If you are thinking about moving into a new apartment soon, a big decision to make is whether you want to buy or rent the apartment. There are benefits and drawbacks of buying your apartment, in addition to renting it. Here are some things to consider that will help you make your decision.
Buying Gives You The Option of Making Renovations
While renting an apartment means you don't pay for renovations, this might not actually be a benefit for you. You may want to make some upgrades to the apartment to improve its appearance, instead of just functional repairs. When you buy the apartment, you will be able to change the plumbing fixtures, install new carpeting, and paint the walls a different color. If you were renting, you would either not be allowed to do this, or would need permission from the landlord first.
The Landlord Pays For Repairs if You Rent
On the other hand, for repairs that need to be done, you don't need to worry about doing them yourself or having someone pay to complete them. If you are renting your apartment and the garbage disposal stops working or you have a large crack in your bathtub, your landlord is the one responsible for the repairs. They will pay a contractor to come in and fix the issues for you, so you don't need to worry about the costs or arranging for someone to come out and do them. If you owned the apartment, this is all your responsibility alone.
You Get Long-Term Financial Benefits When Buying an Apartment
Another benefit to buying an apartment instead of renting is that you will get the advantage of making an investment. When you rent an apartment, the money you pay to the landlord each month only lets you continue living there for another month. It can sometimes feel like a waste of money. If you owned an apartment, you might spend the same amount each month, but that money would be going toward your mortgage. It becomes an investment where you could pay it off eventually or sell it and even turn a profit.
It is Sometimes Easier to be Approved For Renting
If you have credit that isn't the best or you don't have a large down payment, buying an apartment might not be an easy option for you. However, many landlords are willing to accept you even if your credit isn't the best and all you need is first month's rent and security deposit when renting. Renting an apartment also benefits you by allowing you to move in right away without dealing with the legalities of purchasing the apartment or trying to get a mortgage loan.
Keep these things in mind when looking for apartments or houses for rent.