As the 2009 tax year closes, homeowners begin to look forward to benefits they will receive having made monthly mortgage payments. One of the key advantages to owning a home is that interest paid on a primary residence mortgage can be deducted for Federal Income Tax purposes.
Many homeowners count on this deduction to help manage the high cost of living in the New York metropolitan area. Benefits, however, aren’t reserved for those who own property. Those who rent apartments in New Jersey have also learned to appreciate an array of advantages.
First and foremost, renters of apartments in New Jersey likely avoided any negative effects related to the collapse of the housing bubble. Tenants were able to sidestep any concerns over declining home values, rampant foreclosures or underwater mortgages.
While inventories have started to shrink and prices tick up in many regions across the United States, the housing crisis left a lasting economic burden that is expected to continue in the long term. If anything, renters of apartments in New Jersey have positioned themselves to be among the few winners produced by this fiscal downturn.
But for those who haven’t chosen to enter the depressed real estate market, renting can still generate its share of positives. Consider the following:
- Maintenance is Minimal – When the refrigerator breaks down, the landlord is expected to replace it. If the heat doesn’t work, just call the apartment manager. One of the biggest advantages to renting is the minimal maintenance required. Furthermore, one need not budget for unexpected expenses. A renter’s monthly debt is relatively stable.
- Flexibility is Preserved – While breaking a lease is never a desired result, it is certainly easier than terminating a mortgage. When a renter exits early, he or she will likely owe a penalty and/or forfeit a security deposit. When a homeowner leaves the keys in the mailbox – as some have during this crisis – his or her credit and viability as a future borrower are ruined.
- Amenities Abound – Many apartments in New Jersey feature fitness centers, pools and other amenities that rarely require additional monetary contributions from residents. Such benefits, in turn, often demand substantial expenditures by homeowners.
While renting and owning each offer specific benefits, financial advantages do extend to the mortgage-less. These benefits aren’t as obvious as tax deductions, but renting apartments in New Jersey can provide certain advantages.
