While driving in my car the other day, I heard a radio commercial for a really popular home builder in this area. As someone who has rented an apartment, owned a home, and had a father who constantly taught fiscal responsibility, I tend to see the flip side of any type of new and exciting financial obligation (such as buying a home or car). This particular commercial touted that you could own a home for just as much as you pay in rent. This is almost always a misleading statement and I really can’t believe that builders and sometimes realtors can tell people this with a straight face.
Here are three things to consider where renting apartments and buying houses are concerned:
First of all, the monthly mortgage that they typically advertise does not include property taxes and insurance.
Secondly, it does not include HOA fees which can be anywhere between $50 per month to $300 per month, depending on the neighborhood.
Thirdly, and most importantly, the advertised monthly price does not include the yearly maintenance (usually 1% of the home value per year) and decorating costs.
Obviously, you don’t have any of those costs when you are renting an apartment home at our community. I know that many of you have owned a home and understand the financial responsibility of home ownership. For those who haven’t, keep this information in mind when listening to one of those commercials!