Should You Rent or Buy?
Most people assume buying a home is inherently superior to renting. This conventional wisdom may not hold water the way we once thought it did. The primary reasons people use to argue for home ownership revolve around the financial advantages it can have over renting. While some of these arguments are credible, they look at the financial question only from the perspective of long term wealth building. Additionally, they don’t take into account the other benefits that apartment renting provides.
If the case for buying instead of renting is not as strong as people think, then what is the case for renting?
Financial Flexibility
When you buy a house, you’re responsible for it for twenty plus years or until you can resell it. Selling a house is a process that can often be very time consuming, with months of preparation before it can even be listed. Then, even after you get an offer, you’re still months from regaining your independence. This puts significant limits on your ability to adapt to life or take advantage of opportunities that arise.
Limited Risk
Your average month to month mortgage might beat the average price of rent; however, even a moderate home repair could wipe out those savings in a day. With apartments, part of the higher monthly payment effectively represents insurance. If a pipe bursts, your property owner is the one who handles the repair and absorbs the potentially high one time cost. Rent stays the same and you lose no money out of pocket.
Location, Location, Location
One of the best arguments for renting in metropolitan Chicago, is metropolitan Chicago. Renting opens the gates to neighborhoods many buyers couldn’t be financed for. This gives renters access to a downtown Chicago living experience they may not have been able to afford otherwise.
Large Supply
As more people enter the rental market, property owners have been quick to follow. As a result, apartment inventories have been growing steadily. This influx of new units has helped stabilize prices and led to a greater amount of choice available to apartment hunters.
The large inventory has also pushed landlords and property management companies to provide first class amenities to entice renters. From gyms and basketball courts to scenic balconies, the perks of apartment life are almost as diverse as the selection of units.
Innovative Property Owners
One of the companies helping fill the demand for high quality downtown apartments is Beal Properties. Operating for over thirty years in and around Chicago, they now own buildings in nearly a dozen of the most in-demand neighborhoods; including the Gold Coast and Wrigleyville.
Beal helps keep costs down by purchasing properties previously sold as condominiums and converting them into rentals. Utilizing existing buildings also helps Beal meet demand without having to tear down older buildings that help add to the charm and unique character of Chicago.
With all the advantages renting can offer, it is time to seriously consider reversing the old wisdom about renting versus buying.