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.
First of all
The monthly mortgage that they typically advertise does not include property taxes and insurance.
Renting an apartment does not include HOA fees which can be anywhere between $50 -$300 per month, depending on the neighborhood.
Most importantly, the advertised monthly price does not include the yearly maintenance, which is usually 1% of the home value per year, nor the decorating costs.
Obviously, you don’t have any of these 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! There are many other peripheral benefits to renting but the choice is always yours.