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What are the main advantages and disadvantages of renting an apartment condo vs owning...

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healthy2121 | College Teacher | (Level 1) Adjunct Educator

Posted August 29, 2012 at 5:32 PM via web

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What are the main advantages and disadvantages of renting an apartment condo vs owning a condo, townhouse or detached home? Tks!

What are the main advantages and disadvantages of renting an apartment condo vs owning a condo, townhouse or detached home? Tks!

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portd | (Level 3) Associate Educator

Posted August 29, 2012 at 6:52 PM (Answer #2)

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One main advantage of owning a condo, townhouse, or detached home is the ethereal notion of pride of ownership. Owning the abode you live in comes with a  certain sense of accomplishment - you planned, worked towards, and achieved a goal in life. Another advantage to ownership is the building of equity - you will have an asset to show, wholly-owned by you, when all your payments are complete.

One disadvantage of renting an apartment/condo is that you are paying money each month to use the living space, but will have no tangible asset to show for all this money spent. Another disadvantage of renting are the limits placed on the amount of remodeling you can do to the structure - inside or out. You may want to change the look and design of your living space, but condo/apartment rules may forbid certain work, and therefore your vision for your living space will not be realized.

Condominiums and Cooperatives

 

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bullgatortail | High School Teacher | (Level 1) Distinguished Educator

Posted August 29, 2012 at 7:19 PM (Answer #3)

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The above post's comments are excellent, but some people are not always ready to settle down and purchase a home--be it condo or detached home. An advantage of renting is that it is only temporary--perfect for college students who may want to move out after nine months or a year. When renting, it is the owner's obligation to take care of problems such as appliance repairs, leaking roofs and new carpeting--not the renter's.

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stolperia | (Level 1) Educator Emeritus

Posted August 29, 2012 at 11:33 PM (Answer #4)

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Renting an apartment or condo does not require the substantial down payment that is required when purchasing a place to live. The deposits needed to move into an apartment may seem like a lot of money but are paltry compared to the immediate outflow of money represented by a down payment. http://en.wikipedia.org/wiki/Down_payment

On the other hand, leaving a rented space simply means moving out, with only a possible refund of initial deposit. If you succeed in selling a property that you have owned, you may acquire the financing necessary for a different abode, medical treatments in cases of health issues, a once-in-a-lifetime vacation, or some other splurge that would have been out of reach without the infusion of cash.

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Lorraine Caplan | College Teacher | (Level 2) Senior Educator

Posted August 30, 2012 at 9:03 PM (Answer #5)

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Presently, the United States Tax Code has significant advantages for owners as opposed to renters.  Mortgage interest is tax deductible, as are property taxes.  Of course, there is discussion now, in this presidential campaign, about reforming the tax code, but no one is very clear on whether or not these particular deductions might be eliminated.  Most other advantages have been mentioned already.

One advantage to condo rental is to try out a neighborhood and see if you like it.  People sometimes purchase property in areas that turn out to be incompatible or undesirable, and then it's far more difficult to extricate themselves from ownership than from a lease.  Similarly, condo buildings tend to foster fairly close connections, a kind of "neighborhood," really, so trying on the condo neighborhood before purchasing is a good idea, too. 

 

 

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mwestwood | College Teacher | (Level 3) Distinguished Educator

Posted August 31, 2012 at 2:40 AM (Answer #6)

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Ownership of property is not only a tax advantage, it is an investment, although presently in the United States many have found their investments to have been disadvantageous in this greatly depressed economic time.  Nevertheless, owning a home often affords a person better neighbors as they, too, having made investments in their homes, wish to maintain a peaceful neighborhood.  Of course, ownership of a condominium places a person in an environment with people of similar economic situations.  An advantage to condo living as opposed to living in a house is that the owner does not have to spend time maintaining the lawn and outdoor environment of the building.  Either way, home ownership provides a person with viable collateral for other investments and financial stability as the mortgage is usually fixed whereas rent can be raised.  In addition, in one's own home, a person need not worry what the people in the next apartment might hear, so there is a particular freedom to ownership. And, in this tattle-tale society of cell phone videos and recordings, having an environment in which one can speak without restraint is extremely important to a person's psychological health.

However, there are certain situations better suited to renting.  For instance, if a person has a job in which he/she may easily be transferred, it is probably not wise nowadays to purchase a house since selling the home incurs many worries. Or, for elderly people, renting relieves them and their families of any real estate burdens, financial or maintenance.

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healthy2121 | College Teacher | (Level 1) Adjunct Educator

Posted September 1, 2012 at 1:30 AM (Answer #7)

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One main advantage of owning a condo, townhouse, or detached home is the ethereal notion of pride of ownership. Owning the abode you live in comes with a  certain sense of accomplishment - you planned, worked towards, and achieved a goal in life. Another advantage to ownership is the building of equity - you will have an asset to show, wholly-owned by you, when all your payments are complete.

One disadvantage of renting an apartment/condo is that you are paying money each month to use the living space, but will have no tangible asset to show for all this money spent. Another disadvantage of renting are the limits placed on the amount of remodeling you can do to the structure - inside or out. You may want to change the look and design of your living space, but condo/apartment rules may forbid certain work, and therefore your vision for your living space will not be realized.

Condominiums and Cooperatives

 

 

I agree...Thanks for the insights!

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healthy2121 | College Teacher | (Level 1) Adjunct Educator

Posted September 1, 2012 at 1:34 AM (Answer #8)

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The above post's comments are excellent, but some people are not always ready to settle down and purchase a home--be it condo or detached home. An advantage of renting is that it is only temporary--perfect for college students who may want to move out after nine months or a year. When renting, it is the owner's obligation to take care of problems such as appliance repairs, leaking roofs and new carpeting--not the renter's.

Very True! unless the landlord is irresponsible, then one has to live with that. For students, recent grads, or those actually looking to buy something. It is one way to put away some money. Thanks!

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healthy2121 | College Teacher | (Level 1) Adjunct Educator

Posted September 1, 2012 at 1:38 AM (Answer #9)

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Ownership of property is not only a tax advantage, it is an investment, although presently in the United States many have found their investments to have been disadvantageous in this greatly depressed economic time.  Nevertheless, owning a home often affords a person better neighbors as they, too, having made investments in their homes, wish to maintain a peaceful neighborhood.  Of course, ownership of a condominium places a person in an environment with people of similar economic situations.  An advantage to condo living as opposed to living in a house is that the owner does not have to spend time maintaining the lawn and outdoor environment of the building.  Either way, home ownership provides a person with viable collateral for other investments and financial stability as the mortgage is usually fixed whereas rent can be raised.  In addition, in one's own home, a person need not worry what the people in the next apartment might hear, so there is a particular freedom to ownership. And, in this tattle-tale society of cell phone videos and recordings, having an environment in which one can speak without restraint is extremely important to a person's psychological health.

However, there are certain situations better suited to renting.  For instance, if a person has a job in which he/she may easily be transferred, it is probably not wise nowadays to purchase a house since selling the home incurs many worries. Or, for elderly people, renting relieves them and their families of any real estate burdens, financial or maintenance.

I love these forums...

You wrote"....However, there are certain situations better suited to renting. For instance, if a person has a job in which he/she may easily be transferred, it is probably not wise nowadays to purchase a house since selling the home incurs many worries. Or, for elderly people, renting relieves them and their families of any real estate burdens, financial or maintenance.."..

Great point, as that happens more and more these days. Some people even those with families have no choice but to take jobs away from home-even in other parts of the world. Thanks

 

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brettd | High School Teacher | (Level 2) Educator Emeritus

Posted September 1, 2012 at 8:47 PM (Answer #10)

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Renting allows you much more freedom and, in this economy, certain advantages to keep in mind.  Condo rentals would include lawn upkeep, and maintenance and repair inside the unit itself.  This saves time, money, headache and worry.  While you are not building equity in the property as you would be if you owned it, the housing market is still in the tank in many places, and it may be better to wait a while before investing in real estate.  Were you to want to move or buy a larger property later, it may take many months for your unit to sell.  I know several friends of mine have been stuck making payments on an old property and their new one at the same time.  Condos typically appeal to those who are young and those who are retired, so families are taken out of the market for them altogether, sometimes making them more difficult to sell.

Renting allows you to be flexible, move on short notice (subject to lease agreements, of course), and leave for long trips without a lot of prior planning.  Rentals are also less likely to have dues to a condo association or, at least, that would be part of your rent payment already.

Forbes Housing Report

 

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