For decades, owning a home has been on the unwritten list of ultimate life goals. Today, global mobility and changing lifestyles mean that buying a property isn’t the best decision for everyone. Let’s take a look at some the considerations in the ‘Rent vs. Buy’ debate.
Are you in a good financial position to buy?
One of the biggest factors in this decision is undoubtedly financial. Down payment aside, buying a property comes with significant additional costs, such as property taxes. Renting, on the other hand, requires little initial capital. All you need is the income to afford the initial deposit and monthly rental payments.
But while the threshold to rent is low, money paid towards rent is a pure expense, whereas mortgage repayments can be viewed as an investment. Buying offers the possibility of a positive return on investment (ROI) that simply doesn’t exist for renters. Of course, ROI will depend on the specific property you choose, as well as other factors, such as neighborhood development and the general state of the property market.
While buildings do suffer some wear and tear offer time, Millennium Residence is one example of a development whose value has steadily increased over time, and continues to do so.
Do you prefer autonomy or freedom from responsibility?
As a renter, you are generally bound by rules set by the landlord. Common restrictions include pet ownership and the number of people allowed to stay in the unit. As a condo owner, you are free from these restrictions. You also have complete freedom to change and personalize the interior as you wish.
On the downside, you are responsible for ad hoc maintenance costs and have to pay a monthly common area fee. This fee goes towards maintaining the building and shared facilities. You may also need to pay an additional fee for parking space rental.
As an owner, you will also need to deal with building management on matters such as upkeep and regulations. When considering a development, try to identify whether building’s management has a proactive, motivated management style. In the case of Millennium Residence, residents enjoy the benefits of a superb building management team.
Are you seeking flexibility or stability?
For those whole life and work circumstances are constantly changing, renting provides the ability to move on short notice. Buying, on the other hand, means making a long-term commitment to a specific location. If flexibility and mobility are important to you, remember that breaking a lease is much easier than offloading a property.
Thinking about buying?
The decision to buy a condo is a personal commitment. Finances aside, you should consider whether the building and neighborhood are a good fit for your lifestyle and priorities. One way to be certain of this is by first renting a unit in the building before deciding to buy.
Whatever route is right for you, we wish you all the best in your home search. For information on Millennium Residence rentals and sales, call us at 02-259-3336.