Friday, Oct 4, 2013
How You Can Save Money By Renting an Apartment
Are you are faced with money woes and own your own home? It is a natural instinct to want to hold onto your home even if the operational cost is more than you can bear.
However, when you are facing financial challenges, selling your home and re-investing that money into other markets can pay dividends allowing you to easily afford to now just rent.
Real estate home prices are at an all-time high, while rents still remain affordable; making the decision in our opinion financially wise.
Your House as an Investment
Another myth regarding home ownership is that rent is going down the drain while your home is increasing in value. But have you ever stopped to think about the interest you are paying on top of your house payments?
If you bought your house for $300,000 and current housing prices in your area are now $500,000 in theory this sounds like you just made yourself a cool $200,000. However the sad reality is you have paid so much in interest that $200,000 starts to drop quite drastically.
Maintenance and Utilities
Another consideration is all the extras you have to pay when you own your home. Everything that breaks has to be fixed at your expense. Every drop of water you use and ounce of electricity you burn is also adding up everyday and has to be paid at the end of the month.
When you rent, maintenance is free and more often than not so are your utilities. You can save money while renting by an additional $200 or $300 per month on utilities alone.
To save money while renting makes good sense when you are over budget every month and falling further and further into debt. You can pay down debt, put more savings aside for a rainy day and begin to build a nest egg for the down payment on a more reasonable monthly mortgage payment.