anything that you’re not ready for. If a home isn’t right for yo, right now, then wait. Today’s luxury apartment communities actually offer more amenities than a typical home, so why not rent and wait until you’re ready. The best part about renting? An apartment is just temporary.
