3 Ways You Save Money By Renting an Apartment
If you’ve ever toyed with the idea of going from being a renter to a homeowner, you’ve probably heard tons of support in favor of the latter. Sure, it’s great to build equity, but home ownership is no cake walk. There are tons of expenses that you’ll only learn about when you come across them.
Not only does renting an apartment get you out of tons of financial obligations that you simply can’t avoid as a homeowner, it also offers you the freedom and independence to switch up your lifestyle and move around a bit.
Still not convinced? Keep reading to learn all about how renting an apartment saves you money.
Save Money on Repairs
As a homeowner, there’s no avoiding costly repairs when they pop up. If you do avoid it, it’ll only grow worse. That means homeowners have to constantly be saving money for incidentals. If the house needs a new roof, it needs a new roof. If mold is found in the ceilings, or the gutters are going, or it needs a new coat of paint.
You get the idea.
As a renter, you can spend the money you worked hard to save on something you want to spend it on, such as travel, a new car, big screen TV, etc. instead of costly home repairs.
One of the best ways to save money as a renter? Rooming with other people. Think of it this way: the more people you can tolerate living with, the less your rent is going to be. There are tons of great resources on the web to find the perfect roommate, too.
Earlier this year, President Trump signed into law the Tax Cuts and Jobs Act. It’s got some major implications when it comes to the rent vs. own debate. Namely: it’s starting to make more sense to rent.
The new law doubled the standard deduction, making it $12,000 for singles and $24,000 for couples. It also limited lots of tax deductions that homeowners frequently took, capping the local and state deduction to $10,000 and limiting the deduction for mortgage interest.
The real coo is that you don’t need to own a home to take some of these deductions anymore. That means you’re paying more to own, and getting the same tax breaks as renters. This is called the “breakeven rent,” and it means that it officially makes more sense to rent than own.
To put this into numbers: the old rule was that if your rent was more than $893 a month, it made more financial sense for you to invest in property. Under the new tax reform, that number has hiked to $1,017.
The median national rent for a one-bedroom apartment just outside the city center is $945. You do the math.
Are You Renting An Apartment?
If you’re looking to downsize from home ownership or simply seeking a change, we can help. Check out our guide to rental applications before you get the process started.
Get in touch to get situated in your new Fort Wayne apartment today!