Did you know that more than 36 percent of American households rent their home? While owning a luxury property is more profitable than renting one in many housing markets, it isn't always the case, especially in metropolitan areas.
If you've decided to move into a luxury apartment, you may wonder whether it's best to rent or buy. The choice can be tricky, but this post will help you consider some of the benefits of each decision. After reading, you should know whether renting or buying is best for you!
Benefits of a Luxury Apartment Rental
Many people decide to rent an apartment, especially if they aren't sure what the future holds or don't have the money for a down payment.
Others are content renting because of the flexibility that it offers. If you want to move to another area, you don't have to worry about putting your property on the market.
Let's look at a few other practical reasons some people prefer to rent an apartment rather than buy one.
Fewer Maintainance Costs
One of the benefits of renting is that you are not responsible for repairs or maintenance. If there's a leak or the air conditioner breaks, all you need to do is contact your landlord. It's up to them to handle the costs.
On the other hand, homeowners need a cushion in their budget for unexpected expenses.
No Real Estate Taxes
Property taxes can be pretty expensive for those who live in luxury apartments. That's because the cost is calculated based on where you live and the value of your home. Thankfully, renters don't have to worry about paying property taxes.
However, some states, such as Texas, have no property tax, which may make owning a home more accessible.
Access to Amenities Without Extra Costs
Part of the lure of luxury apartments is the amenities they feature, such as a fitness center or tennis court. As a renter, you can use these special services without paying extra. However, owners of luxury properties must pay homeowners association dues every month, which may amount to hundreds of dollars.
Lower Insurance Costs
Another great reason to rent your luxury apartment is that you'll pay less for insurance. Homeowner's policies cover the entire home, while renter's insurance since it only covers the possessions inside the property. So, you can expect to pay a lot less as a tenant.
Benefits of Buying a Luxury Apartment
While renting a luxury apartment has plenty of benefits, there are some instances where buying may be in your best interests.
For example, when putting down roots, you may wish to have the emotional security that your home is yours. You can make decisions about how to decorate and remodel if needed.
Another convincing reason to buy an apartment is that renting may cost about the same as paying a mortgage. Your landlord likely charges enough to cover the insurance, taxes, HOA dues, and property management.
So, likely, with what you pay for rent, you can already afford the monthly costs associated with owning a similar property. Plus, you would be building equity and net worth each time you pay your mortgage.
Only You Can Decide Whether to Rent or Buy
After reading this post, you likely know whether you should rent or buy your next apartment. But, if you are still unsure, look at some of the available luxury apartments in North Dallas. Doing so can help you compare renting and buying costs and determine which fits your budget.
If renting is right for you, come check out our luxury apartments in Preston Hollow, which feature top-of-the-line amenities and spacious floor plans!