Moving to a big city is a dream for a lot of people, but unless you have been saving up for a long time, buying property in such an area might be just that: a dream. In other words, not reality. That doesn’t mean you don’t still have options, however. For many, renting is not just an acceptable alternative; it is the outright better choice. Here’s why.
Renting is Cheaper in the City
The debate over who has it better, renters or buyers, is an old and nuanced one. When it comes to living in a big city, though, the edge arguably goes to renters for sheer affordability. Looking at the difference between New York, Boston, and Atlanta houses for sale versus rent costs in those same cities, the advantage of renting is plain to see.
Why is this the case? In part, it is a simple matter of supply and demand. Cities tend to pack a lot of people into a relatively small amount of space. That makes owning a sizable chunk of that land prohibitively expensive. While owned properties take up more space, and thus command higher prices, rental properties tend to be smaller, which automatically makes them cheaper.
Add to that the fact that renters save money by not paying property taxes nor having to worry about maintenance and repairs, and it is not hard to see why renting is the more popular option in cities.
Renting Doesn’t Tie You Down
One of the biggest differences between rental properties and owned properties is the kind of people that are attracted to them. Rental properties tend to appeal not just to people with tighter budgets, but also younger people who are experimental and upwardly mobile. By contrast, owned properties tend to be preferred by people who want to settle down and start a business or family.
What’s the reason for this? Well, a major one is that owned properties require a significant commitment of time and resources; you have to be willing to stay in one place for a long, long time. Rental properties, on the other hand, are perfect for people who are fresh out of school or who are actively pursuing ambitious creative and career goals.
In other words, if you are likely to find yourself changing jobs, incomes, or even hometowns, renting means there is nothing tying you down to one place. You can up and leave just about anytime.
Renting Makes It Easy to Share
Piggybacking onto not one but two points made above, it is worth reiterating that owned properties are chiefly for A. people who can afford them, and B. people who live with a spouse or other family members. But what about people who struggle with being able to pay for a home on their own? What about people who are essentially by themselves?
One of the best ways to save money on any property is to split the cost with someone else. If you’re not married or raising a family, however, your options can be limited. That’s where roommates come in. Instead of family members, these are often friends, co-workers, school peers, or even relative strangers.
Why couldn’t a pair of “roommates” split the costs of an owned property just as easily as a rental property? It is complicated, but a big part of it has to do with how land deeds, mortgage agreements, and equity are legally the right and responsibility of a single person. Rental properties don not have this problem.
Hope you like the above mentioned information which help you to consider renting in the city before buying!