Why You Should Rent Rather Than Buy
The pressure to buy a home rather than rent can be overwhelming. Yet few realize that renting can be not only a more economical option but also a logical choice. Research has found that people who rent can save about $560 every month over buying a house. The same study noted that a house is a depreciating asset and offered the example of investing in a $100 house in 1985. The study found that it would be worth $293 today, whereas the same $100 invested in stocks would be worth almost four times as much at $1,146.
From renting beautiful apartment buildings to a single-family house, renting really can save you money. One study estimated that almost 20% of house buyers could have saved money by renting instead. Another Harvard University study noted that “renting made better financial sense than owning” in a number of situations. In addition, renting does not require the same downpayment, meaning you can invest the funds into higher return investments — even during a real estate boom.
Given that as much as a third of home owners move during the first five years after buying without ever building equity in their property investment — the first five years of mortgage payments only cover bank interest — renting becomes even more attractive as an option.
Financial benefits are the only reason renting a loft apartment or house is better than buying. If you enjoy luxury living, luxury apartment rental lets you enjoy luxury features for a reasonable price. Opting for professionally managed city apartments offers renters financial security, services such as on-site maintenance and first-class amenities, and an overall higher standard of customer care. The luxurious, high quality living space of beautiful apartment buildings becomes much more accessible to a renter. Rentals also often include water and heat, cutting costs.
Renters account for 35% of the American population; in Philadelphia the percentage is 26.4%. In 2013, the average monthly rate in Philadelphia was $819.