Are you having a tough time deciding on whether to purchase a home or rent an apartment? This is not an easy question to answer. It usually depends on what your personal preferences and likenesses are, and of course your financial situation. Here are some common points that need to be addressed and should discussed regarding the buy vs rent mentality.
Property Taxes
When you rent an apartment, most of the time you won’t be paying the property taxes. The owner of the apartment community will be responsible for these payments. Each state has their own set of guidelines. Look up the tax rate in your specific county and state for the property tax. For example lets say your home is valued at $350,000, and the tax rate in your neighborhood is 2.8%. That would amount to around $9,800 dollars per month. If you were to stay in that house for 5 years that amount would equal $49,000. Your home would have appreciate this latter amount for you to earn your money back. However, property taxes can be written off each year. This does have tax benefits.
Maintenance
As a renter you probably won’t be responsible for any maintenance repairs. A simple call to the landlord or leasing office, and the problem should be taken care of. If the air conditioner has malfunctioned, or the carpet is starting to come up around the edges, you should not be responsible for any repairs. However, if your a homeowner, all repairs will be your responsibility.
Interest Rate
Unless you paid cash, you probably have a loan for your home. And you probably have a certain interest rate you are paying as well. Although this can also be a tax write off, this is very similar to a rent expense. Many homeowners state that renting an apartment is like “throwing money away”. However isn’t paying the interest on a home like paying rent on an apartment?
Least Term
Most lease terms for apartment communities are 12 months or less. Renting an apartment home gives you the flexibility to move in a short time frame. If your a home owner, you may have to wait until you sell your home. And depending on the market, a sale may be quick or could take years.
There are many other factors including school districts, crime rates, and job growth that can affect the value of a home. Good luck with your apartment search or home buying experience.
Read more about leasing Bedford TX apartments and Euless apartments.
|
