Is paying more for a better apartment worth it? It all depends on your priorities, lifestyle, and income.
If you need better amenities in everyday life and have the means to pay a higher rent, go for a nicer apartment!
Today, many people believe they will save money by moving to a cheaper place.
But, contrary to popular belief, living in a nicer apartment with a higher rent might be the better option for them, and vice versa.
Let’s explore whether paying more for a nicer apartment is worth it or not!
Is Paying More Rent for a Better Apartment Worth It?
Given that we spend a significant portion of our lives in our homes, it certainly doesn’t hurt to ensure that the apartment you live in is nice and comfortable.
After all, you wouldn’t feel at home or spend hours in a place you’re not happy and satisfied with.
No one would want to live like that. In such a situation, it’s better to find a better place.
But before you decide whether paying more for a nicer apartment is worth it or not, consider the following things:
Assess Your Lifestyle
If your lifestyle is such that you spend most of your days outside of your home, then having a low-rent apartment might make sense for you.
If you only head to the apartment to grab a meal or take a quick shower, then make sure it’s a secure and bug-free space, and you’re good to go.
On the flip side, if you’re more of a homebody or freelancer who works from home, you will need to consider a quiet space that offers better amenities and is in a safer neighborhood.
The point is that the way you live should determine the type of apartment you will live in.
Your Income & Budget
When choosing an apartment, you need to ask yourself if you have the income needed to afford a higher rent. While luxury apartments offer many perks, their rents are quite high.
On the other hand, cheap apartments are easier to afford on lower incomes. So, assess your budget before renting a nicer apartment.
Think of your current monthly rent and add an estimated amount to it to see if you can afford to pay your estimated new rent each month or not. Don’t forget about adding your existing debt (including all the monthly EMIs) into the mix.
Do you have a lot of student loan debt or personal and business loans to pay off? If your debt is high, you might have trouble finding a better apartment.
Moreover, it might be better to make the shift to a nicer apartment after paying off your debts. That said, if you can afford to pay off the debt and pay the monthly rent timely without worry, then go for it.
When budgeting for a new apartment, also make sure it doesn’t eat into your monthly savings. So if you save 10-20% of your income monthly (which you might be investing in various instruments – such as index funds or bonds or even crypto), make sure you can continue to do that even after taking the new apartment.
The Amenities You Need
When you pay more rent, you get better amenities. However, before you opt for a nicer apartment with higher rent, assess whether you need those amenities in your life or not.
These services and amenities could include a swimming pool, private parking, furnished kitchen, gym, rooftop lounge, concierge service, and more.
If you’re someone who will regularly use the amenities offered by your chosen apartment complex, they might be worth the extra rent.
Moreover, if you already spend money on a gym membership, it might be better to shift to an apartment with a swimming pool and gym that you can use without paying extra.
Follow the 50/30/20 Rule of Money Management
The 50/30/20 rule dictates that you should only spend 50% of your salary on your needs, 30% on your wants, and 20% on your monetary goals. Your needs include rent, car payment, utilities, groceries, insurance, etc.
Your wants can include new clothes, accessories, gadgets, and more. Meanwhile, the remaining 20% of your income should go toward financial investments for your future.
It could include a retirement fund, a down payment for a house, or a college fund for your kids.
If you’re looking for an apartment that doesn’t fit into the 50% of your income, you can take some percentage of the amount from your wants.
However, this breakdown will depend on your priorities and needs in life. Plus, this breakdown of finances isn’t set in stone; you can tweak it to strike the perfect balance based on your needs.
Reasons Why Paying More for a Nicer Apartment Might be Worth It
Here are some compelling reasons why a nicer apartment might be worth the higher rent:
Every Amenity and Feature Will Work
The truth of the matter is cheaper apartments are cheaper for a reason. Typically the building they are in is older and a little run-down.
Perhaps you might find a door that creaks while closing, an amenity that doesn’t work, or some issue with the drainage. These issues might result in costly repairs.
Moreover, you might have to waste your time running after the apartment complex management to fix the problems.
They might not make much headway, resulting in you getting stuck with these problems.
On the flip side, a nicer apartment will be in a nicer, well-maintained, and newly constructed building. It will also require less work to be done and will cause you less headache in the long run.
Even if your unit has amenities that don’t work, the apartment complex management will likely address the issue quickly. You will not have to pester the complex in charge for days on end.
Better & Safer Location
Typically, apartment buildings with low rents tend to be situated in less-safe neighborhoods that are far from shops, schools, parks, etc.
On the other hand, apartments that demand higher rents are located in safer parts of the town that are less exposed to crimes and security threats.
Moreover, these complexes are often close to schools, parks, grocery shops, and other buildings or amenities that make a neighborhood attractive for all sorts of families.
Stricter Rules for Better Neighbors
Apartment complexes that charge higher rent also ensure that neighbors respect each other.
While there is no guarantee that your neighbor won’t play loud music or play drums or will have quiet pets, there is a higher chance that any issue will be promptly taken up by the apartment complex management.
If you have any issue with your neighbors, there is a higher chance that you would be heard and the issue would be acted on.
There’s no denying that living in a luxurious apartment with a higher rent will enable you to enjoy more amenities and perks without paying any additional fees.
Some of these amenities include:
A Full Kitchen with Amenities
You might be attracted to a pod-style apartment that comes with low rent. However, these apartments usually don’t have kitchens, which is a huge drawback.
Some of these low-cost apartments have a dorm-sized stove and refrigerator instead of a full kitchen with an oven and other amenities. The inconvenience might cause you to eat out more.
This way, you will end up spending a lot more than you’d otherwise spend on the rent of a better apartment.
After all, you need a proper stove and oven for low-cost, at-home cooking and baking.
An apartment with a higher rent will likely have a fully-furnished kitchen with a countertop, shelves, cabinets, fridge, stove, and kitchen. It’s ideal for a family that likes to cook at home.
Usually, apartments with low rents don’t offer secure parking, resulting in you having to park your car outside on the street.
It comes with the inherent risk of exposing your car to the elements and thievery.
The allure of saving on rent might end up causing you to spend more on care repairs to fix the wear and tear from harsh weather and missing fixtures due to robbery.
Moreover, when parked outside, your car is also exposed to passing cars. It is likely to get damaged in an accident. Alternatively, someone might scratch your car by accident.
If the driver who caused the accident doesn’t leave you a note, you will have to pay for the repairs yourself.
On the other hand, if you live in an apartment with a higher rent, it will likely have an underground parking space or offer personal garage space.
It’s a lot safer for your care than parking it on the street.
Moreover, it will be easier to take your car out every day and park it in a designated spot. You will not have to look for an empty spot frantically.
Similarly, you will not have to park your car too far away from your home because you can’t find an empty spot in front of your building.
Washer & Dryer inside the Unit
Another significant perk of choosing an apartment unit with a higher rent is that it will come with a fitted washer and dryer inside the unit. This way, you will not have to spend on laundry.
If you have a big family or have to change clothes often due to regular office work, gym, etc., you will need to wash your clothes more frequently.
The cost of washing more clothes every month can certainly add up.
Moreover, you will also have to take time out to take your clothes to a Laundromat. On the flip side, doing laundry at home is significantly more convenient and saves time and money.
It will enable you to do your laundry at your convenience and according to your schedule. You can pop a load in at night, dry them before sleeping, and fold the clothes after waking up or after work.
Gym & Swimming Pool
A luxurious apartment complex will also have a functioning gym or fitness center and a swimming pool and hot tub combination.
For a fitness freak, these amenities are worth the higher rent.
After all, the cost of swimming regularly at a fitness center and exercising at a gym can be quite high. If you live in such an apartment, you can avail of these services for free.
Moreover, when these amenities come with renting the unit, you can fit these exercises in your routine whenever you want instead of being forced to stick to a routine based on the timings of a community gym or pool.
It will help you feel healthier and more refreshed in daily life at your convenience. Moreover, physical activity will help you sleep timely, making you feel more productive at work.
An apartment with a high rent might also have a hot tub with a pool. You can use the tub after work to relax your muscles.
It will help you save up on massages at fancy spas that charge exorbitantly.
CAVEAT – Don’t Get a Nicer Apartment in Anticipation of higher Future Earning
I made this mistake, so it’s my duty to inform you about it.
If you can’t afford a nicer apartment with more rent now, but you expect some monetary gains in the near future (maybe an increment or bonus or extra sales/contracts), don’t go for the better apartment today.
Do not lock yourself into higher rent in expectation of higher earnings in the future.
You don’t want to be in a situation where things don’t go your way and you don’t end up getting that extra money you were certain you’ll get. That can leave you in a pcikle.
Instead, keep your rent low, and when you’re in a position to afford a nicer apartment with higher rent, then go for it.
The Bottom Line
At the end of the day, you need to ask yourself if paying more for a nicer apartment with it to you or not. The answer lies in your income, lifestyle, priorities, and needs.
Once you assess these, you will have a better idea whether you should spend more on a nicer apartment with better security and amenities or not.
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