Reasons to Rent an Apartment

Faced with a decision to rent an apartment or buy a home? Renting an apartment may be a better financial decision, depending on your circumstances. I interviewed Robert Barbera of Barbera Properties and I concluded that renting doesn't necessarily mean you're throwing away money or unnecessarily paying a landlord. Consider all the costs associated with owning a home and you may find renting is a better financial decision.

Maintenance

Okay. You and your family find the home of your dreams and you can qualify for one of today's low interest rate mortgages and you can afford the monthly payments even when you add in taxes and insurance. Stop. Have you considered what's needed to maintain a home: plumbing repairs, painting - inside and out, carpeting, replacing rotting fascia boards, mowing grass, fixing leaky faucets and . . . there's more.

Quality apartment owners are quick to fix problems that tenants report.

"We don't believe in deferred maintenance," said Robert Barbera. "If we get a call from a tenant to repair something as small as a leaky faucet we'll be right there."

Apartment renters - check home maintenance off your list of actitivies.

Flexibility

If you get a call to take a job assignment in another part of the country, renting an apartment may allow you to have a month-to-month rental option or a one-year lease. If you're not ready to settle down, or you can't settle down, then renting may be your best option. Robert Barbera told me that the universities in and around Pasadena such as Cal Tech, employ professionals who may only need an apartment for no more than a year.

Old Style Charm

During my second year of college, I went to school in Pasadena, California and lived in the Castle Green apartments. It had marble staircases and an elevator that only worked by hand. It was a former luxury hotel with wide hallways and thick walls.

You might find an apartment in your town that has more style and charm that either a modern-day condo or a home. Another apartment building in Pasadena, the Ely House, is a converted mansion built in 1913 for silent film star Anna Ely. It's close to shopping in the Pasadena Playhouse district and major employers.

It is a two-story Colonial with balustrades which wrap around the top paired, double hung windows on either side of the portico.

Personal Finances

According to the National Multi-Housing Council (NMHC), if a family plans to live in one place for less than five years, then renting may make the most financial sense. The costs of buying and selling a home can total 10 percent or more of the price of the home. If you buy a home to live and gain appreciation, historically you may be better off putting the money into stocks. Or else learn to buy rental units.

I came across a blog for real estate in the city of Arcadia, California and the San Gabriel Valley, the Arcadia Housingblog.com, that made the argument that paying monthly Principal, Interest, Tax, and Insurance may not be worth the tax deduction that homeowners receive.

Renting may give you better control over your finances.

We have also discovered during the past year, that the value of many homes was overstated and the equity has dropped considerably around the country.

You can run calculations yourself to determine if renting or buying a home makes the most sense. The Arcadia Housing Blog links to Mortgage-calc.com and a rent versus buy calculator.

So you're renting? You may have made a smart financial decision.