The decision to rent vs. buy is one that people throughout the United States face many times. According to the United States Census Bureau, adults in the country will move an average of nine times. With each move, the question returns: Should I rent or buy?
According to RentCafé, 34 percent of Americans are renters, and the number is growing. So, what makes so many people choose to rent vs. buy? When differences in costs, maintenance, and the ability to move easily are taken into account, it’s easy to see how renting can often win out over buying. Read on to see why.
Save Some Extra Cash
Renting can give you a chance to save up a little extra cash. A fixed rent each month allows you to plan for expenses and save the extra. When you own a home, your monthly cost may change each month as you deal with expenses beyond the mortgage, such as taxes and insurance. In 2019, 82 percent of renters said renting is more affordable than owning, an increase from 67 percent the year before.
How much money do you have saved up for a down payment? You’ll probably need 20 percent of the total price of your home if you choose to buy. The initial cost of renting, on the other hand, generally consists of just a security deposit. The security deposit is about the cost of a month’s rent, and may be returned when you move out.
Then there are your costs over time. Unlike homeowners, you don’t need to pay property taxes, and renters insurance costs much less than homeowner’s insurance. According to a 2017 study by the Insurance Information Institute, the average renters insurance policy costs $180 per year, while the average homeowners policy costs $1,211.
Someone Else Can Handle Repairs
If you are on the fence about if you should rent vs. buy, the work involved in keeping up your own home might tip the scales for renting. No matter how well you take care of your home, things happen from time to time. The broken air conditioner isn’t going to fix itself, but somebody will take care of it for you if you are renting. At Sherwood Apartments, we are ready to tackle anything you need as soon as you call. Our friendly staff are trained and certified to make repairs, and you can relax knowing they’ll give your home the very best care.
Enjoy More Flexibility
Do you have that wanderlust and find it hard to stay in one place for too long? Renting is the perfect situation for anyone who needs the flexibility to move. A lease is much shorter than a mortgage, so it is easier to make adjustments if you need to. “Regardless of age, mobility is one of the top reasons people decide to rent,” writes Robert Pinnegar at The Washington Post. “For millennials just entering the workforce or in the process of building their careers, the ability to relocate is a major factor. Even if they are in a financial position to purchase a home, millennials may choose to rent to have the flexibility to take advantage of new job opportunities as they arise.”
We value our residents at Sherwood Apartments, and we want to make sure you are taken care of—even if you need to move. That’s why we offer a loyalty bonus: If you move from Sherwood Apartments to another AMC property or vice versa, we’ll give you $250 to help you hit the ground running.
With a difference in costs, less responsibility, and more freedom, it’s easy to see why more and more people are choosing to rent. At Sherwood Apartments, we want to make coming home the best part of your day; give us a visit and see what the benefits of renting can do for you.