Mortgaging Versus Renting

There are many wealthy individuals in the world who have gone throughout life renting an apartment or condominium or other place of residence where they weren't responsible for paying a mortgage. There are obvious ups and downs to taking on a home loan or mortgage, but there are also real benefits to renting an apartment.

Mortgage Benefits

The obvious benefit that you'll gain from taking on your own mortgage or home loan is that you'll end up owning your own house. Owning your own house is not only a real accomplishment for some people who take pride in the fact that they own their own home, but it provides stability after you have it paid off. Let's face it: after you have your house and mortgage paid off, the house is completely yours and in your control. On the other hand, the opposite can happen, too. If you fail to pay the mortgage payment every month, never inquire about lowering it, you just might lose your house. Some mortgages can up upwards of $2000. For some people that is their whole income; for wealthy individuals, however, $2000 is like a drop in the bucket. But for middle-class America, $2000 is an extremely high mortgage payment while raising a family.

Mortgage Cons

The obvious downside to having a mortgage or home loan that has already been discussed is the fact that you're saddled with a large house payment for years on end. Fortunately, individuals can keep this amount somewhat under control with a fixed interest rate instead of a variable interest rate. But if you have just started making mortgage payments, you don't own your house. The bank owns your house and they can take it away from you at any moment. Unfortunately, though, some people do get kicked out of their own homes simply because they have reached a foreclosure point and the bank, mortgage, or home loan company cannot leave bills unpaid.

Renting Benefits

As was mentioned, thousands of people decide to rent an apartment or even part of a house for their entire lives simply because they don't like being saddled with a large mortgage payment. For these people, there are many apartments that suit all types of lifestyles, income levels, and comfort preferences. Being able to rent an apartment means that you don't have to be tied down to one place for very long if you don't want to. Of course with a house you could always sell it if you want to move, but living in an apartment makes the process of moving to a different place a whole lot easier.

Another benefit to renting an apartment is that at some apartment communities you'll have special access to benefits that you wouldn't otherwise have. For example, clubhouses, fitness centers, and swimming pools are all luxuries and perks of being able to rent an apartment. Usually all of these things are given to the renters free of charge.

Renting Cons

One inconvenience to living in an apartment may include having to share laundry facilities. Although many apartments do include its own washer and dryer, some apartment communities have them open for the whole community. The higher priced the community, though, the better chance that you'll most likely have an inside washer and dryer inside your apartment.

Other cons to apartment-style living include having noisy neighbors, irresponsible management, and lack of space. However, there aren't too many serious problems when it comes to renting and more often than not the problems do get resolved.

Which is better?

When choosing between owning a house with a mortgage payment or being a renter and having renter's insurance, the advantages and disadvantages mainly lie within your personal preferences as well as your income level. There are many benefits to being able to own your own home, but there are also real advantages to being a tenant in a fabulous and welcoming apartment community. Deciding which living style suits your needs best will lead you to the answer about whether obtaining a home loan or mortgage or living in an apartment is better for you!