The Advantages of Renting an Apartment vs. Owning a Home

Compared to owning a home, living in an apartment rental is incredibly easy. Why do the work yourself when you can enjoy the following benefits:

· Dedicated property and maintenance staff to call if anyone goes wrong

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· No back-breaking snow shoveling, lawn maintenance or pool/sauna care

· One single monthly rent cheque commonly pays for everything (instead of some cut off bills and fees when you own a house or a condo)

You Get More for Your Money

Believe it or not, you can commonly rent an apartment or house for much less than the cost of buying it - especially if you live in a larger city. And if you want to be right downtown, renting is roughly all the time more affordable than owning a condo (and you get a lot more living space, as well, as uptown apartments are commonly much larger than uptown condos).

As well, apartment renters don't have to come up with the thousands of dollars in down payments, closing costs and fees for things such as construction inspections, legal counsel, land replacement taxes and insurance.

And this doesn't even factor in the cost of borrowing - in the first five years of ownership, most mortgage payments are applied only to the interest, not the capital. This is money that you won't get back when you sell your home (and you'll still have all the hassles and extra costs of putting your house on the market).

That Tax Break is Not Guaranteed

Getting a big tax break is supposed to be one of the most advantages of owning a home - but you can't all the time rely on getting this break. If your every year mortgage interest payment, plus any other deductions you are entitled to, isn't greater than your approved tax deductions, you will not receive any tax benefit from owning a house.

If you rent an apartment, however, you'll all the time receive some form of tax relief, as a large portion of your rent is tax deductible every year.

Maximum Flexibility

Renting provides an mountainous estimate of flexibility. You can pack up and leave immediately at the end of your lease (which can be monthly or yearly, anyone best suits your lifestyle) - there's no waiting to sell and no agonizing about the housing market before you move. For many people, the free time to live where you want and when you want is a huge benefit that naturally cannot be overlooked.

Minimum Risk

For homeowners, the stakes are enormously high should their finances crumble. When they can't pay the mortgage, the lender has great leverage - the house and all the equity invested in it could be in jeopardy. That's not to say there aren't consequences if a tenant can't pay the rent - but the financial devastation that comes with losing your home is far greater than being evicted from your apartment.

In addition, there are some social aid programs that are run by all levels of government to help citizen in need pay their rent so they won't be evicted. Are the banks as lenient or supportive when it comes time to pay the mortgage?

Ultimately, production the decision to whether rent an apartment or buy a home involves much more than naturally comparing rental rates, mortgage payments, lease lengths and tax breaks. It's a composition of all of the personal circumstances happening in your life - both now and some years down the road.

The Advantages of Renting an Apartment vs. Owning a Home