A growing number of people are stating a preference to stay as renters rather than become property owners. The reasons they cite are various but all have a common denominator. It all seems to boil down to convenience as well as money. As a result, apartment builders in the U.S, are taking advantage of this trend.
Renting May Be the Cost Effective Option
There are a great number of reasons why taking full advantage of a build to rent community in Arizona may be the most cost effective option. There are a growing number of people who are missing out on the tax advantages that owning a home used to offer. This is a problem that is becoming increasingly clear due to changes in the way that properties are being taxed. As a result, renting becomes much more attractive.
The advantages that renting offers can include a great deal of flexibility that simply isn’t available when owning a home. Since the tax advantages are no longer there to sweeten the deal, there remains little reason to stay rooted in one particular property. This makes renting an apartment the practical option.
Renting is Better for a Short Term Stay
As noted above, if you have no real incentive to stay in one place, it makes little sense to want to own a property. This is all the more true if you are a student or a member of the armed forces. Even though you may be living in an area for a few years, you don’t plan on spending the rest of your days there.
This makes it a much more practical affair to rent rather than own. You don’t want to be tied down with a mortgage and other expenses if you aren’t going to live there forever. Even the appeal of building up equity has little appeal if it isn’t transferable. For this reason, renting makes better economic sense.
Renting is an Easier Arrangement to Make
Renting an apartment is a lot easier than going through all of the legal and financial motions that are necessary to buy a home. The credit check is usually less exacting and the arrangement of renting itself is far more cost effective. You aren’t tied down to a long mortgage with a potentially high interest payment. It’s an arrangement with no strings attached.
This is a major part of the appeal of renting a property. You sign on for a lease that covers a certain period. At the end, you are free to renew the lease or simply move on. There are no closing costs or other surprises to deal with. Renting is a cut and dry transaction with a very clear start and end date.
You Don’t Have to Make a Down Payment
Another major source of appeal for renting is the fact that you won’t always be expected to make a minimum down payment. In most cases, you will be required to make a security payment that is equal to one month’s rent. But you won’t be asked to put down 20% of the value of the property as you would with a house.
Renter’s Insurance Makes Renting a Safer Experience
One of the best arguments against renting in the past was the fact that you couldn’t take advantage of any insurance policy for your valuables. This is no longer the case. You can now take out a full policy of renter’s insurance. As a result, you now have a substantial level of protection against damage and theft.
Many people also find that the expense of renting is less than they would be held accountable for if they were paying a long term mortgage. For example, rates for renter’s insurance are adjusted to be lower than for home owners.
Renting Can Be a Long Term Solution
The millennial generation has altered the terms of owning and renting in many ways. For many members of this generation, as well as their successors, renting no longer carries any kind of social stigma. For them, the act of renting is a lifestyle choice. In today’s market, this signals a change in real estate focus.