Why does it seem like more people (in US at least) are renting apartments these days? The apartment buildings are getting fancier and higher priced to appeal to more people, but my hubby and I are still in our 30's, have only a couple years left on our mortgage and will then be only paying prop. tax and upkeep (less monthly cost than renting would be) and we can decorate our house as we want - have a pool, yard, pets, etc. And - if we sell, we get the profit! So - why all the renting?
2007-02-27 06:16:15 · 11 answers · asked by mmct21 3 in Business & Finance ➔ Renting & Real Estate
Yes, a house is nice, do what you want with pets, pool, etc. However, homeowners also have the responsiibilities of the upkeep of their own property. Hot water tank repalcement, other plumbing issues, mowing and upkeep of the lawns, and flower beds. Not only do you have mortgage payments, electricity bills, etc., you have to pay water, sewer, garbage. Property taxes keep going up for the dirt your house sits on. And, you have to sell the house before you can move. As for apartment renting, the rent can be in a person's budget better, not always have to pay extra for water, sewer, garbage. Nor have to pay for replacement hot water tank, nor upkeep of the property outside. And, the people have the right, usually after the lease is up, to stay where they are, or opt to move to another location. And, these days, some of the newer apt. buildings have washier/dryer hook ups in the individual apts. Or they have laundry rooms on the property.Plus, one other thing. If a homeowner has a complaint regarding a neighbor, what can be done? It's harder to remedy that then at apt., a person can report a complaint confidentially to the manager, and the manager takes care of it the proper way. There are benefits on both sides, it just depends on the person(s) and their preferences. I hoope this helps you on your question. Take care.
2007-02-27 06:38:00 · answer #1 · answered by SAK 6 · 61⤊ 13⤋
Most think that a home is a person's best investment since it appreciates in value and, like you said, once it's paid for, it is yours. However, in so many areas, real estate values have gone through the roof (no pun intended) and the average person can't afford the above average housing. That's one reason.
Another reason is that some people just don't like to be, or due to frequent job transfers...military...global corporation, etc...can't be tied to a single location.
A third possiblity is the new idea that a home is not an asset but rather a liability...read the "Rich Dad Poor Dad" series. A home, even if paid for, takes money out of your pocket in the way of taxes, insurance, upkeep, etc...whereas investment property does not since someone else is paying these items for you.
Personally, I think the ideal would be to own a duplex and live in one side...would still be my own and I could decorate etc...but have somone in the other side that is helping to pay my mortgage.
Anyway...got off on a tangent there...hope that helps.
2007-02-27 06:29:55 · answer #2 · answered by Anonymous · 17⤊ 2⤋
People that rent don't have the money and the credit to get loans from the bank to purchase a house. Another reason is apartments are everywhere, you can get a place really close to where you work. I think it's a matter of where you at in life (financially and sometimes lifestyle).
2007-02-27 06:31:37 · answer #3 · answered by Anonymous · 10⤊ 1⤋
al lot of people have bad credit or cant afford to buy a house.plus when you are renting if something breaks somebody else fixes and/or pays for it. also thier are no property taxes to pay for. thats a plus.however like you said on the sown side most cant have pets, and you really have to trustyour nieghbors, like if in case of a fire, you are more likely to get yourplace burned down as well, seeming they are so close together. but every person has a different story and reason as to why they choose to rent or own
2007-02-27 06:27:02 · answer #4 · answered by Anonymous · 10⤊ 2⤋
For myself:
I don't know where I will be in several years, so I like the flexibility.
I also don't have the money to put a down payment on a house.
My wife isn't working, since we are working on getting her immigration papers, and there isn't enough money to pay a monthly morgage, property taxes, power bills, water bills, etc.
I would perfer to own a house, since the money I'm paying in rent would be draining into my property, but it isn't practical at this point in time.
2007-02-27 06:23:35 · answer #5 · answered by forestpirate 3 · 16⤊ 3⤋
A lot of people can't get the loan to buy or I am sure they would. Some people do not like the responsibility of doing their own upkeep if something goes wrong with their place of dwelling.
2007-02-27 06:23:11 · answer #6 · answered by uneak162801 2 · 17⤊ 3⤋
Putting down roots is a BIG change. Renting allows for moving around a bit to see where you are happiest.
There are those who cannot afford a downpayment and whatnot on a house, or their credit is really horrible. So they rent.
2007-02-27 07:11:39 · answer #7 · answered by Terri 7 · 15⤊ 3⤋
Flexibility. Buying a home is a long term commitment.
Bad credit. Let's face it, lots of people have it.
No money for down payment.
Job security. They don't know if they'll make a career of their current job.
2007-02-27 06:21:04 · answer #8 · answered by Anonymous · 25⤊ 4⤋
Because some of us aren't as fortunate as others and we HAVE to rent because we would never be able to afford to buy a home and we are now renting a mobile home and see that we have no other choice,but to rent forever!
2007-02-27 06:22:17 · answer #9 · answered by linda bug 4 · 21⤊ 9⤋
Having been a homeowner for over 30 years, I can tell you the number 1 reason people put on the brakes when it comes to owning a home... fear. People are afraid of what they THINK owning a home is about.
It's an open secret as to the benefits of owning a home -- I often tell my friends it's like cruising. If you've been ON a cruise, you understand the whole spiel about what a great gig it is -- if you've never been on one, you just don't see the bigger picture.
That's what owning a home is: it's the bigger picture. It's more than a water heater, planting flowers, or mortgage payments... those are things that renters tend to dwell on. HOMEOWNERS understand the fine print details... like getting a juicy refund from the IRS come tax time.... mortgage interest ALONE can add up to a huge deduction.
[This year I'm getting over 2K back from mortgage int. ]
Another biggie is if you run any kind of service or business from your home, setting aside a specific space for work. A homeowner is allowed to deduct a portion of everything that goes into running that business. A/C and heat, water, electric, Internet access if you use your PC, equipment and furniture, gas... even repairs and insurance on your car if IT'S used for business... the list goes on and on.
Guess who collects a refund at tax time if you rent? Your landlord! Talk about raking in the dough. EVERYTHING a landlord does that is directly related to his job -- is deductible... everything.
But all that aside, owning your own home puts YOU in charge of your own destiny. I LOVE that perk. If I want all my bedrooms to have walk-in closets... my entire lawn to be the best on the block... my dog able to roam the whole yard due to a new fence.... a back yard orchard ... one of my neighbors grows grapes, I have apple trees... to put in a mini waterfall complete with waterlilies and frogs... or just to have the best tasting barbecue on the block... I can do what I want.
Of course I take care of my stuff. And the best part? No landlords bossing me around. I love it!!!
2007-02-27 08:25:23 · answer #10 · answered by Anonymous · 21⤊ 15⤋