From Home Owner to Apartment Renter –Why Many Have Made the Switch

For many renters, buying a home is the goal. But given the down spiral of the economy (and many upside down mortgages), more and more home owners are opting to rent. Here are some reasons why home owners have gladly ditched their white picket fence and moved into an apartment home.

Is home ownership overrated?

Houses will always appreciate in value over the long run. At least, that is what we have been told for many years. In general, real estate is considered a solid, responsible asset. But, for who?

Today, many people simply feel that real estate is an overrated investment –especially if you have little equity in your home to begin with. Why kill yourself paying mortgage in an overinflated market when you could be putting money toward other kinds of investments and savings? After all, there are many ways to invest money and acquire assets other than real estate.

Chris Miles a financial consultant from fireyourfinancialadvisor.com says: “I saw people renting similar homes in my neighborhood for half the payment. I realized that I would be better off keeping that money in my control rather than paying it into a depreciating asset. No matter how you run the numbers, having a mortgage payment twice as much as a rent payment is hard to justify.”

Sometimes, having free time is simply more valuable than owning a house.

Trees need to be removed, the garage door is busted, the toilet won’t flush, and you have no idea when the last time the septic tank was pumped. Ah, the joys of home ownership. Not only will these annoyances eat away at your budget, but they can eat way your time too. For many homeowners, weekends are filled with trips to Lowes and Home Depot. Yard work can easily fill half a day –that’s a quarter of your precious weekend time!

Sandy Klocinski has been a home owner for over 11 years. Her house has been on the market since January 2009. “If we are ever able to sell our house, we will move to an apartment. We no longer want the responsibility of home maintenance and prefer to have the cash available rather than tied up in real estate”, she says.

Kathy Huntington originally sold her house in 2006 to try out a new neighborhood. She continues to rent today because she says she feels a sense of liberation from the duties of home maintenance. “It is amazingly freeing not to have a “honey do” list and actually spend time with my family on the weekends” says Hunter, who likes the fact that if something goes wrong in her rental she just calls the landlord who fixes it for free.

Many home owners switch to renting to improve their quality of life.

Giving up cars for an apartment in a more pedestrian-friendly location, or living in an area where you would normally not be able to afford to purchase a house are other reasons people choose to rent.

Jiang Nan sold his bungalow house in a Shanghai suburb and moved into a three bedroom apartment in Lujiazhui, right across the street from his daughter’s new school. Living in the city center, he and his family enjoy public transportation and don’t miss the traffic jams of their suburban commute around Shanghai. Jiang Nan says; “We have been living happily in this rented property for two years and plan on renting for a few more years. We recently sold the bungalow and plan on investing the proceeds, but probably not a house.” “…I can think of a number of ways to put that 3.5M to better use”, Nan adds.

Michael Shouldice had to leave his lake house because of his job. “…my job moved to the city and I moved with it. Rather than buying a house in the ‘burbs and having to drive to work I decided to rent a loft downtown and walk to work. It was a fantastic year…” says Michael. Today, Michael is married and owns a condo. He reflects on the year he spent as an apartment renter; “It is amazing how much more money is in your jeans when you rent compared to own that’s for sure. Walking to work saves a ton of money too. Not that I was doing it to save money but I played a lot more golf last year than this year,” he says.

Perhaps owning a home is just a bad investment for people in these tough economic times. Or, maybe people just decide that their time is more valuable to them than dealing with the hassle of home maintenance. Whatever the reason, renting an apartment may make more sense for many people.

AUTHOR INFO

April Lentini and her husband have spent a lot of time at Home Depot and Lowes since moving in their first house over three years ago. They are currently in denial that they will soon need a new roof. April writes for https://San-antonio.apartmentguide.com