Leasing vs Buying: Which is Right For You?
There are so many people in the predicament of whether to lease or buy a house or apartment. Many of the older generations have bought their own homes, and younger generations would ideally like to follow in their footsteps. But, younger generations are dealing with higher prices and larger amounts of debt, making the whole process of buying a home much more difficult. So, should young people even bother to strive for a mortgage?
Upfront Costs
There are upfront costs to both leasing and buying, but there’s a huge difference in the amount. If you want to buy your own property, you’ll need thousands of dollars as a deposit, along with enough money for solicitor’s fees and often, home improvement. When you lease an apartment, you’ll usually need the first months’ rent up front, along with any other fees, like potential damage protection if you have a pet. Most people end up paying $2000 averagely to get started on a lease.
Recurring Costs
As a homeowner, you’ll be responsible for many more costs than the average renter. If you miss a mortgage payment, you not only risk having your home taken away from you, but all of your assets too. You’ll need to pay home insurance, property taxes and utilities. Most first-time home owners are unprepared for the property maintenance costs that come with buying a home. Renters often don’t need to worry about these problems. For example, leasing a property from STL CityWide Apartments means you’re covered by your landlord for all maintenance issues. So, when your toilet stops working, you don’t need to cover the cost of a plumber.
Improvements and Renovations
The one place where homeowners have the upper hand is home improvements. When you own your own home, you don’t need to ask for permission to renovate or make improvements. Once the improvements have been paid, homeowners often add value to their homes and potentially sell it on for more money in the future. However, renters need to ask permission to make improvements and if granted, never see a return on the finance they put in. It can also cause bad blood between renter and landlord if the renter insists on the landlord making changes.
Laundry
Many apartments don’t have built-in laundry units. Some apartment buildings have laundry services but it’s usually an additional cost. It often costs less for homeowners to do their own laundry in their own homes than it does for renters to use a launderette. The cost of doing your laundry outside of your own home can add up quickly, and it can take up a lot of time. It can cost up to $5 per cycle, which can cost around $150 per month.
There are pros and cons to both buying and renting. The major pro of renting is that you aren’t paying a lot of money right now. But, the major pro of buying is that you’re developing equity for the future. So, it really depends on whether you want to focus on what’s happening today or plan ahead.
