Apartment Rentals: Surviving the Tough Times

Considering the current state of the economy, apartment rentals do seem like the sensible choice. Being able to have your own home is great, but when it comes down to being practical, renting an apartment saves you money, and frees you from the financial constraints of home ownership.

Many people, having been taught that owning real estate is the way to go, tend to buy before they are really ready. Apartment rentals, being the most affordable variety of housing, is a great way to get on (or back up on) your feet, allowing you time to save enough money to make a larger down payment when you do buy your house.

For a number of years, lenders have been somewhat “desperate” for business, allowing people to buy beyond their financial capabilities, because “the house is still there as security”. Many of these people were not ready, and would have been much better of renting an apartment for the time being.

Apartment rentals have some definite advantages, besides allowing time to save your down payment:

1. Low maintenance: Any repairs done to the apartment is the owner’s concern, not yours.

2. No huge commitment: With standard lease periods of six to twelve months, compared to the repayment period on a house, you won’t be tied down for long if you wish to move.

3. Cutting your losses: If you expect to move again within a few years, renting an apartment saves you from wasting money on closing costs, which you only recover after about two years.

4. No taxes: With you not being the owner, the real estate tax bill is not your responsibility.

5. Not living on the edge: Many couples buying a house are JUST able to make it. As the economy gets worse, with prices of everything else rising, many people paying off mortgages simply do not earn enough to cover all their commitments.

At the end of the day, considering all of these arguments, apartment rentals make more sense now than ever before. Taking some extra expenses off your hands may just be the key to survival.