Owning a home is part of the American dream.
Having your own house can seem like the fastest way to attain a higher quality of life and even save on monthly rent.
After all, monthly mortgage payments are slightly cheaper than rental rates in some states. But when you do the math, it’s often cheaper to find affordable apartments in Charles County, MD compared to the cost of buying your own home.
Based on the belief that renting truly is more affordable than purchasing their own home, many people choose to stay renters longer than ever before.
Let’s learn about why choosing to rent has become a key decision in financial plans around the country.
No Unexpected Maintenance Costs
Unlike renters, homeowners are responsible for all their own maintenance and repair costs. This includes everything from structural repairs to lawn maintenance, both of which are more expensive than you would expect.
Take a look at the average costs of some of the most common DIY repair jobs below.
New Roofs: $11,000+
Windows: $400 – $500
Hot Water Heaters: $500 – $800
New Flooring: $2,000 – $4,000
New Appliances: $400-$600
Siding (for a full home): $3,000-$6,000
Most homeowners are encouraged to save the equivalent of 1% of their home’s total value each year for maintenance and repairs. For a $200,000 home, that’s about $2,000 per year for repairs.
Property Taxes and Homeowner’s Insurance
In addition to paying for mortgage, homeowners must pay for home insurance and property taxes.
In Maryland, the average annual property tax amount is $2,900 per household. The annual homeowner’s insurance is about $1,000.
Pay a Deposit, not a Down Payment
The biggest difference between buying a home and renting an apartment is in the up-front costs of move-in.
When you purchase a home, a down payment is required to secure the loan. Today. the average down payment is anywhere between 5% and 20% of the home’s total value.
In Waldorf (where the average home cost is just over $250,000), aspiring home buyers should save anywhere from $12,000 and $50,000 to obtain keys to their home.
Renters, on the other hand, can apply and move-in to their new home for just under $3,000, on average.
Lower Utility Costs
Apartments are smaller than single-family homes, which means that renters use significantly less energy throughout the year on heating, cooling, and electricity.
Bonus: New apartment complexes like Adams Crossing are built with Energy-Star rated features that reduce electrical waste from lighting and heating components.
Access to Amenities
Homeowners who are fitness oriented are forced to either purchase exercise equipment or invest in a gym pass. Some apartment facilities offer fitness centers (like pools and gyms) at no additional cost, allowing renters to access exercise equipment at no additional cost.
The “unseen” costs of repairs, property taxes, and homeowner’s insurance makes purchasing a home more expensive than renting an apartment over long periods of time.
If you’re interested in learning more affordable apartments in Charles County, MD, view the floorplans at Adams Crossing.