When Renting An Apartment Makes Good Sense: 4 Scenarios

Posted on: 9 February 2015

Sometimes it's hard to know whether you should go through the process of buying and owning a home or simply find a nice apartment for rent. The answer to that question can be a highly individual one, but certain preferences and needs could very well steer you toward the latter. Here are four scenarios in which apartment living through a Certified Rental Building Program makes good sense.

1. You Want More Money for Other Investments

Despite what you may have heard about the financial advantages of building equity by owning your own home, in many instances renting an apartment is more economical move. It's true that homeowners may turn a profit as the value of their property investment increases, but the reverse is also true -- as economic downturns have demonstrated all too readily in the past. Additionally, the tax advantages extended to homeowners don't really make up for the property taxes that must be paid. If you rent an apartment, you could invest that money in your own diversified portfolio to grow your fortune without owning a home.

2. You're Physically Impaired

The more physical limitations you have, the more likely you are to benefit from apartment living as opposed to home ownership. When you own your own home, you're completely responsible for its upkeep, from tending the garden to dealing with mechanical failures. Physical impairments can make it impossible for you to do any of that work yourself, forcing you to spend lots of money on contractors. But if you live in an apartment, you have access to all the maintenance and repairs your unit needs, usually free of charge.

Some apartment complexes cater specifically to the aged or impaired. Assisted living centers are not unlike conventional apartments, but they also offer medical aid, transportation to shopping or doctor appointments, home health care, and a variety of ready-cooked meals for those who can no longer cook for themselves.

3. You're a Nomad by Nature

If you love seeing, exploring, and even living in a variety of locations, then the renter's life is for you. Most apartments for rent are available in a variety of lease lengths, from simple month-to-month arrangements to 13-month commitments that let you lock in a lower rate. Renting grants a degree of freedom to those who can't stand the thought of living in one place for years at a time.

But you don't have to prefer the nomadic life to come out ahead by renting an apartment. Perhaps you live for your career, and you find yourself either at the office for long hours every day or traveling on frequent business trips. Why pay property taxes on a space you rarely inhabit? You'll also benefit from the fact that your apartment will continue to have its lawn mowed and bushes trimmed by the on-staff maintenance team while you're away. Last but not least, a business-related relocation is much less of a pain if you don't have a house to sell.

4. You Want to Minimize Your Long-term Debt

There's no getting around the fact that buying a home is the single biggest financial transaction most people will ever make. As you can imagine, almost no one has the resources to put down the entire sum in cash when closing the deal. The only option for the great majority of the population is debt, and lots of it. 30-year mortgages are the norm, during which time you can have your home repossessed by missing just a few monthly payments. To add insult to injury, you'll pay exorbitant interest rates on your home loan unless you've established a squeaky-clean credit history.

If you wish to get debt free and stay that way, renting an apartment instead of buying a home is a great start. You won't be building any equity, but you'll be financially free as long as your bank account remains in the positive integers. You'll almost certainly rely on some degree of credit along the way, but paying off a credit card is a lot easier than paying off a house!

Your financial goals, ability to maintain your residence, and feelings about geographical independence should all factor into your decision to seek apartments for rent instead of homes to buy. Give all these issues careful thought before you choose your next place to live!