Owning your own home has many advantages. You’re establishing roots in your community while you’re building equity.
A home is often considered a long-term investment, as many homeowners stay in their residence for an average of ten years.
It’s also viewed as a status symbol or a reward for years of hard work and dedication towards an important life goal.
However, there may be times when owning your home is no longer feasible. When being a homeowner isn’t in your best interest, it’s time to think about renting an apartment.
You’ll still have a comfortable place to live with enough space for all of your most cherished personal possessions.
Here are some of the main reasons why people decide to rent an apartment after owning a home for several years:
You can’t afford to own a house anymore.
Owning a home is a major expense for most people. They may spend months or even years of carefully saving enough money for a down payment, monthly mortgage payments, utilities, and other associated costs and fees.
These costs should be factored into homeowners’ budgets. Repair and renovation costs should also be included.
The average homeowner typically pays around $2,000 or more annually for repairs, maintenance, and renovations of their home.
Renters can usually afford to be a bit more flexible. All you really need to save for is your first and last month’s rent and any other payments or fees that the renter requires.
Your average monthly income should be at least three times what your monthly rent payment will be.
You need to downsize your life.
Sometimes it’s time to downsize. There are many reasons why people do this. They might be going through a breakup and need a new place to live in a hurry.
Some people may be ready to retire or might not be able to take care of themselves as well as they used to. Others may feel like they need to reduce clutter or make a major change in their life.
Even though you’ll probably have much less space in an apartment than in a home, you’ll also have a lot more freedom.
You’re not’ locked into a mortgage or other long-term commitment. Most rental agreements are only for a year or two unless you decide to extend your lease.
You can move to another area any time you want once your lease is up.
Home ownership is more than you can handle.
Owning a home also means that you’re responsible for all repairs and renovations. Replacing appliances, fixing leaky faucets and lawn and garden maintenance are just some of the many things that homeowners should prepare for.
While many people enjoy these tasks, over time these responsibilities can be overwhelming to some.
When you’re renting an apartment, the landlord or property management company is usually responsible for most of these tasks.
You don’t have to bear the financial burden when an appliance breaks down or the outside of your building needs maintenance.
Make sure to read your rental agreement so that you fully understand what is covered and what you will be responsible for.
You’ve had a major life change.
Besides retirement or breakups, there are other significant life events that may necessitate selling your home and renting an apartment.
People may need to relocate for their job or to be closer to family or friends. They may have lost a spouse or gotten out of a relationship.
Sometimes people decide to rent when they retire because they don’t want all of the responsibilities that they had when they were homeowners.
Renting an apartment is a good idea if you need a new place in a hurry. Shop around once you have a general idea of where you want to live.
Start a checklist of all the amenities you want, so that you can find the right place that’s well within your budget.
Market values have fallen.
Owning a home is usually considered to be a good investment when home values are up. The longer that home values increase, the better your decision to buy property will look.
On the other hand, it might be time to sell if you’ve noticed that home values in your area have been continuing to decrease over a certain period of time.
One of the advantages of renting an apartment is that you don’t have to worry about market values.
The only impact you should see is either an increase or a decrease in your monthly rent payment.
Your landlord or property management company should be on top of market fluctuations and communicate any changes with their tenants in writing.
Discuss your intentions with your insurance agent. They should have a convenient renters’ insurance package available for you once you’ve sold your home.
Some insurance agencies even offer a discount if you have multiple policies with the same office or company.
Conclusion:
The decision to sell your home and start renting an apartment won’t be easy. Take as much time as you need to determine when you need to take action.
When you are ready to put your home up for sale, consult with your realtor so that they know your intentions.
They may be able to provide you with leads for apartment buildings that may meet your needs.
Schedule appointments at properties you’re interested in living at so that you understand what you’re getting into and so that you can be assured that the apartment complex you’re considering is safe.
Once you’ve found the ideal apartment, schedule a meeting and review the contract carefully before signing it.
You’ll soon be ready to move in before you know it, and start a new, less stressful chapter of your life.