Home Ownership vs. Apartment Renting: Which is Best for Young Couples?
Every young couple dreams of living together under the same roof and moving their relationship forward with their other half, which is a big step for young professionals and an excellent investment.
However, young couples still have second thoughts about whether they should rent an apartment or get a house. It’s understandable; either of the two is a considerable investment. To know which option is the best for young couples, let’s start by defining and comparing Home Ownership and Apartment Renting.
What is the difference between Home Ownership and Apartment Renting?
Homeownership is the process or the fact of owning a house. Buying a is a considerable investment; the mortgage, property taxes, utilities, and even the maintenance cost for your property cost much money, not to mention the hidden fees.
There is various way to pay for your house; you can pay for it in a single payment, monthly with a 20% down payment, or apply for a house loan with an interest fee through a bank or a private lender. So, it is best to do research first on which house to buy that realistically best fits your needs and bank account.
While apartment renting, based on its name, is renting a place, whether a studio, condo, or house, for an agreed-upon fee with a legal arrangement with the owner or landlord. The rent fee is usually paid monthly, similar to a homeowner’s. The monthly rent fee depends on the size of the apartment and the location. The bigger the apartment is, the bigger the monthly fee.
The difference between the two is that with home ownership, the place will be under your property. Even if you bought it through a loan, it is still yours as long as you can pay the mortgage on time monthly.
However, in renting an apartment, you only have to pay the monthly rental fee as long as you reside there. Unlike in home ownership, as long as you are still not fully paid for the property, you will continue to pay the monthly mortgage to the bank no matter what. A mortgage typically takes around 15 to 30 years, depending on your down payment percentage, monthly fee, and the overall cost of the house.
Which is the better option for young couples?
For young couples, there are still some factors to consider before deciding whether to buy a house or find apartments for rent. These factors include the following:
Finances
The first and most important factor is evaluating your finances with your partner. Calculate whether or not your combined salary is enough to buy your dream house. Although real estate is a significant investment to achieve at a very young age, you also have to consider if you have enough resources to fund the house and if you are delighted with it. If not, renting a large apartment is also an excellent option for young couples before buying a home.
Preferences
Have a long, meaningful talk with your partner when deciding on a vast investment similar to this. Choose whether it’s the best idea to buy a house or rent for a while to save money for a permanent home.
Long-Term Planning
As mentioned before, home ownership is a commitment. You need to have a clear vision of what you want your future to be like with your partner. Do you see yourselves traveling together or living in your preferred town and growing your love there? Don’t rush yourselves. Plan as long as you need so you don’t regret your choices.
