A lot has been left unsaid when it comes to the benefits of renting an apartment. Leasing one has tons of advantages, some of which have been listed below.
The tax break is guaranteed
One of the greatest benefit of owning a home, is getting a tax relief of some sort. However, getting this is not something that can always be relied on. If a home owners annual mortgage interest payment, plus any other deductions they are entitled to, isn’t greater than the standard tax deductions, then no benefit will be received.
However, with leasing an apartment receiving this is always a guarantee. This is due to the fact that a large portion of the rent paid is tax deductible every year.
Maximum flexibility is ensured
Renting provides a huge amount of flexibility. It is possible to pack and leave immediately after the expiry of a lease. This can be yearly or even monthly. There is no waiting to sell and going over the tiresome housing market before moving. For a lot of people, the freedom of being able to live anywhere and at any time is beneficial and can simply not be overlooked.
When it comes to owning a home, the stakes are pretty high once funds are depleted. When mortgage cannot be paid, the lender has great leverage. The house and all equitable investments could be in great jeopardy. This does not mean that there are zero consequences if a tenant fails to pay rent. However, the pain of being evicted cannot be compared to that of losing a house.
Apart from that, there are also several social service programs run by the government, that help people in need pay rent in order to avoid eviction. It is almost impossible to find banks or rather money lenders, that are lenient enough when it comes to paying mortgage.
You get more for your money
It is well known that the cost of renting an apartment is much cheaper as compared to that of buying a house. This is especially when living in a large city. In most cases it is more affordable than purchasing a condo, not to mention the generous amount of space availed. In addition to this, tenants do not have to worry about coming up with expensive down payments, closing costs and fees for things such as building inspections, land transfer taxes, legal counsel as well as insurance.
This does not even factor in the borrowing cost. Most mortgage payments are applied only to the interest rate and not the capital during the first five years of home ownership. This means that this money will not be gotten back after selling the home. This is even after going through all the hassles of putting the house on the market.
Ultimately, the decision of whether to own a home or rent an apartment needs to be done after a lot of consideration. Therefore, it is important to exhaust all factors before making a decision.