Owning a home is a big responsibility and investment -- one not everyone can or should take on. And renters are often told they're "throwing money away" -- but are they really? Here's a look at reasons that those renting apartments in Charleston, SC may be better than buying.
1. You Get More Perks and Fewer Worries
Most homes don't come with a gym, a swimming pool, a clubhouse, a roof deck and a maintenance person. Rental properties are getting nicer and nicer, and they offer the kind of perks that you just don't get when you buy a home.
2. Houses Are Illiquid Assets, with No Guaranteed Profit
While it's likely you'll make money from homeownership, you can't predict market volatility.
Homes aren't an investment you can ever be certain about -- there's always an element of gambling. Although time generally "heals all wounds" in terms of market volatility, if you don't have 20 years to wait around, renting is often the safer option.
3. You Can Be as Mobile and Flexible
If there's one thing we know about millennials, it's that they value flexibility. Younger people value happiness in their jobs more than they value job security, so they're not afraid to pick up and move. They say, 'Sure, I live in New York, but I just got a great job offer in San Fran. I'm moving!' They're portable.
If you own, it can take several months -- sometimes years -- to sell a home. Millennials know this. They say, 'Why do I want to tie myself to an expensive investment that prevents me from taking advantage of the opportunities that come my way?'
People who plan to buy a home should be committed to an area for at least five years to break even on their investment. To make a profit, you need to be committed to an area for at least 10 years, and that can seem like an eternity for a mobile generation.
4. Closing Costs? Two Mortgages? That's Throwing Money Away
Renters aren't throwing money away every month, but buyers might be. You can throw more money away if you buy a home that's a [bigger] mistake than you ever could on renting. When you get ready to sell, if you have not recouped the money you put into the house and then you have closing costs, brokers fees, it can cost you tens of thousands of dollars.
Also, homeowners who need to move unexpectedly may find themselves faced with paying two mortgages or a mortgage and rent.
5. You Have a Ready-Made Sense of Community
Many apartment communities provide instant community and neighborhood connections. From community bulletin boards to weekly yoga classes or once-a-month potluck dinners, today's apartment buildings offer much more than just a roof over your head.
As soon as you step out of your door you're going to see someone you know and have someone to chat with while you walk the dog. On the weekends, instead of mowing your lawn and coming back inside your house, you can hang out at the pool with friends. It's a no-brainer.