More Than One Third of American Households Are Renters
Moving into her first apartment, the young college graduate wanted to make sure everything was as close to perfect as possible. Although not every piece of furniture was new, far from it in fact, she had selected and accepted her used and donated pieces as carefully as if she were purchasing it new. Her favorite piece was the old television stand that she had refurbished into a brightly painted cooking island for her kitchen. She also loved the set of four mismatched chairs that she found to match the one new purchase, an expanding kitchen table. She would normally use the table without the extra leaves, but when she had extra company for dinner she could sit as many as 10 comfortable.
It did not matter to her that everything was not new and that the kitchen cabinets were a little bit darker than she liked, she was just thrilled to have a space of her own. And since it was her own, she afforded herself the luxury of making sure that everything was as perfect as she could make it.
For many Americans, apartment or condominium rentals are a very good option. As least one time in everyone’s live, rental properties simply make the most sense. Apartments make especially good sense for people who find themselves in one of the following situations:
- People who do not enough money to make a suitable downpayment on a purchase. Overextending financial obligations for a house that they cannot afford is a problem for many first time home buyers. Rather than getting into a home loan that will leave the buyer strapped for cash, many financial advisers recommend renting a less expensive place while saving up a substantial down payment.
- People who anticipate a move within the next five years. Renting is an especially good decision for anyone who anticipates moving within five years. Whether the anticipated move is for an upcoming marriage, a new job, or simply because of uncertainty, a rental agreement is easier to get out of than a home loan. For people who only live in a house for three years, for example, the needed sale may not provide enough money to pay off the mortgage. Renters, on the other hand, simply need to stay until the length of the signed lease.
- People who are uncertain of what area to live in when moving to a new city. Sometimes relocating to an area has to happen quickly. People who have not had enough time to research exactly where they would like to live in a large metropolitan area often do well renting for a year before buying. Living in an area for 12 months will allow these people to figure out the ideal location for a perfect purchase.
- People who do not desire to take care of lawns, landscaping, and house repairs. Even with the proper down payment and an understanding of a city and its best locations, sometimes renting makes more sense than buying a home. If, for example, you do not have any interest in home maintenance tasks like shoveling snow from sidewalks or mowing yards, being a home owner is likely not a good fit. Instead, renting provides a better option for people who want a landlord to take care of building and ground maintenance.
- People who want to use many of the extras that rentals provide. Let’s face it, some apartments have a lot of credit bonus features. If you are someone who wants to take advantage of swimming pools, saunas, workout gyms, and clubhouse get togethers, apartment living can be a perfect solution.
- People who want to wait for an affordable home to purchase in a desired location. Sometimes the right home is simply not available. You may have found a home in the right location, but it is out of your price range. Sometimes the home that you can afford is in the wrong location. Renting is a good option for buyers who are waiting for the perfect mix of what they are looking for.
The average American moves 12 times in a lifetime. For many of these moves, these Americans find themselves moving from one rental property to another until they find a perfect purchase.