Reasons to Search for Apartment Rentals Rather than Purchase Real Estate
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Am I Crazy Because I’d Prefer to Search for Apartment Rentals Rather than Purchase Real Estate?
If you prefer finding apartment rentals that suit you instead of buying real estate, you're perfectly healthy. Don't place a panic call to your psychologist. Look around you. There are probably just as many apartments for rent or other rental properties as there are homes for sale. Guess why that is the reality. Simple. Just as many people prefer to rent as to buy property. There are a number of perfectly good and solid reasons why.
- Are you single, newly married, or living with a significant other? Buying real estate is a major commitment, typically destined to be a longer term proposition. Many people are not prepared to make that type of commitment. This is a solid answer to the question, “Why rent real estate?”
- Does the real estate market project a downward cycle? It is normally a mistake to purchase property at the height of the market. There is little place for it to go but down. These cycles always occur, regardless of the steps the government and others take to prevent it. In a market that is about to head south, you're much smarter choosing rental apartments than paying top dollar for property.
- Are you still debating where you want to live and put down roots? Unless you've made a thoughtful decision on both where you absolutely want to live and for how long, finding apartments for rent that fit your criteria may be the better choice.
- Owning real estate in the short term, even in a good market, may not make you any substantial profit. If you believe there is a chance that, for work or personal related reasons, you may have to move in a year or two, you should consider rental apartments. Even if the value of your property increased 10% since you bought it, increases in real estate taxes, maintenance, and real estate selling fees may consume most or all of that increase. Instead of just packing up and moving to your next destination, you'll face marketing, showing, negotiating, and closing on the sale of your property.
This is not a complete list, but it should reassure you that you don't need to visit a psychiatrist's couch for wanting to rent. You need to spend quality time thinking about your current professional and personal situation, what you foresee in the coming years, and how you want to live your life.