Advantages of Apartment Renting
Contrary to the thinking of certain renters, taking an apartment or other property on rent is not a secondary option available to those who do not possess the capacity to purchase one outright. Unless you have ready cash to pay for an outright purchase, you have to go for a mortgage loan in which event there will be a much higher monthly rental to pocket out.
You might sometimes reluctantly agree to such an arrangement although amidst great financial difficulties for reasons of prestige and personal pride. Failure to meet your monthly commitments would result in the property going for foreclosure prior to forfeiture and auction by your lending institution. All this would result in a lot of legal wrangles, more worries and more financial difficulties, sometimes leading to bankruptcy.
Considering the above, renting a house for the time being presents a far better option to you in the short as well as the long run with less costs on maintenance and amenities than if the house were your own, Another major advantages is that you would be able to save for purchasing an apartment at a future date, in virtue of the lower monthly installments and maintenance costs involved in renting.
Higher opportunities for Saving
You may be told by some financial pundits that if you went for a hire purchase even amidst considerable financial constraints, you would ultimately own the house at the end of it whereas by renting an apartment, although you may pay a lesser installment, still you get no equity for it irrespective of for how long you pay.
Weigh this advice against the fact that you can safely save a considerable sum monthly while renting, especially by moving into a small apartment specifically for reasons of saving more money, whereas you may possibly have to go for further refinancing and thereby heavily increase the cost of your ultimate acquisition (if any), which may not have sufficient equity to the extent that you have paid for it.
By renting an apartment initially, you may have enough savings ultimately to buy your dream house depending on how well you manage the variables in your equation, such as renting an apartment with minimum space as against a much larger and more expensive house on a mortgage loan, and the number of years you stay in an apartment to save for a house.
No Extensive Maintenance Costs
As already stated above, in a rented apartment contact, the renter’s maintenance obligations are limited to replacing fused light bulbs, leaking water taps etc., whereas the landlord is responsible for all the major repairs and renovations in respect of the building and the garden and the electrical, plumbing and drainage systems.
However, if the renter takes on rent a house instead of an apartment, he may have to additionally assume responsibility for tending to the garden as well in addition to the replacement of minor household items.
Built in Amenities and Super Facilities
When you rent an apartment, generally you and your guests become entitled to various types of free facilities. Depending on the complex in which the apartment is located, some of the free facilities could comprise of a children’s park, swimming pool, gymnasium, a community hall, an auditorium / theatre etc., to which you will not be entitled to as a free concession if you were renting out or purchasing a house.
These are luxuries that many house dwellers can ill afford to pay and enjoy on a regular basis. Even if you could afford these luxuries, there are no such houses with all these amenities of pools and gyms etc. readily available in the market for rent or outright purchase unless at some out of this world exorbitant price or you get one built specifically for your own to such specifications.
It is not mandatory that all apartments have these special amenities and it is only reasonable to expect that apartment with more special facilities will have higher price tags attached and vice versa. It is up to you to decide which type of apartment or house to rent, not forgetting that your main objective is saving for a future dream house of your own while enjoying peace of mind without being under constant mental stress of doing monthly financial balancing tricks to meet your commitments stretched to the full, and keep your head above water.