Luxury city apartments, for obvious reasons, are quite expensive. Yet some of the best loft apartments in the world are to be found in Philadelphia, and often at a lower cost than one could find in New York, D.C. or Boston. Average rental prices in Philadelphia were $819 in 2013, below the average for most cities of its size. Even within Pennsylvania, the cost of living in Philadelphia is 0.7% lower than the state average, which is unheard of for almost any other major city. The number of beautiful loft apartments in Philadelphia, available at a decent price, is one of the things that makes Philadelphia a great city.
The question is, is it better to buy or to rent?
To Buy
There are certain advantages that come with home ownership as opposed to renting an apartment. You can do a renovation on your home, or build an addition onto it. Many homeowners enjoy the comfort of knowing that their home truly belongs to them.
Yet there are also disadvantages to home ownership. A majority of home owners receive no tax benefits from owning a house. Since many homeowners move within the first five years, they lose money to the bank without gaining equity, and are left with less than they started with. Home prices also fluctuate with the market, making it difficult to assess the value of one’s home. Maintenance costs and property taxes can go up from year to year. When you compare the obligations of home ownership to the possibility of renting a new luxury apartment, it begins to seem expensive and troublesome.
To Rent
Renting a new luxury apartment is sometimes perceived as a less secure and more expensive option than home ownership. However, think of it this way. Since homes depreciate in value as they get older, requiring expensive repairs, they aren’t a great long-term financial investment– certainly not compared to stocks, which have increased 10 times in value during the time that it took homes to increase 2 times in value. Furthermore, renters are responsible for less maintenance, such as lawn care, and they benefit from the peace of mind that comes with having a professional service to take care of such things. Renting is also a better financial decision for people seeking to relocate from time to time.
Conclusion
Renting a new luxury apartment in Philadelphia is a cheaper, more practical alternative to home ownership that affords all the amenities of city life. With so many great lofts in Philadelphia available, it’s never been easier to find lofts for rent and to live comfortably in Pennsylvania’s greatest city.
