The Benefits Of Apartments Versus A Mortgage

There are so many benefits to looking at apartments instead of attempting to get approved for a mortgage

. While homeownership has its benefits, it often leaves property owners with a hefty loan and more monthly expenses than their budget can bear. Instead, consider all of the positives that come with a smaller living space and a smaller payment.

Deposit vs. Down Payment

Before moving into any apartments, renters must provide some type of safety deposit. The amount varies from property to property and could be more or less, depending on the specific situation. For example, if a resident plans to have a pet, the deposit is usually increased to cover any damage or cleaning that will need to be done one the person and pet have vacated the premises. In some cases, the deposit or at least part of it, can be returned. On the other hand, a mortgage usually requires a substantial amount of money before moving into the home. A person will not get this money back until the home is sold, and even then, there are no guarantees on how much a person will make on the sale.

Monthly Payment vs. Mortgage

When the time comes to write out the check for the residence, there is a major difference between apartments and homes. Aside from that hefty down payment, the monthly cost tends to be significantly high. Each payment includes the amount due on the loan, money that goes into escrow for property taxes and homeowners insurance, and mortgage insurance if applicable. While there are properties that cost less and it is possible to get a monthly house payment similar to the cost of local apartments, however, there are still other costs that are not always taken into consideration.

Care and Maintenance

Apartments tend to include certain expenses in the monthly payment. Most include water and sewer, and others will include the cost of all utilities. This can be a real savings compared to a person buying a home, paying the mortgage, and paying all of the utilities. Once all those things are taken care of, there is still the yard work and the things that need to be repaired or replaced throughout the house. When something goes wrong in one of the units, call up the company and someone comes out to take care of it, free of charge. While it often takes a while to get someone to come out, in the end, it does get handled.

Homeownership does come with its own benefits. In theory, you get back all or most of the money that you have put into the house when you sell. However, it is a long-term commitment that ties up a lot of extra money and can get fairly expensive to care for over the years.

by: Alfred Ardis

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