Is homeownership really the "American Dream?" While some may say that it is, the reality is that renting is just as valid of an option, and for some, renting makes more sense than buying. Here are some of the reasons why renting may make sense for you.
1. No Maintenance Stress
When you rent, maintaining your apartment or home is not your responsibility. Sure, you are going to do the cleaning, but when it comes to paying for a new HVAC system or dealing with a plumbing leak, that responsibility (and the associated costs) falls on the shoulders of your landlord. This can be a huge relief for those who don't have the funds for repairs or the time to deal with them.
2. More Amenities
Do you want to enjoy a pool? How about a community playground? Does a meeting space sound appealing to you for events and parties? With an apartment community, you just might have all of these things. When you buy a home, you likely won't. Consider the types of amenities you want to have access to when making the buy-versus-rent decision.
3. Greater Freedom
When you rent, the only thing tying you down is the length of your lease, and in reality many landlords are willing to be flexible if you really need to move. When you own a home, you have to sell the home or be saddled with two housing payments should your life change and you find you need to move suddenly. Renting gives you greater freedom, which is important if you don't know for sure you will be in the same place for five or more years.
4. No Need for Financing or a Down Payment
When you rent, you don't need a mortgage or a $20,000 or more down payment. All you need is a security deposit, which is typically the first month's rent. This means a poor credit rating is less of an issue, and you won't need to spend years setting aside money for savings.
5. Lowered Insurance Costs
You do need insurance as a renter, but renter's insurance is far less than homeowner's insurance. Insuring your belongings is your responsibility, but insuring the property is your landlord's.
As you can see, renting an apartment is not a bad choice. In fact, for many people, renting is actually the better option. Before you jump on the homeownership "ship," make sure you weigh all of your options and make the best choice for your needs.