Why Rent?The demand for apartment housing continues to rise due to the housing market crisis. Today, it makes financial sense to rent.
A recent survey to find out why people choose to rent found maintenance free living, cost and flexibility are the most common reasons to rent. The largest number of those responding to the survey indicated they rent because of the maintenance free living apartment living provides. They have a strong desire for the convenience of a maintenance person available for common household repairs as well as the freedom of not needing to cut the grass and keep up the landscaping.
Many choose to rent an apartment for financial reasons.
According to the National Multi-Housing Council (NMHC), if an individual plans to live in one place for less than five years, it may make the most financial sense to rent. The costs of buying and selling a home can total 10 percent or more of the price of the home. Additionally, home ownership in a desired neighborhood may be much more expensive than renting in the same neighborhood. Others indicated they wanted to live in a good school district while owning a home in the area was not within their budget. Renting also affords individuals the freedom to invest in a variety of stocks, bonds and mutual funds that can provide a higher return on investment as opposed to property ownership. According to the NMHC the average home value increases only five percent each year, whereas the average stock value increases seven percent and bond value increases eight percent each year.
Flexibility and the lack of a long term committment in an apartment are also important.
Renting may be a good choice if you fall into one the these categories:
- Young adults just beginning their careers.
- Single parents who do not have time for maintenance or the money to buy a house in a desired school district.
- Empty nesters who want to travel.
- Anyone tired of long commutes to work.
- Anyone who wants abundant amenities and social activities where they live.
- Professionals who transfer often.