If you’re looking for a great new place to live, you’re likely debating the pros and cons of either investing in a house or finding apartments to rent. It can be a hard decision, after all, as both have their own distinct advantages. But which can ultimately save you more money?
Read on for a detailed examination as we answer once and for all whether it’s cheaper to own a home or rent an apartment.
It’s no secret that millennials are flocking to apartment complexes in droves, but did you know that baby boomers are, as well? An article recently published by CNBC states that more than five million baby boomers are expected to rent within the next two years.
But why are they choosing apartment complexes instead of the suburbs? In short, because they want better amenities at a lower cost.
When investing in a home, you’ll need to pay for renovations, as well as extras like washers and dryers. Typically, a washer/dryer combo can cost at least a few hundred dollars.
In contrast, many complexes have their own laundry facilities on-site for a low-cost or even free.
Upfront Costs: Homes vs. Apartments to Rent
It’s clear that apartments are a better choice for those who want new, top of the line amenities for less money. But which will cost you more upfront?
Let’s start by examining the upfront cost of purchasing a home. Typically, a new homeowner is expected to pay anywhere from 3.5 percent to 20 percent of the home’s total cost.
Let’s be generous and say you’re buying a $200,000 home and are expected to pay 10 percent upfront. That’s $20,000 expected immediately.
But we’re not done yet. You’ll also have to pay realtor fees, closing costs, and home inspection fees, which add another few thousand to your upfront cost.
So what about the upfront cost of an apartment? Aside from a security deposit, application fee, and your first month’s rent (sometimes rolled into your security deposit), you’ll likely pay less than $1,500 in total.
That’s less than 1/10th of what a down payment on a home costs.
Cost of Upkeep
Anyone who has owned a home can tell you that there’s always something to repair. And those repairs can begin to add up quite fast.
It costs an average of $1,204 a month to maintain a standard home. Additionally, you’ll have to wait for contractors and repair workers to show up or pay for materials yourself and possible damage your home.
Needless to say, you’re not going to pay anything near that when looking for apartments to rent. When you lease an apartment, you get access to 24-hour maintenance.
Which is Cheaper: Finding Apartments to Rent or Buying a Home?
Ultimately, you can expect to pay tens of thousands of dollars to purchase a home, and that’s without repairs and new amenities. With an apartment, you get far more for your money, including great amenities, friendly service, and on-demand maintenance.
If you’re looking to save, there’s no doubt about it, renting is the way to go.
Are you in the market for a new apartment? If so, contact us today and schedule a tour. Montrose Square Apartments is Fort Wayne’s choice for affordable apartments with a warm atmosphere.