Renting vs. Owning: Apartment vs. Condo/Townhouse
Starting off the debate over renting vs. owning, the focus will be on the single audience. Here, the targets are not romantically involved in any serious relationship and they are more focused on their careers.
Starting off the debate over renting vs. owning, the focus will be on the single audience. Here, the targets are not romantically involved in any serious relationship and they are more focused on their careers. In the America we are currently living in there is a significant portion of them with children; however, for the sake of this argument, let’s assume that they either have no children or are single parents. We do not want to over complicate the conversation by adding too many variables. So for this conversation we want to ignore the cost and benefits of established families and focus on the single demographic.
These people are more likely to live in or near urban or downtown areas. There are more job opportunities around to help them grow their career, and there are more people to meet and many more places that encourage socializing.
Benefits of Renting
In this detailed example, which is the better option when it comes to renting vs. owning? The financial decision is not just based on the real estate but also the risk of using their liquid assets. The chances of them having hard assets to protect them should something happen with their job is slim to none. With that being said, most people in this category choose to rent. They also have the added benefit of being more flexible with their living situation. For example, should their employer request that they relocate, or they find a better opportunity elsewhere, the process of relocating will not be as troublesome as if they owned.
Benefits of Owning
On the other hand, should the same situation occur with an owner, they would be in a better position to move. Of course the hassle of moving is increased by the need to sell; however, they now have a hard asset to assist them financially, as well as the option to rent their current residence and collect an additional income during their transition. Their ownership brings with it equity, which, in turn, gives them the option to cash-out or cash-in should they meet with their life change.
Furthermore, the tax codes in this country favor homeowners. They would most likely already be benefiting from the larger tax breaks and credits. In addition, should they qualify for any relocation assistance from the local government, they would be more likely to receive it.
In conclusion, renting would more likely benefit the person just recently liberated from their parents’ house. They would be experiencing life on their own and not really sure where or what they enjoy. However, for any single person who has figured out life to the extent that they have a good grasp on their five-year plan, I would recommend owning.