One of the most frequently asked financial questions is weather or not it is better to buy a house or rent an apartment? Some would argue that buying and owning real estate means that you now have property that can be sold for a return some time in the future, but is that really true?
Consider these four factors before making that crucial decision of buying or renting, and it may be surprising that renting can be a better investment. If you were to open a savings or an individual retirement account and deposit all of what renting saves you over buying you’d be pleasantly surprised, and there are many other perks of renting that we can share with you.
1. Evaluating your financial stability
Since this is the main concern when questions regarding buying or selling arise, evaluating your unique financial situation should be priority number one.
- Mortgage payments are almost always higher than the expense of renting.
- Closing costs and interest rates: In order to buy, you need to be prepared to write a check to cover closing costs. This amount varies, but can be an expensive surprise/unforeseen cost to buyers. Comparatively, the rental security deposit, which is usually equal to one month’s rent, is refundable whenever the terms of the lease agreement end.
- Interest rates and property tax: Many buyers rarely consider the steep and recurring costs associated with their mortgage interest rate and annual property taxes. Property tax bills tend to climb from year to year as property values increase. With renting, however, your monthly payment covers all fees.
- Insurance: If your lease agreement requires renter’s insurance, it will be considerably lower than homeowner’s insurance.
- Maintenance: Who doesn’t like to enjoy a lush garden filled with seasonal flowers? What about fresh exterior paint? Yearly maintenance for the furnace? Sinks need unclogging? …You probably get the point by now. If you buy, your checkbook will be impacted by the expense of having a well-kempt property whereas if you rent, maintenance fees are cut from the list of payable items. Everything you need is just a call away, or, make that a click away since Ashford Communities offers online maintenance requests.
- Free Electricity: That’s right. At Ashford Communities residents benefit from having their electricity bill covered and paid for up to $1,000.
2. Attaining enviable amenities
Where you live sets the stage for how you will spend time making memories with your family and community. Sharing a barbecue get-together with your friends, witnessing your children make new best friends at the swimming pool, and seeing your toddler enjoy the playground are just some of the times you will want to cherish. The price tag for owning and maintaining a pool, state-of-the-art playground, gazebo and BBQ pit may be inaccessible with your budget, but renting allows you to experience desirable amenities at a lower cost to you.
Fitness Center: Renting gives you access to a well-equipped Fitness Center for free, and chances are you’ll make better use of the exercise center because it is only a few steps away from your unit.
Business Center: With a computer, fax machine and other supplies needed to help you get work done in a pinch, a reliable business center can make a big difference in your productivity.
Free Notary Service: We offer free notary service in each one of our eleven communities.
Yes. Loving your rental community and sharing the details with your friends may actually get money in your pocket! With Ashford Communities’ referral program, you get a company check in your name for every family with whom you have shared the joy of renting!
About Ashford Communities
Ashford Communities was founded in 1998 and has focused on delivering quality service to residents and prospective residents. Our commitment to in every one of our Communities has provided a significant competitive advantage and a sound platform for growth.
The company currently owns and manages 3,249 apartment units in eleven communities and has a proud history of operational excellence, financial stability and management integrity that has resulted in a solid reputation in the market.