Many choose to purchase a home because they’re ready to try and invest and save money in the long run. But, unfortunately, if you’re renting at the top of your budget, there’s a high chance that purchasing a home won’t be financially feasible.
Buying is often more expensive than renting, even if the monthly payment is lower. Here are the top expenses that boost the cost.
When you live in an apartment, any surprise cost is something that your landlord will have to deal with. For example, if there’s suddenly a leak, your dryer stops working, or someone throws a ball through your window: you’ll have to pay for it. Renting allows for freedom from these expenses and means that your landlord will have to cover them.
Renting can save you an extraordinary amount of money since it means that the money you’re paying for rent every month is all you have to put into the property. But, of course, you still have to pay your heating, cooling, and power bills: but you would have to pay those if you owned the property as well!
The Cost of Maintenance
Maintenance is different from surprise expenses because it’s everything you have to pay to keep a property up and running. These can be the cost of replacing your roof every ten to thirty years or the cost of cleaning your siding, maintaining your lawn, or even replacing your windows.
The average homeowner spends over a thousand dollars a year on maintenance. This goes even higher in years where there are major repairs or replacements needed. Instead of trying to cut corners on your updates and changes, savvy apartment renters can avoid these costs altogether.
Property taxes are a cost that few people discuss. Unfortunately, this affects everyone who owns the property and is ignored when people try to factor in how much their home costs them. The average property taxes are nearly $2,500 a year. This is a large expense for anyone. Although some get this split down into their monthly mortgage payments, that’s still an extra $200 a month that has to be spent that renters don’t have to think about. In addition, this tax amount can fluctuate and change, meaning you’ll pay more eventually.
Luckily, renters don’t have to worry about that! Instead of pouring money into a property, they can look at apartments for rent in Chicago and know that the monthly cost is all they’ll have to pay for that property.
This cost is something that stresses out a lot of homeowners. HOAs can dictate what a homeowner can do with their property, paint it, and what lawn maintenance is required: while charging them money every month for fees. Although some HOA fees can be reasonable, in many cities, some homeowners claim the prices go into the hundreds every month. This is like paying rent on your land.
Renters don’t have to worry about this, though! Although they still have to adhere to what the apartment complex wants them to do as far as exterior decor goes, they don’t have to pay hundreds of dollars to ensure their neighbors will adhere.