There’s no doubt about it, home ownership is expensive. While the amount of your mortgage may remain constant as a home owner, other expected and unexpected expenses such as maintenance and repairs, insurance, and property taxes can significantly increase the cost of home ownership year to year.
In addition, if you have an adjustable-rate mortgage, your mortgage payment itself can increase, making what at first seemed like an affordable payment suddenly become out of your budget.
Researchers have estimated that close to 20 percent of home buyers would save money by renting, while another study conducted by Harvard University found that in many situations and for many holding periods over the course of the last 15 years, renting actually make better financial sense — and cents, get it? — than owning a home.
While home ownership was at one time considered a sign of success or “making it” in life, more and more Americans are choosing to rent the best apartments as opposed to purchasing a home. In fact, developers across the country are racing to construct new beautiful apartment buildings that are home to new luxury apartments due to consumer demand. New lofts and apartments have become so popular and are in such demand that they’re being used to revitalize many metropolitan and urban areas.
Many are choosing to rent the best apartments in their area, such as luxury city apartments, for a number of reasons, with the most popular being cost. Renting and apartment makes it easier to estimate your finances and plan a budget. Tenants don’t have to worry about paying for unexpected repairs out of pocket, as many of these are covered under the lease agreement.
In addition, renting allows for flexibility, which is important to many Americans who are pursuing careers that may require them to relocate. The longevity of mortgage makes this nearly impossible.
