House vs Apartment: In The Long Run?

If you've owned a house and apartment, this question is geared towards you.

Which is more cost effective in the long run?

Example: How much do utilities/property tax/insurance,etc, collectively cost per year, for a homeowner?

If you have no mortgage(buy upfront), would a house be a better option?

Also planning to have children. Between 1-3.

An apartments total costs average around $13,000 annually.

In comparison (without mortgage), how much would annual bills be for a house?

5 Answers

  • 5 years ago
    Favorite Answer

    Geez, house all the way.

    I was paying $500 a month on the east side, plus phone, gas, and electric. Rent went up once a year.

    My house was bought with a WHEDA loan, I put $5,000 down and the mortgage was set at $360 a month. I paid extra on the mortgage when I could, and got the 15 year mortgage down to far less than that. Sure, I had to pay a water bill, about $120 every three months. My gas/electric was actually lower, since the house was more efficient with holding heat AND it had central air which I didn't have at the apartment. Highest heating bill was $270, lowest in summer for the electric was $68.

    I have off street parking so no more buying parking passes, I have a garage, no alleyway, no people running behind the house, I'm not next to a bar anymore so no yelling/singing/vomiting. It's a good neighborhood. Police and fire department are 4 blocks away.

    Work on the house was a new furnace (got a home loan for that), we put on new energy efficient windows (13 of them), reshingled the roof at $5,600. New gutters, and new siding, all thanks to the home loan which was at 5% interest rate. All equity in the house is accessible, with renting you get no equity. I get a better amount off my taxes with the Homestead credit.

    We have phone, gas (dryer, water heater and furnace), electric and water bill on the home. I have the home loan left now that the mortgage is paid off. All fixing has been done already. There was one sewer backup (a gallon of water came up, we caught it quick) which was a $180 repair to have a plumber come in and cut out the tree root blocking the pipe. We replaced two toilets (both cracked eventually, they were 50 years old) cheaply by ourselves, and redid some of the plumbing ourselves, replaced the water heater (12 year life on those) ourself, furnaces last around 25 years, and switched over to energy efficient light bulbs. The siding replacement we had done fairly cheaply since we were a 'display' house for the product. Both doors to the outside were replaced when we had the windows done. The garage roof was redone by a relative so that had new shingles put on in one afternoon. And we upgraded the electrical box, which was not cheap but we needed that done. Only a qualified electrician can do that.

    If you're going to stay in a place for years, a house is a better buy. You NEVER have the landlord coming in to bother you. Property taxes on our place are $1,200 a year which was built into the mortgage payment. You can also deduct the interest on your mortgage on your yearly taxes. You can't do that when you rent. Homeowners insurance is $500 a year, my renters insurance had been $99 a year. We have a two story house, I like the extra space!!! And yes, if I had to do it all over again I would, only I'd pay more attention to the condition of the house first.

  • Anonymous
    5 years ago

    It completely depends on the apartment and house.

    In general, houses are more expensive to own especially in the early years of the mortgage and may be less expensive near the end of the mortgage.

    Think about what rent for an apartment cost 30 years ago. Now think about what rent will cost for an apartment 30 years from now. If you buy a house you will have ZERO rent payment 30 years from now. Of course you would still be stuck with the property taxes, maintenance, repairs and upgrades. But you will OWN a valuable asset.

  • 5 years ago

    It all depends on how you live and how places are insulated and where you keep the thermostat at...size of place, is everything caulked to keep air out and on and on. Every house, every place has different amount of usuage...and then there is the rate you accept for you electricity. YOu can usually shop for electric companies in your area...never take a variable rate, they always go way up.

  • 5 years ago

    Do you understand ownership in the long run? That's the biggest difference here.

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  • 5 years ago

    an apartment is almost always cheaper if you have a mortgage.

    if you can afford the house full out then do that... its much cheaper with no mortgage

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