Is Apartment Living Much Simpler Than Home Ownership?
Posted: January 28th, 2010 | 37 Comments »I was thinking about this a lot the other day when listening to a friend talk about maintenance on his house. Seems like every single week there is something else that needs to be fixed, be replaced, or be added on to. The pipes break; the roof shingles come off, the wood under the porch needs replacing. Does it ever end? How much time and effort is spent just trying to keep the place from falling down? I think it might be way more than I am willing to put in were I to own my own home. Sure, it would be cool to own my own place. And I am sure, like most people, I will at some point. But I am starting to think that renting an apartment is definitely the path towards simple living and not away from it!
The only advantages I see to owning your own home include:
1. You can turn the stereo up loud
2. You can knock down walls
3. You can sell it in 40 years for a profit (hopefully)
4. Tax deductions (However, almost 50% of homeowners can’t even take them)
I get that those are all great reasons to own a house. Of course, you could rent a house instead of an apartment, and then you could eliminate #1 as a reason. 
The reasons for renting an apartment seem much more… sensible:
1. Toilet breaks? Call a guy to fix it – for free
2. No lawn to maintain
3. No property taxes to pay
4. You can move anytime without worrying about selling it
5. You can go on vacation without too much worry about pipes/vandals/etc.
6. No risk in the real estate market
7. Insurance is cheaper
8. Monthly payments are always negotiable
9. Cheaper
10. More free time
Really, the only clear advantage of owning over renting is whatever profit you can make when you sell your house in the future. Other than that, the benefits of renting far outweigh the benefits of owning. By renting, I basically have all my free time (and money) to do whatever I want rather than worrying about maintenance/yard work/appreciation value/spending money on repairmen (or women). What do you think? Is renting an apartment a recipe for a much simpler life than owning your own home is?
Related posts:
- What Simple Living Means To Me Right Now.
- How Many Monthly Bills Are You Committed To?
- Too Busy Getting Ready To Live, But Never Living.
See this is something I’ve been ‘battling’ with for awhile now. My rent is $1500/month OUCH but that’s South FL. I do not like my apt. complex nor my neighbors, they’re extremely loud and just waaaaaaaaay too many obnoxious kids around.
Though, like you said…something goes wrong-call maintenance and yep renters insurance for $30/month is way cheaper than Fl homeowners insurance and no taxes, etc.
But, me personally while the benefits are high for renting I’d love to have a place to have peace, quiet which helps my ’simple’ life..now if I can find a quiet house to rent then that’d be ideal til I can decide when/where to own.
So, yes renting makes it simple (I personally just miss quiet!)
AGREED! As a homeowner now stuck with a huge impending outlay of cash for a roof, I agree 100%. I totally wish I had not bought, but rather stayed renting. Oh well. Live & learn.
I liked living in an apartment, but there were a few downsides:
1. Unless you’re in a situation where you know you’ll be staying put for a long time, painting walls, installing shelves – heck, even hanging pictures! – can be problematic. I’ve never wanted to knock down a wall, but I like to re-shelve my closets for better organization – something I couldn’t easily do in a rental.
2. While big jumps in rent aren’t ordinary, annual increases are normal. You might be able to negotiate a better deal, but that depends on where you live and the nature of the rental market. While tax increases can up your mortgage payment, it has been more stable – at least in my experience.
3. While you don’t have to do your own repairs, you CAN’T do your own repairs. When the front door lock to my rental broke, I had to wait nearly a week before the landlord found a permanent solution to the problem. (Sure, the door to my second floor unit locked. But in my ‘hood, that didn’t feel like enough.) When we had problems with the lock on our door, I fixed it myself – and could’ve called the 24-hour locksmith if it hadn’t worked out as planned.
I wouldn’t call our home maintenance-free, but it is the second one we’ve owned, and we’ve managed to keep it maintenance light. The first one? Not so much. But we learned a lot.
Abby
I’ve done my own repairs in my apt.
Maintenance couldn’t make it as quickly as I wanted to fix backed up sink and I fixed it myself…they don’t care here
We’re allowed to paint, hang whatever, do whatever..just have to paint it back white and putty up holes before moving out.
There’s advantages to both, ultimately when I know where I’d like to settle down I already have a green architect on stand by to design my ideal home..til then I like the freedom of renting.
Renting works for you now, as it did for me at certain stages or phases of my life. But now I want a more rural existence with room for pets and other animals, a large enough garden to feed the family, and the stability of knowing I won’t have to move because a landlord decides to impose a rent increase. But you are correct that we should look at all the true “costs” of ownership vs. renting and make a considered decision. Many people find renting works better for them for a whole host of reasons.
Great post – me and my wife live in a one-bedroom apartment with ancient tile and carpet and an even older furnace. But the rent is $315 a month, so it works for us!
But in the future, what we really want to do is build our own (small) home, with our own lifestyle, simplicity, and aesthetics in mind. Will it complicate things? Yes, of course… but we think the enjoyment of having a place designed to fit our needs will be worth it.
I donno. Guys like JD Roth and Ramit Sethi have written recently about homeownership not being all it’s cracked up to be. Nothing is really all it’s cracked up to be. I tried to provide a counter argument in support of home ownership to Ramit, and some other commenters picked up on it, but he didn’t reply.
I own four homes; three of which are two family homes that I rent out. So I’m a landlord and a homeowner. I also rented for ten years before that. I can tell you that dealing with noisy neighbors in a rental situation sucks. I can also tell you that I’ve been pretty lucky and have never gotten a call at 2am to fix a toilet as a landlord and I’m certainly not spending every weekend doing repairs and upgrades to homes. I would say that each home requires one to two repairs a year. And, for the rentals, that’s a writeoff.
Now, if we’re just talking about a straight up Home Ownership vs Renting situation, there are too many variables to really come to a concrete conclusion on this.
What are the costs of each for the area of the country you’re in?
What are you able to afford?
Did you buy a fixer upper, or a ready-to-move-in home?
Is your rental unit part of a complex? – If so, maintenance might be better than if you rented a house or part of a two family home. However, you have many more annoying neighbors to deal with in a complex.
Renting is throwing money away. Ramit can’t argue otherwise. But in many ways, so is home ownership. So really, I think the only way to solve the question for yourself is to have a great idea of what you want your life to be. Then figure out how housing can support that lifestyle.
Great food for thought in this article, David.
- Charley
I agree with Charley – it’s personal choice, there’s no right or wrong. I like owning my home, because I have more control over my surroundings. I like working on the house, since homes have been part of my life since I was a kid. My mother was an interior decorator, and I always wanted to be an architect. Those things come into play every day in my home.
If I did have to rent again long-term, for whatever reason, here or somewhere else, I would rent a house, not an apartment. A yard gives me the sense of personal space, which I need.
People should write down the pros and cons of each if they need help deciding what’s best for their situation.
I too would prefer to rent an actual home over an apartment, but unfortunately they are pretty expensive in most metropolitan areas – where I live included.
I am not saying home ownership is bad, not at all. But people really need to know what they may be getting into before making the biggest purchase of their life. My grandmother, who turns 98 next month, said to rent forever – after all, you cant take the money with you and who needs the headache?
Owning…. It’s mine and I cannot be evicted. There is room for my garden and I can do what I want with the yard, etc.
I can paint it my happy colors.
Security and peace of mind….. I’m there til I die, hopefully. I sleep soundly at night knowing it’s paid for.
Costs:…Minimal….When I bought the house and repaired it BEFORE moving in, the roof, electric, and plumbing were all done new, as were windows and foundation work. There should be NO major repairs, other than painting for years and years… maybe not til after I die… it’s a 50 yr roof.
It’s paid for… Property taxes and insurance cost me $1140 per year… or roughly $95 per month…. That’s pretty darned cheap monthly housing expense.
My homeowner’s insurance is actually cheaper than renter’s insurance was….
I don’t have to deal with a landlord telling me what to do or not do. And I have personal space, and personal creativity… I can make it totally mine in looks and colors and arrangements. It’s the ONLY way I feel secure and content…. peace of mind
I have been both a renter and a homeowner – have owned several homes – and have been a landlord several times over… For me, the only way that makes financial sense, if you are Permanently in an area, is to own. If you are transient, then by all means rent.
And don’t tell me that the money is all locked into the house and can’t be accessed… with a HELOC, 80% of the value of the house can be accessed at any time with just a call to the bank to move money… not that I want to go into debt again – but it is available if needed.
Actually – I think you would have to be comparing renting an apartment versus buying a condo for some of these arguments to remain true.
Once you get into renting a house, versus an apartment, some of the arguments fall apart.
Like you have to mow your lawn and bring your own appliances and maintain them etc.
But… in all cases – it’s a very personal choice. And your reasons for doing what you do change with your life situation. One is very flexible and transient, the other more permanent and stable – long lived.
I like the feeling that I NEVER have to move again… (unless it’s the dreaded nursing home situation… but I’d just as soon just die in my sleep in my own home) (a long long long time from now)
Age 55, in case you are wondering
That might be part of my reasoning – I move every few years
#6 on your rental list is not entirely accurate. Expect to see more apartment owners default in the next couple of years, or simply let the property go to hell.
Marci
here in FL (least south florida) all houses for rent have all appliances included..I know when I was in PA they didn’t but here houses you rent have EVERYTHING
and I have a reel mower and love doing yard work, just need/want to find a house to rent rather than apt..and I’d ideally like to move out of this area all together in about 4 yrs so renting is best option for me lol til I find the ideal location to build on anyhow
Tara – I was a rental home owner in FL for several years… I did NOT include appliances in my homes. My brother rents out homes in FL now – he does NOT include appliances in his homes either. It was such a mess cleaning out dirty stoves and refers….
These were in Ft Myers, Ft Myers Beach, Inverness, Tice, and Arcadia. Guess it just depends on who you rent from.
Marci
notice I said “south florida” guess I should’ve specified SOUTHEAST Florida…broward county/dade county/palm beach county…all rent w/appliances
Chris Farrell mentions a lot about the benefits of renting in his book The New Frugality. He said it’s one of the biggest real estate myths that “buying is better than renting.”
When my husband and I retire, we plan to sell this house we own and put the money in the bank in low-risk investments (i.e. CDs) to earn interest and then rent.
While I love my house, it is a lot of upkeep and takes away from other experiences I could be having.
We laugh now because when we bought our home, one of the big selling points for us was that it was on a 1/3 of an acre. Oh, how we romanticized that… had someone reminded me that plants never stop growing and all the work we’d have to do, I would have requested a postage stamp yard!
So yes, I agree, we plan to rent an apartment or house in the future. Plus, the freedom of not being tied down to one places seems intriguing to me (having owned homes all my adult life).
Good post! Thanks!
The “joy” of home ownership quickly faded when I realized I could no longer call Edith and have her “fix-it” man come and take care of the problems. I was now Mr. Fix-it…
When we lived in our Townhouse we told our daughter that the “Landlord” would not allow pets…when we bought our home we told our kids, the “Landlord” doesn’t allow pets!
The squirrels & birds are our pets!
LOL Greg to pets!!!
I’m in 3rd floor apt. have a chihuahua as well as a rabbit in a house I built for him that’s 4ft by 2 1/2ft….maintenance guys crack up when they come to mini zoo here…I though would love peace/quiet and a yard…rather than patio garden–in time I’ll find house to rent–then yrs from now decide what to do, but I like ‘freedom’ and renting enables that to a degree.
I must say, I am for owning. A few reasons why:
Also, if I don’t want to mow all my grass, I can always fill my back yard with a huge garden.
1. you can do what you want.
2. you can’t get evicted.
3. you don’t have to pay extra a month just for your pet (my two cats are my kids.)
4. you can get a garage (I hate scraping ice.)
5. you can pay you mortgage OFF (requires some discipline, but I would hate the idea of paying someone else AND uncle sam for the rest of my life.)
These are just a few, but no, it isn’t always wonderful owning. We’ve done nothing but fix up the place… BUT, almost everything has been replaced as we want it to be, so there is a light at the end of the tunnel!
Chandra, I totally get your points…but…
1. I can to, other than tear down a wall.
2. You can if you dont pay the mortgage
3. I dont pay extra for a pet
4. I have my own garage
5. You can pay off your mortgage, of course. For most people though, that’s 30 years from now. I will be 67 at that point and I doubt I will stay in the same place till then
Just saying
There is no right or wrong – this was just from my perspective. Obviously, everyone has a different one, which is great!
People rarely end up paying their mortgage off these days. We are such a mobile society, we almost never spend 30 years in a home anymore. Our needs change, we move.
One benefit to a mortgage is that the interest is a tax deduction. And if your mortgage is less than about 25 years old, that’s a good chunk of change. My interest on a $90,000 mortgage is about $480/month. I could cry as I write that, since I hate banks so much, but it’s a grim reality. The upside is it’s a tax deduction this time of year. So some people like to have a mortgage for that reason, even if they can pay cash for their home. Or, maybe, especially if they can pay cash for their home. lol
Very true…but according to statistics, not even 50% of homeowners actually get to take that deduction because it doesn’t exceed their standard deduction on their taxes. But for those who do, it’s worth it – but I still don’t see it as a reason to buy at all, because while I am getting some taxes back, I still am spending more than I do on rent.
It’s not a reason, just a potential benefit. A lot of my first time buyers have no idea this is a deduction, and their interest expense (size of their mortgage) is a lot more than mine.
I have both rented and owned… there’s a life situation that warrants either situation – and I have been a landlord….
Fairly easy (with discipline) to pay off a mortgage early… and at least you have something to show for it besides rent receipts.
The main secret is to NOT buy a McMansion to start with – to buy something affordable that will meet your needs. And to be frugal with the rest of your money/lifestyle so that it happens for you.
I have never gone 30 yrs on a mortgage…7, 10, 9…and on the dairy farm 14 yrs….This last house I just paid cash for…$40,000 and put another $60 cash into a new roof, new electric, windows, plumbing, and some foundation work. I don’t have to do ANYTHING as far as repairs go for years, if ever…..(except paint, which I do myself) and I got the cash from the sale of the previous house…. all on gross wages in the low $20,000’s per year…. 5 digits is correct…
The median home price in our area is about $250,000…. so I think I came out WAY ahead this way
(but buying a fixer-upper and living in it the first year while fixing it up perfectly is just not for everyone!)
Well, that’s really nice that you do have those things as a renter. Where I live, you can’t even paint walls let alone do anything else (some do not allow you to hang pictures) and almost all charge more per pet, none have garages, etc. But that is a small town in the Midwest for ya I guess, lol. It is a personal preference/choice though, and I don’t regret mine (…yet, lol).
My fav option – for the shorter term … and the here and now is a house with the job.
We have done this a couple of times – including now – and it is so stress free – the house that is … as you are a ‘renter’ who does not have to find the home – the employer does that … plus all the maintenance and upkeep.
The only down side is if you quit the job you loose the house – so be it
Cheers Le
I agree, the myth that renting is throwing your money away and buying is the path to riches is a load of bull. Owning a home is ANYTHING but simple. It’s a HUGE money and time sink. It complicates finances, is a drain on your time, causes stress, etc. I’m not sure that knowing what I do now I would do it again. There is ALWAYS a list of things needing done, luckily I’ve grown better at ignoring them.
On the other hand, I do like being able to paint and decorate like I want, some rental situations may provide for this, but I never wanted to make the investment in someone else’s property before, even if I could have. If I want to change something, anything, I can. If I want to have five cats, a snake and a turtle I can (not that I do but…). Although I have to provide the money and or labor to do so. If something needs fixing, I have to pay for it, but that also means it gets done when and how I want.
Gardening has become a big thing for me, and I probably wouldn’t be able to do what I do on the same scale if I didn’t own my home.
But yes, for strictly financial and simplicity reasons I think renting wins, hands down.
There will always be a difference of opinion on this – depending on where you are in your life. I’m 55 and want to feel settled in and taken care of for retirement….
@min hus – You have good reasons but for me it is just the opposite…. “For strictly financial and simplicity reasons, I think….OWNING my home….. wins, hands down.:…
There is no drain on my time as I took care of that all upfront, there is no monthly drain on my finances nor complications as it’s paid for (NO rent NO moving NO stress about the roof over my head for the next 50 years…..) Living in my own paid for home is about as stressfree as it can get
Mine is debt free and the equity is just as available, thru the HELOC, for emergencies as if the money was in the bank or in investments…probably MORE liquid as one phone call and the money is immediately in my checking account available to use… That’s LIQUID. The money in the house is NOT tied up at all
Maintenance is minimal – sweep the porch, paint every ten years or so, and enjoy the garden and yard which is all in edible landscaping…. I make money and food off that yard
I mow the lawn for exercise with my little electric lawnmower, but if I don’t want to, the neighbor kid does it for $10 
When I bought the place and altered it, I redid everything so I wouldn’t have any problems for the next 40 years… new wiring and plumbing, appliances, fixtures, and windows and roof. There is virtually NOTHING to have to do to this house in my old age except bring in the firewood 
I’m set for life here – in my cozy built just for me home. Love it! Peace of mind, liquid investment, stressfree
Very simple 
Guess it just all depends on how you look at it
For stated reasons, renting is by far the simplest way to go. We’ve owned a few homes, we’ve rented houses and apartments, and we overall agree that owning is the best for us. We don’t own right now, we’re searching for the right place to be (currently OR) but when we do we’ll buy again, probably for the last time. We can do with it what we like, you can garden, you can have a shop to make things in, a garage to keep whatever vehicles you have (even if they are bicycles) and being able to do all that makes us comfortable and happy. It works for us.
For me, renting is more simple just because it’s more flexible. Moving sure is a lot more complicated when you have to worry about being able to sell a house.
If you rent then you are just throwing the rent money away. If you Buy then your putting this money into paying the morgage and the property.
Why not meet half way and BUY an apartment!
We rent and absolutly hate it. we dont have our own backyard, its one we share with the rest of the small complex. So its not like we can have parties or bbqs. We can’t have dogs (which we really want). It took WEEKS for maintenance to fix the leaky bathroom sink and the bathroom outlet which didnt work at all. We cannot work on our cars in the parking lot (not even do do an oil change). The guy upstairs is always thumping around and when he runs the garbage disposale it often scares the crap out of me because it rattles our pipes too. when we do go outside everyone literally pulls back their curtain and watches us. I would love to have a garden but there is no where to do it.
When mortgage payments are cheaper than rent, buying makes sense. I could rent the house I bought for five hundred dollars more a month than I am paying in mortgage payments. That’s $500/mo to save for those annoying expenses – if I wasn’t paying for daycare. !!!
But yes, renting is SIMPLER than home ownership for all the other reasons listed above.
This is the debate that my wife and I are having right now. The main advantage to owning a house is that you can really set it up exactly the way you want it.
While our previous landlord didn’t care about us making changes to our flat, we never did because of the impermanence. I think that renting is, over all, a much better deal if you’re not exacting about your living environment.
While it’s true that you don’t officially pay property tax when living in an appartment, it’s only a hidden fee in your monthly payment because the landlord have to charge more to you to obtain the same return on his investment.
Living in a pretty expensive area, I’ve never bought the idea that owning a home is better than renting. However, I’ve been a homeowner now for almost one year–bought a fixer upper that had already had alot done to it, but still, I’ll have put in about $20,000 in one year, and there’s still a way to go. I haven’t yet delivered my verdict on homeownership. It sure is nice having space and more privacy, but it is hella lot more expensive–not just the mortgage and the $20K improvements, but the utilities and upkeep, and taxes go up every year around here–just like a rent increase. Every time I walk into Home Depot, I drop another $100 on stuff that really doesn’t improve my quality of life, just my house! I’d have a lot more cash if I had kept renting, no doubt about it.