In some parts of the country, people can no longer realize the American dream of owning their own home. Too many lower and middle income Americans are struggling to put food on the table and gas in the car. They simply cannot afford to pay a high mortgage on top of it all. Foreclosures have gone up and home values have gone down. If you’re looking around at so many housing choices, you might want to consider renting.

Renting options

If you’re waiting for the housing market to improve or you can’t afford a mortgage right now, you have plenty of rental options. While considering apartments and townhouses, don’t forget to consider the benefits of renting a duplex.

For many people, renting a duplex has become increasingly popular as the preferred housing choice in this new and uncertain century and economy. Housing remains the largest budget item for most middle-class families. But more often, such families are downsizing and saving more instead of spending it all on a monthly mortgage payment or rent.

When deciding that buying isn’t for you

A quick glance at the real estate section of your local newspaper or online listings will show that the options for buying are lengthy. You can choose from conventional homes, manufactured homes, cooperative apartments, condos, duplexes, and townhouses to purchase.

The benefits of owning one of these homes are just as varied. To start, there are cost savings. In some areas and situations, owning a home can cost less than renting. You also control the property and can realize capital gains from the start. You can consider it a kind of forced savings if you pay down the principal balance by a considerable amount and stay in the home for a long time.

There are also tax advantages to owning a home. Interest and property taxes are tax deductible and that equals a good deal of savings. You also get a good deal of personal freedom when looking to remodel, redecorate or make improvements. You can make your own rules considering noise, pets, and children.

However, what if you can’t afford it? What if your stay in a particular town is temporary?

The case for renting

There are many benefits involved in renting. You don’t need a high initial investment because there are no down payments to make. Renting is also less costly every month. Whatever you have in savings can be invested in other forms of investments. This can bring higher returns if you’re staying in the property for less than four years.

There is also limited responsibility while renting. When you have a problem or needed repair, you simply call the landlord. You may also experience less tax impact than a homeowner because you aren’t influenced directly by fluctuating property values. You may also have an easier time setting the family budget because rent is a fixed amount that often includes utilities. Finally, leases tend to be very short-term and involve lower insurance costs.

What is a duplex?

A duplex is a multi-unit structure that includes two housing units with a wall, ceiling, and floor in common.

When looking at renting a duplex, the following considerations should be made.

• Are there enough bedrooms and bathrooms? 
• Is the living space adequate and are the renting conditions appropriate? 
• Is there enough storage space?
• Do your potential neighbors have similar demographics? For example, if you have children, is the area family-friendly? If you’re single, will the sights and sounds of children bother you too much?

Every family has different needs and no one shelter can satisfy everyone. You should always be prepared to make some trade-offs.

The price is right

Another consideration when renting a duplex is the cost. The amount you can spend on rent is influenced by your current financial commitments as well as your income, both what you earn now and what you might reasonably earn in the future. Use this opportunity to make a family budget and plan properly for future expenses through savings and see how much is left over each month. Don’t be afraid to weigh the advantages of investing in a home rather than moving toward other investment options – especially when the housing market is a weak one.

When renting a duplex, there are several generally recognized guidelines to help families determine the amount of money to spend on rent. You aren’t just spending your housing dollar on rent each month, if these aren’t included, you are also paying for utilities, water, telephone and maybe even cable television.

Think about how much you spend each week on groceries and gas. Consider how much you put aside for savings. Do you rely on two incomes? Use this opportunity to assess your spending habits. Build better habits and put more of your money away.

Renting a duplex that fits into your budget

Look back at your last three months of spending. Divide the total by three to find the average amount spent for each basic expense like living expenses, savings, and entertainment or social events. Start with your check register and billing statements and move on from there.

Afterwards, you should be able to determine the kind of duplex you can afford to live in.