Recently, an article on Yahoo.com listed five reasons why renting beats buying a home. In his article, writer Jack Hough argued that renting a cheap apartment makes more financial sense for most people. As a realtor I don't completely disagree because homeownership may not be for everyone; however, I find that most people value homeownership for quality-of-life reasons. So here are my five reasons why buying a place might still be worth the price.
1. Less Crowded. Most of the cheaper apartment buildings in my area are also the most crowded in town. Some of them resemble giant, modern, beehives. Yes, the rent is cheaper at these places , but the latest crime statistics show this area attracts police attention like OctoMom appeals to news reporters.
2. Noise. Cheap apartments tend to be noisy places. Ever see a guy banging a broomstick on his ceiling to let his upstairs neighbor know that he is making too much noise? Common complaints include TVs blaring through paper-thin walls, newborn babies screaming, somebody vacuuming at 3:00 a.m. after having loud, passionate sex, or all of the above at the same time. The frugal apartment renter generally experiences more noise in a week than a homeowner will in a month...or maybe a year!
3. Pride. The tougher the economy, the less inclined some people are to keep up outward appearances. This happens in both houses and apartments -- it's just that homeowners have backyards to toss their bags of recycled cans and bottles. Whereas tenants tend to park their sweet-smelling recycled goods by the front door or in a shopping cart by their front door.
4. Freedom. The other night I visited a friend who lives in a nice apartment. Suddenly, there was a loud knock on his door. It was the apartment manager who complained that a car had been parked in the wrong space earlier that day. Nevermind that this car belonged to my friend's handicapped mother and there are no handicapped parking spaces; my friend lives in a complex where a strict set of rules are imposed by a Nazi-like apartment manager. He alone determines what the occupants and their guests can and cannot do. Most homeowners don't have these same worries which leads to Reason #5.
5.No 3-Day Notice. If a tenant fails to pay the rent, or breaks a rule an apartment manager can file a 3-day notice to Pay Rent or Quit (Move Out). Whereas late-paying Homeowners will NEVER receive a 3 day notice. In the state of California, a tenant eviction takes between 30 to 90 days and during this time, a tenant may be able to cure the deficiency by making up his back payments, that is, if the gracious landlord agrees to accept them. If the landlord declines, then an officer of the law will be there to escort the tenant off the premises. In the event of a foreclosure, however, the maximum time to remove a non-paying homeowner is a little over six months. Plenty of time to collect money or wait for a bail out. Additionally, if a homeowner reinstates the loan the lender will always gratefully accept the late payments.
Renting an apartment (or guest house) may seem financially prudent. Yes, there are kindly landlords who do offer cheap rent who don't meddle with tenants and even landlords not interested in bumping the rent anytime soon. But safe, quiet and inexpensive apartment buildings are not that easy to find any more. In my experience, any monetary gains from receiving cheap rent are usually quickly offset with an unhappy feeling of having to live in a noisy, semi-dangerous, over-crowded beehive filled with inconsiderate idiots.
Why do most people bite the financial bullet and pay through their teeth for homeownership? Sometimes the dollars you save by being frugal is not worth putting up with all the crap of daily apartment living.
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