Happy New Year readers! As clocks strike midnight on the 1st of every year, we can’t help but to find ourselves looking back on what was and ahead to what is yet to be. What will this next decade bring to you- or better yet, what will YOU bring to this next decade?
Goals and resolutions can be intimidating. Is your goal to land a superb apartment so you can travel, care free? Or will you purchase your first home so you can crank that music while you clean? Oh, you don’t do that? Yeah, us either…
Of course there are pros and cons to both, renting vs. owning. There’s also misconceptions to both. We’re here to offer a little support by breaking down the benefits of renting. You know, so you can be more prepared to make those big moves this decade!
Benefit #1: NO PROPERTY TAXES
Wow. This is huge and frequently overlooked. Often time’s people will say “your rent is more than my mortgage payment.” But let’s chat about those taxes. According to the U.S. Census Bureau, in 2017, the
average Wisconsin resident spent roughly $3,300 on property taxes for their home- based on the median home value. That’s an additional $275/month. And, with property values increasing and newly built homes getting larger and larger, property taxes continue to be on the rise and can be a significant financial burden. Thankfully, when you rent, this financial burden is on the landlord’s shoulders and not your own!
Benefit #2: LOWER INSURANCE COSTS
Homeowner’s insurance can be hefty, and is required per the lender. On average, homeowner’s pay roughly $1,200 per year for homeowner’s insurance. Renter’s insurance on the other hand is between an average of $120 and $190 per year. That’s a monthly savings of up to $90/month. Add that to the $275 for property taxes and you’re already at $365 in “back end” fees.
Benefit #3: MORE FLEXIBILITY
Leases are often written for a term of 12 months or less with the option to renew. But what if you don’t want to renew? You pack up and move on, it really is that easy. Additionally let’s say you have a job relocation out of state and you need to move mid lease. Most landlords allow for subletting and all landlords are required to do what they can to mitigate your damages by re-renting the apartment for you. If you own a home you’re locked into a much longer term and if you need to move, well, you better hope the home can sell. Not only sell, but sell at a price that at least covers your initial investment. No one wants or intends to lose money when selling a home. After all, that’s why people say you should “invest” in homeownership isn’t it?
The other side of flexibility doesn’t just have to do with moving and lease terms. You rent and want to travel?- go for it! You have that flexibility as you are not tied down to daily maintenance tasks such as lawn care- but more on that later.
Benefit #4: NO DOWN PAYMENT
According to Zillow, the median home value in the United States is $229,600. If you want to avoid that pesky PMI or MIP (private mortgage insurance or mortgage insurance premium) you’ll need to fund a down payment of 20%. That equates to an average down payment of $45,920. Compare that to the average security deposit amount of one month’s rent (not to mention refundable assuming you don’t damage your apartment) and… well, you get it.
Benefit #5: AMENITIES
We can’t speak for everyone, but we’re not familiar with many homes that feature an indoor whirlpool, dog wash area, outdoor pool (with care free maintenance on your part), theater room, etc.- just to name a few. If your community features a clubhouse you can host events and parties in a place you love- your home! If they offer an outdoor gathering area you can enjoy an afternoon grilling with friends rather than contemplating if you should cut the grass or hand weed! And, if you have an exercise facility right on site you don’t even have to leave to get that work out in (did we mention there’s no monthly fee for the gym either)?
While not all properties feature state of the art conveniences, they most likely offer other perks that are often forgotten about. How about that friendly management team who answered your first phone call you made? The ones that take care of watering your plants while you’re away or accept packages while you’re at work? And maintenance, we can’t thank them enough for unclogging our toilets late at night or ensuring that common areas are well maintained!
Speaking of maintenance…
Benefit #6: CARE FREE MAINTENANCE
“Care free maintenance” covers many things. For starters it can mean that you don’t have to shovel, leaf blow, mow, etc. Now, many will note the fact that they enjoy gardening and taking care of their lawn- which we totally understand as it is many people’s hobbies or passion! That being said, I bet those same individuals wouldn’t enjoy taking care of the heat that just went out in the dead of winter- or better yet, paying for that hefty emergency call bill. That’s where the joys of renting come in!
Let your dedicated maintenance staff take care of issues with your appliances, HVAC, electrical, carpentry and more so you can spend more time enjoying that indoor whirlpool!
Overall there are a number of benefits to renting that are hard to pass up! It’s best to do your research and make the best decision for YOU- but we hope this information has helped break those misconceptions of renting!