While home ownership remains the key element of the American Dream and is a primary store of family wealth over the long term, there are numerous advantages to the apartment or home rental which one cannot get with home ownership. For a start, many people simply are not ready at given stages of their lives to take on the challenge of owning a home. It is true that equity builds up in a house and property values tend to consistently rise upward over a stretch of ten, twenty and thirty years. But there are other headaches associated with home ownership, both financial and personal, which the apartment renter doesn’t have to face.
A home owner is responsible for maintaining insurance. He or she is responsible for the maintenance of the property, for groundskeeping, and for all repairs and renovations. Furthermore, the entire burden of those expenditures which can vary across a wide range are solely upon the homeowner as costs over and above that monthly mortgage payment, which includes interest. By contrast, a monthly rental payment is a fixed cost and therefore predictable in terms of monthly budgeting.
The responsibility for the maintenance of rented property, for all necessary repairs, upgrades, and renovations, rests upon the landlord or real estate company who owns multiple apartment buildings or rental houses. The collective rental revenues pay for those expenses. So in a real sense, rental tenants are all supporting each other as much as the landlord. Renters are also not burdened by the transaction costs involved in buying or selling a home, which can amount to $15,000 dollars in some markets. And the money which isn’t going toward all that expense is instead available for positive financial investment elsewhere.
If the expenses and opportunity costs would calculate to substantially more than renting an apartment or a house, then rental is the smarter choice. Estate agents who act for realtors such as Realty in Ames IA, for example, can assist the prospective renter or owner in making the financially correct decision for each person in each case. And if the client decides that rental is the better option, the realtor’s expertise can be a tremendous aid in finding the right sort of property for the individual or family. This includes providing all information about conditions and responsibilities. Click Here and find out how Realty in Ames can help you.