Page 25 - ARUBA TODAY

BUSINESS Saturday 1 June 2019
A25

5 reasons to keep renting

By KELSEY SHEEHY choose to rent in part be-
Associated Press cause of the amenities new
You have a stable job and buildings offer. “These luxu-
a solid nest egg. Time to ries are significantly more
buy a home, right? Not common in rental buildings
necessarily. than condos.”
Although homeownership YOU LIKE FINANCIAL PRE-
can offer financial benefits DICTABILITY
like equity, appreciation Average rents in a city may
and tax deductions, there fluctuate, but once you
may still be good reasons sign a lease, your rent is
to keep renting even when fixed for the duration of the
you can afford to buy, in- lease, if not beyond. The
cluding more mobility and same cannot always be
financial flexibility. said for homeownership.
“It’s really just not as cut Yes, your mortgage pay-
and dried as the famous ments remain stable, but
‘throwing money away on maintenance costs can
rent,’ especially if renting is be unpredictable. Prop-
buying you something you erty taxes can also fluctu-
value, such as flexibility or ate, and not just because
consistency in terms of cost your home value increases.
of living,” says Charlie Bo- Cities can impose higher
lognino, a certified finan- In this April 23, 2018, file photo a for rent sign denotes the availability of another existing home in property tax rates, and fed-
cial planner at Side-by-Side Jackson, Miss. eral laws can change (and
Financial Planning LLC in Associated Press have changed) how much
Plymouth, Minnesota. tenant. So you can more as much as you paid or well-managed apartment you can deduct from your
Here are five reasons rent- easily jump at a career op- enough to cover your mort- building, and all of that is taxes.
ing might make sense for portunity across the coun- gage.” taken care of for me.” Buying a home comes with
you. try or simply try a different YOU DON’T HAVE TIME FOR YOU CRAVE AMENITIES a lot more upfront costs,
YOU WANT FLEXIBILITY neighborhood on for size. MAINTENANCE Renting can give you ac- too. First, there’s the down
Buying a home could eas- That level of flexibility can Homeownership is work. cess to perks like an on-site payment, which might be
ily tie you to a place for also provide relief if your fi- Yardwork. Housework. gym or a rooftop swimming anywhere from 5% to 20%
years, if not decades. You nancial situation changes. Maintenance work. All of pool. But some buildings go of the home price. Then,
can always sell, of course, “When you’re renting, you that can be a drain. “Own- well beyond the basics, of- there’s closing costs. On a
but there are associated have a light at the end of ing your own property just fering next-level amenities, $300,000 home, you could
costs — and you could lose the tunnel where, if you’re takes more time,” says Ken- says Sophie Morrison, a real pay as much as $15,000 in
money if you sell too soon stretched thinner than you ny Kline, an entrepreneur in estate broker in downtown closing costs.
or are forced to sell in a thought you would be, you Brooklyn, New York. “Deal- Chicago. All of that can leave you
down market. can pick up and move ing with maintenance, the “We’re seeing things like feeling cash poor. So it’s
Renting, on the other hand, when your lease is up,” says co-op board, the occasion- bowling alleys, boxing rings, not surprising that 34% of
gives you more freedom to Kelly Ennis, a certified finan- al construction project all golf simulators, massage first-time U.S. homebuyers
relocate as desired. Sure, cial planner and founder of takes more time and stress rooms, salt saunas, basket- said they no longer felt fi-
you have a lease to con- Infinity Financial Strategies than you realize.” Kline pre- ball courts, movie theaters, nancially secure after pur-
sider, but those typically LLC in Granby, Connecti- viously owned a home, but recording studios and wine chasing their current home,
last just 12 months, and you cut. “With a house, you went back to renting and cellars,” Morrison says, not- according to a survey con-
may have the option to have to pay it off or sell it, has “never looked back,” ing that many of her cli- ducted this year by The
sublet if you can find a new and hope you get at least he says. “Now, I live in a ents can afford to buy but Harris Poll for NerdWallet.q

US consumer spending slows to 0.3% gain in April

By MARTIN CRUTSINGER in April compared with a keep rates unchanged
Associated Press year ago, up slightly from this year. However, Trump
WASHINGTON (AP) — Con- a 1.4% 12-month change in has argued that the Fed’s
sumer spending slowed in April. The Fed tries to man- policies are hurting the
April while inflation was up, age interest rate policy to economy and the central
but still far below the target achieve annual price gains bank should be slashing
set by the Federal Reserve. of 2%. However, through rates instead of keeping
The Commerce Depart- the first three months of this them steady. Fed Chair-
ment said Friday that year, inflation fell farther man Jerome Powell and
spending increased 0.3% in from this goal. President other Fed officials have at-
April following a 1.1% surge Donald Trump has argued tributed the slowdown in
in March that had been the that the slowdown in infla- inflation to temporary fac-
largest increase in nearly a tion shows that the Fed is tors which should reverse
decade. Personal income keeping monetary policy in coming months and
growth, which had been In this April 24, 2019, file photo Marcy Seinberg shops at a too tight and should start have argued that the Fed’s
lagging in recent months, Walmart Neighborhood Market in Levittown, N.Y. On Friday, cutting interest rates. The wait-and-see approach on
jumped 0.5% in April. May 31, the Commerce Department issues its April report on Fed raised rates four times further changes in interest
Inflation, as measured by consumer spending, which accounts for roughly 70 percent of last year but then reversed rates is appropriate given
a gauge tied to consumer U.S. economic activity. course in January and has how low unemployment is
spending, increased 1.5% Associated Press signaled that it plans to currently.q