March 9, 2016
Comparing renting vs. homeownership
Some things to consider when making the choice between renting an apartment and purchasing a house. When renting an apartment some good things to consider are all maintenance work and grounds keeping is done by the landlord. Homeowners need to handle and pay for all of the maintenance work that is done to their home. If maintenance work is needed to the homeowner’s house and the homeowner doesn’t know how to fix it on their own then they may need to hire someone else to do the work that needs to be done, which can be very costly sometimes. Mostly all bills related to renting and owning a home are the same; such as the electric bill, heating costs, possibly a water bill and so on. There are some exceptions though, like insurance premiums and how much the rent payment is versus how much the mortgage payment is. Renter’s insurance in most cases is cheaper than homeowner’s insurance. Where does the Renter’s rent payments go? When people pay rent each month the payment can go for different things; whether that be for the apartment the Renter is occupying or another apartment within the apartment complex. Homeowner’s payments go to the bank financing their home. The payments for a home are usually split in different wayx; such as some of the payment each month goes towards the principle of the loan and another portion goes to the interest that comes along with financing through a bank. When renting the payments are normally never ending until moving out of the apartment. There is no interest that needs to be paid when renting either. Mortgage payments are normally made over many years due to the financing amount is usually a large amount of money. Most apartments don’t allow pets. If the apartment complex does allow pets the landlord or main company usually has limitations on how many pets one renter can