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Renting is a Good Option for Many

03 Oct 2017

Posted by Joseph Coupal

HHHunt ApartmentsGenerations of Americans have considered owning their own home a key aspect of achieving the American Dream. But the lingering aftermath of the housing crash has caused many people to rethink that belief. Many are opting to rent an apartment rather than buy.

Long gone are the days when Americans assumed home ownership could only have a positive impact on their finances, and that renting was equivalent to throwing money away.

Like any debate, the question of renting versus buying has pros and cons on both sides. Buying a house creates the potential to build equity and provides a sense of stability, while renting affords a level of mobility. In many areas of the country, the gap between lease costs and monthly mortgage payments has narrowed, making both options equally affordable.

While the decision to rent or buy will depend on your personal circumstances, when you're considering the question some facts are universal. Among them: What impact might your credit have on your decision to buy or rent, and what impact will either option have on your credit score? How long do you plan on staying in this particular location, do you have job security and how much do you like home repairs and yard-work?

When you're evaluating whether buying a home or continuing to rent makes sense for you, consider all the facts as well as your lifestyle.

For information on renting contact HHHunt.


How to Decide Whether to Rent or Buy Your Home

26 Jul 2017

Posted by Joseph Coupal

HHHunt ApartmentHomeownership is commonly considered a sign of success, but in some cases, it can actually work against your financial goals.

While buying and renting can both be good options under the right circumstances, people underestimate the hassle of owning and the benefits of renting because they are hardwired to do so.

Let's face it: most of us have a deep-rooted feeling that homeownership equals success and buying equals progress. Renting, on the other hand, is often seen as a form of failure—or even "settling." If you can't afford to buy, you just rent because you need a place to live, right?

This line of thinking is dangerous.

Before you commit to buying, it's important to note why you're doing it in the first place. If you're considering a home purchase to appear successful, you're setting yourself up for failure. If you're shopping for a home because you feel like it's a natural next step, you're making a mistake.

The Case for Renting

Renting may not feel like progress, but that doesn't mean it's not the right move for you. The fact is, renting comes with a ton of huge benefits, including:

1. Flexibility. 

Maybe you prefer to move around, seeing new neighborhoods and cities. No matter what, it's hard to put a dollar value on that experience and enjoyment. In addition, if you anticipate a career or job change, renting might suit you better, as buying a home can hinder your flexibility to pick up and move.

2. Avoiding homeownership costs. 

Homeowners are painfully familiar with unforeseen and often hefty costs such as furnishing, decorating, leaky pipes, landscaping, general maintenance—you name it. As a tenant, you enjoy the perks of your home without the worrisome financial burden.

3. Liquidity.

Generally, you can't turn a house into cash overnight. Many people invest their life savings into a home, putting the bulk of their net worth into an illiquid asset. Risk comes with tying up a large portion of your wealth in such an asset. Renting allows you flexibility and other investment options.

4. Building credit. 

As consumers, we need a healthy credit score for pretty much everything we do, from getting a new cell phone plan to buying a car. While renting doesn't boost your credit rating like owning a home might, creating a history of on-time rental payments can, in some cases, help build your credit to qualify for a mortgage down the road. This history begins when (and if) your landlord reports your payment data to credit agencies. Third-party services can help you report this information on your behalf.

For more information on apartments, contact HHHunt.



Millennials Opt to Rent Due to High Cost of Housing

01 Nov 2016

Posted by Joseph Coupal

As the issue of housing continues to be hotly debated, one group in particular has had to compromise in order to find suitable living situations that are also affordable: America’s millennials. According to a new survey of 1,000 Americans aged 18 to 34 a majority of millennials delay or rethink traditional ideas of the “American Dream” of homeownership.

  • 76% of millennials have made compromises in order to find affordable housing. 46% say they live with parents or family; 43% say they have put off saving for the future; 41% say they live with a roommate; while 36% say they have had to move further away from school or work to find something affordable. Thirty percent have said they have put off home ownership entirely.

Millennials, America’s largest generation, already saddled with record-breaking student loan debt, no longer think homeownership is in their future.  This group mirrors much of society, which is also frustrated by the lack of affordable housing and seeking rental options.

  • 69% of millennials are “cost-burdened." Affordable housing is housing for which occupants pay no more than 30% of their income. Those who spend more than that on rent or a mortgage are considered “cost-burdened”, and over 69% of millennials put themselves in that category. Of those who describe themselves as “cost-burdened,” 67% say they are saving for the future purchase of a home; 20% say they are delaying getting married or having children; and 17% are putting off paying for preventative healthcare.
  • Nearly one-third plan to continue renting, and 50% prefer renting to ownership. Sixteen percent said they plan to continue renting. Of the respondents who said they plan to continue renting, 57% said they will continue to do so because the “expenses of home ownership are too great.”

Despite some renters forced to do so by high costs, some respondents prefer renting to ownership. Fifty-one percent said they will continue to rent because of the location of their rental and 31% said that their “mobile professional life” (defined as “frequent moves necessitated by climbing the career ladder”) was more conducive to being a renter.

For more information on apartments, contact HHHunt.


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