Many people assume that living in an apartment is not as good of an investment as buying a home. However, this is often not the case. Buying a home is actually a liability for many people, while renting a Waukesha apartment is a smart and economical choice.
American Homes: An Asset or a Liability?
Conventional wisdom tells us that buying a home is one of the best investments a person can make. In fact, a recent Gallup poll found that Americans consider real estate a better investment than gold or stocks.
However, as we have seen in recent times, homes can also be a liability. Many homeowners need a mortgage to purchase real estate and end up paying several times the home’s value over decades of compounding interest. In addition, many homes do not gain value, but rather lose it after the numbers are adjusted for inflation. When homeowner’s insurance, property taxes, and maintenance are factored into the equation, a homeowner may spend four times their home’s value over the decades that they live in it. Nobel Prize winner and Yale economist Robert Shiller has pointed out that, with rare exceptions, home values remain stagnant over time and do not show any net gains. When you add higher costs to zero net gains, you have a poor investment.
Are Apartments in Waukesha a Good Investment?
Apartments have several benefits over homes. First, they are far less expensive. The taxes and insurance are included in the price. There is no need to pay for interest or routine maintenance. Second, apartments require less time. Any homeowner will attest to the time that repairs and maintenance can take up.
Almost any investment, including a simple low interest savings account, will often pay off better than the average home. For many people, renting an apartment and investing the saved money in any asset is a better financial decision–and one that saves time and worry as well.
While most Americans view home ownership as a great investment, this belief is not supported by economic fact. Apartment living is a good investment for most people in the United States. While there are advantages to owning a home, these are not economic advantages. Look into Waukesha apartments today if you would prefer to invest your time and money in an asset that will actually pay off.