Is Renting Better Than Buying Apartments?

There may always be a time when people might think that buying is better than renting and the other way around. However, the fact of inflation in the prices of apartments influence the decision of people a lot. Little to no flexibility makes the choice harder as it is not always about the lifestyle but the financial status as well. A clique of young entrepreneurs might prefer renting while the ones that are more financially stable would lean towards ownership.

Renting Vs Buying Apartments

To keep afloat the talks we can say that both of the perspectives have their pros and cons. Renting is not always as simple as it seems, on the other hand, buying and maintaining an apartment can be really difficult. Since both of the terms serve separate purposes, one may and may not be better than the other one.

What is Renting?

Renting is a simple phenomenon, you are paying a certain amount for a place to live. You won’t have ownership of the apartment, but you will be living there by paying an amount in return. Renting can be termed as easy but it can be tough when you face unpredictable rent increases. For an instance, the person who rents the apartment and lives there might have to find another home when the landlord wishes to sell the apartments, convert them into condos or just simply increasing rent way above you can afford.

Pro’s of Renting

Renting has its advantages, and to be honest a lot more than the disadvantages it contains. Persisting the people to rent more often.

  • A small amount to pay monthly or annually depending on the contract.
  • Maintenance is handled by the landlord.
  • Flexibility to move, if your employer is shifting.
  • No property tax issues.
  • Fewer thoughts on the declining rates of real estate.
  • Fewer utility bills.

Con’s of Renting

Since the phenomenon is full of advantages, it houses a few major disadvantages as well. People might be influenced more by the disadvantages of renting rather than the advantages.

  • A steep rent increase.
  • The landlord can evict you at any time.
  • The contract of renting makes you bound when leaving or moving out.
  • Changes in the apartment cannot be done without the approval of the landlord.
  • The apartment will be your home but not an asset.

What is Buying?

Buying specifically means spending some money to make an asset or have a liability, for real estate, buying is usually always about making an asset. Real-Estate is an asset, you spend a specific amount, which is generally more than the rent you observe, and buys an apartment or a home. The apartment is all yours, you can rent it out, you can live in it or might as well just leave it to see if the price of the land increases. Buying and owning a luxury apartment has its own advantages and disadvantages.

Pro’s of Buying

From stability and settlement buying is more profitable for a person than renting, in the long term.

  • Freedom to do anything you want.
  • Redecorate and renovate whenever you want.
  • Stability and settlement, no monthly rent issue or thoughts of eviction.
  • Complete privacy.
    Buying a home is an asset.
  • You can rent it for monthly earning.

Con’s of Buying

The disadvantages on the other hand are way less complex when you own a home. In shorter or longer terms it can be a disadvantage but not a complex one except for a few.

  • Property taxes.
  • Less mobility if you have to move.
  • Monthly expenses might be more due to utility bills and maintenance.
  • Not a liquid asset, might take a while before it sells.
  • If not bought at the right location or place, the property might lose value.

Buying is Better than Renting

Locations, plans for the future and most importantly money choose to rent or buy. Although buying is way more beneficial for a person in a longer period of time, money plays the key in this choice. Creating assets is better than living in a liability. Hence buying luxury apartments will be better than renting an apartment.