…and less hassle, utilities, buying of appliances…
Appliances: what rental house doesn’t come with appliances? That’s an actual question, there may be a lot of them that don’t, but all of the ones my Mom has rented in her life came with an oven and fridge, and sometimes a washer and dryer. A washer and dryer also sometimes come with an apartment but not always.
Utlities: yeah, it is more economical than a house. Even if utilities are included, houses use up more electricity and heating and garbage collection than apartments and someone’s paying for them.
Hassle: ISTM that it depends on the owners of the house since many of them seem to be individual renters rather than management companies. Some of them can be flaky, never answer questions, never make required repairs, but some of them can be great and easy to work with and less hassle than a bureaucratized apartment management company.
Most of the houses I looked at included the major kitchen appliances with the house.
I’m feeling very burned from buying. I was laid off and then unemployed for 3 years. I’m now facing forecluseure, though since I have a job again I have high hopes of not losing my home.
FYI, it turns out that if you lose a job, there is money available to subsidize your rent payments. With a mortgage, you’re out of luck.
If you rent a house, you might have to do yardwork, shovel snow and so forth. Or perhaps the landlord hires someone to do that.
By appliances I mean washer/dryer, dishwasher and refrigerator.
By kitchen appliances, I mean dishwasher, stove and fridge.
Washer/dryer may not come with a unit, but many have them. Pretty much every rental unit will have fridge, stove, dishwasher - it would be pretty hard to rent without those.
It depends where you live.
The average rent for a 1-bedroom apartment in my area can easily equal a mortgage payment. Ergo, for some people rent is basically tossing away your own equity.
Again, in my area, if you have pets (dogs especially), you’ll almost always will have to buy a house because most rentals won’t allow them.
You find cheap houses and expensive apartments, depending on size, location, and amenaties.
I’ve been renting a house for the past three years, after a long time of renting apartments. I love my little house. It’s actually smaller than my previous apartment, and I prefer the layout. I also like having my own yard. It’s a pain to mow, but I can plant a little garden if I want to, and let the cats frolic without worrying about someone’s dog chewing them up (the backyard is fenced in). Plus, the yard maintence is practice in case I ever want to own. Every year I get a little better with it.
There are downsides to apartment living that you don’t find in a detached structure. Guy next door has roaches? So will you. If the lady upstairs floods her kitchen, you’ll know about it sooner or later. I like being able to dance and sing without disturbing anyone. You get more privacy when you don’t live in close proximity to others.
You’re more likely to find a cheaper apartment than a house. But the intangible rewards may make up the difference for you.
I haven’t rented an apartment for 17 years, but I rented five or six different apartments before I bought a house, and none of them had dishwashers. None of the apartments had a washer / dryer in the unit, but most had common laundry rooms in the building.
:smack: I thought you were taking about renting an apartment versus buying a house. One of these days I’m gonna have to learn to read!
I think it depends on where you live. All the apartments I’ve rented (and all the houses I’ve bought) had dishwashers but smaller places in the city may not. Some have had washer/dryers but I think the majority didn’t.
I just happened to rent an apartment after attempting to find a house for rent. Unfortunately, I figured out that there was always a substantial downside to every house in my price range.
One was a gorgeous little 2br cape cod with a kitchen and bathroom remodel worthy of a renovation catalog. Unfortunately the owners thought that a big kitchen island was preferable to floor space, such that there was literally nowhere to fit a kitchen table that could seat more than two people. And it was in the way-far-out 'burbs, right next door to a commercial greenhouse.
Another was a 2br ranch in a decent suburban neighborhood. Its downside? The just-moving-out tenants appeared to have been raising some seriously inbred bulldogs. The inside of the house was in remarkably good condition considering. The yard, on the other hand, was completely trashed. Nothing but dirt and crabgrass. Also, it was heated by propane (the most expensive option in the area) and a pellet stove (cheap, but a pain in the ass).
For about the same price I ended up renting a very nice and spacious 02 br apartment in a great city neighborhood – walk to a dozen restaurants, 10 min bus ride to work, etc. And the apartment is taken care of by a very professional and attentive property manager who installed a dishwasher when I asked nicely.
So at least in my sample of Providence rentals, single family homes seem to cost about 10-20% more than apartments with similar size and amenities.
Let’s see. In 12 years of owning a house with a traditional 30 year mortgage, the principle is now just around what the house might sell for, maybe. The balance was paid down, idk, 15%. The good news is, since we are so far into the loan now some huge chunk like $200/mo actually goes into paying down the mortgage.
The house itself was 7years old when purchased so not quite 20 years old. Has needed (but not necessarily received because I am poor and just can’t drop 4-5 figures on stuff routinely) new roof, all new appliances, new toilets, showers have worn out, some faucets have stopped working, etc, water heater, furnace, AC, floors/carpets/drapes replaced and painted multiple times, windows are pretty broken/outdated, fence falls down at least annually, exterior wood has rotted, driveway cracked, gutters fell off, garage door fell off, random weird electrical stuff, and so on.
Renting has its own hassles, but I don’t buy the whole “throwing away equity” claim. Home equity comes from unpredictable markets and paying down a mortgage over decades. You really are paying for the use- to have some place to live. So in that sense, renting isn’t throwing away money at all.
I remember when I was a teenager, I was hanging out at my friend’s house. His dad was a guy who sold some business and was basically a retired “investor” at the time. He also owned an empty mansion. He was telling us all how we should definitely buy a house as soon as possible because of the great equity, and how in the worst case scenario if we had to sell a house after a couple years we would break even or basically get free rent for a couple years. Of course, he sold the mansion for a $600,000 loss a couple years later.
That’s the other side of the coin 
My BIL/SIL sold their house at a loss a couple of years ago and have since moved into an apartment. They say that overall, it’s cheaper for them in that, even though what they pay in rent roughly equals what their monthly mortgage payment was, they no longer have to worry about taxes, utilities, and upkeep. They sold because BIL, at the time, had lost his job. He’s now making more than he did then, but neither he nor SIL have any desire to own a house anymore.
That’s the gamble of home buying/selling. Around my way people who want to sell spend the down time fixing up their houses so they can price them at the highest the market will demand. Of course this doesn’t mean they’ll get that price – heck, right now, there are maybe a half dozen houses in the neighborhood that have been on the market since the spring and none of them have lowered their prices because nobody wants to sell at what they perceive a huge loss.
I’ve been a renter since '94: apartments until 2001, then townhouses until this summer. Now I rent a small single-family home.
[ul][li]Every place I’ve rented has come with a washer/dryer. You just have to check the listing.[/li]
[li]I’ve never heard of a rental that didn’t come with a refrigerator. That would be quite unusual, at least around here.[/li]
[li]The house I’m currently renting is the first place that didn’t come with a dishwasher. (I’m single, so I don’t mind.)[/ul][/li]As others have mentioned, heating/cooling will almost always be cheaper in an apartment than in a house. It’s all about how much square footage you’re trying to affect. Vertical space counts, too: heating/cooling a 3-level townhouse is a pain in the ass. The house I’m renting now is one level – it’s actually quite similar in size and layout to a 3BR apartment – and I’ve already seen a difference in those monthly bills.
Until it comes time to repaint, or put on a new roof, or the basement gets flooded…and, boom, there goes the difference.
Not an expert on this, but our financial planner told us that real estate investment is considered, “speculative”, and only the very rich should involve themselves in stuff like flipping houses and the landlord life. I think owning a house is a money pit. Of course, there are the emotional advantages of owning your own space: just having nice shelter and putting your own stamp of individuality on a place. Yet, in the end, you still cannot take it with you. Having helped 3 elderly people move, I see how a house becomes a big liability as you age: too expensive to keep up and too physically difficult for those with bad arthritis and heart disease. Nice to have a house if you have kids, and want a yard for them, but I wish we had sold our house 10 yrs ago before the You Know What hit the fan. Luckily, it is paid for, but what difference does that make when the place needs constant maintenance, and we are just barely making it. I am thinking of calling one of those “As Is” buyers just to dump this place. Maybe get a tent or small trailer and just travel. My dream, sigh.
If your fortunes turn south while you’re renting, you can always bail after the lease runs out and move into some cheap dump. Seriously! If your finances lack a certain stability, home ownership may not be for you.