If people aren’t ready to buy a home just yet, they usually think that they’re stuck renting an apartment until they feel prepared. Surprisingly, that’s not the case, and continuing to rent an apartment might actually be a bad idea. Here are some reasons why renting-to-own a home might be more financially beneficial than renting your current apartment.
It Could Be Cheaper
In big cities like Chicago, New York City, and Miami, rent prices are incredibly competitive. You’ll most likely end up paying an arm and a leg for a simple one or two bedroom apartment. In places like those, it might be smart to work on renting a house with the intention to own instead of blinding throwing money away on an apartment. Not only will you probably have a lower payment for a house, but you’ll also be working towards a real estate investment, which you most likely won’t get with an apartment lease.
You Can Save for a House and Rent a Living Space Simultaneously
Many people start to save for a downpayment on a house while still living in an apartment. In reality, that’s not always the best way to do it. Renting-to-own a home allows you to pay your monthly rent and set aside money for a future downpayment at the same time. This helps you save up money to buy your dream home faster than if you were still just living in an apartment. Plus, you’ll get to move into the house much sooner.
You Will Get More Space
Chances are, your current apartment isn’t all that large, and yet you’re still paying over a thousand bucks for it each month. Look into rent-to-own homes to see if you could be paying the same amount for a much more impressive setup. Wouldn’t you rather shell out money for a home with multiple rooms and a yard each month than a simple 750 square foot apartment?