After owning for years, many decide to rent and they sell their homes. They are signing leases in beautiful apartment communities.
For decades, conventional wisdom has held that people should opt to buy rather than to rent. Renting, it was suggested, was like throwing money away. But when the economy foundered and properties lost equity, it made more sense to rent than to buy in many markets.
So what is the equation now?
The big picture is that mortgage interest rates remain low, and prices are at 2003 levels. It would seem the perfect climate in which to buy — and many say it is.
Many say it’s better to buy than to rent and if you want to be a homeowner, now is the time.
But not everyone agrees.
There are financial reasons that people rent, of course, but sometimes people just don’t want to deal with upkeep and the other responsibilities of ownership. That remains true.
The flexibility of renting is a key attraction. With a rental property, you can buy yourself time if you’re not sure you’re going to stay in an area or if you think you might want to trade up to a larger place.
Renting is popular among people who are new to the area and unsure of what they want. They can rent an apartment, to see if they like the lifestyle, the area and the commute.
Convenience matters, too: People like to be able to call the management company and say, the dishwasher isn’t working. Renting means no maintenance and no stress.
Beyond repairs, there is the consideration of recurring expenses when you own a home. There are property taxes, homeowner’s association dues and condo fees. Factor in utility bills and property taxes, and the financial burden can be significant. Moreover, early in the mortgage, the interest pay-down is not unlike rent in the sense that the buyer is not gaining much equity.
There are far more expenses associated with owning, over renting.
Indeed, the flip side of “putting down roots” is that those roots can grow deep and tortuous — financially, psychologically and logistically.
For information on renting an apartment in Ridgeland, SC contact Auston Chase Apartments.
Excerpts - Real Estate – Herald Tribune