Whether you are single or have a large family, deciding which type of housing is right for you is vital for your long-term happiness and financial security. Apartments and single-family homes are two of the most popular options for the majority of individuals looking for a place to settle. Consider these four tips as you make this important decision.
Factor in Frequent Relocations
Frequently, apartments are used as short-term housing options while single-family homes are considered to be long-term investments. When you choose an apartment, you will usually sign a one-year lease and will be able to choose the length of future leases with each upcoming renewal. If it comes time to move for work or personal reasons, you will not be tied to a large mortgage, nor will you have to wait to sell your home before moving.
Consider the Amount of Space You Need
While some apartments boast luxurious surroundings with multiple bedrooms, most apartment complexes feature a majority of one-bedroom or two-bedroom units. This may make home ownership more attractive to larger families or to those desiring more space both indoors and outdoors. Single-family homes usually have yards, extra storage space, and larger living areas than apartments do.
Estimate the Costs of Maintenance
General apartment maintenance is usually included in your lease although some apartment managers require tenants to perform minor repairs themselves. This is an amazing benefit if you do not want to worry about replacing appliances, repairing HVAC systems, or correcting plumbing issues. As a homeowner, you will have to budget for home repairs as well as find service technicians yourself.
Choose Between Savings and Equity
Depending on current mortgage interest rates, it may be cheaper to rent an apartment for a time while you build up your savings in order to make a larger down payment on a home. With an apartment lease, you will need to make a security deposit and regular monthly payments. However, you may not need to cover utilities as these could be included in your rent. With home ownership, you will need to pay your monthly mortgage along with property taxes, home insurance, and utilities. While you may not be adding to your savings account when you hold a mortgage, you will build equity as the gap between the value of your home and the amount you owe widens.
If you are struggling to determine whether a house or apartment is best suited to your needs, you are certainly not alone. While the majority of individuals and families continue to choose homeownership over renting, increasing numbers of younger adults are discovering and enjoying the many perks of renting an apartment. As you consider your individual needs, future goals, and the money you have to spend, you will more easily be able to ascertain the best choice for you.