To buy or to rent? That is the question of most condo dwellers today. With numerous condos for sale and the lifestyle benefits of living in a well-connected vertical community, a condominium is a practical residence of choice.
While decision making should not be made in haste, knowing whether to buy or rent a condo unit is easy when your weigh the pros and cons of each. Align them to your objectives, necessities, and budget to come up with an informed decision.
Help yourself decide which move is best for you. Here are the things you need to know.
RENTING A CONDOMINIUM
A rental condo unit caters to those in need of temporary housing. If you don’t plan to stay or own the property for a long period of time or for a lifetime, renting is probably a good move for you.
Pro: Unit is maintained properly
Condo units for rent are private-owned. This means that owners are personally and emotionally invested in it, making them extra attentive and concerned about its well-being. So, a tenant like you has nothing to worry about unit maintenance upon the start of your occupancy.
Pro: Fully furnished unit
Most rental condo units today are furnished with quality materials and decent appliances. Whether your landlord has occupied it or not, renting a fully or partially equipped condo unit means less worry for you.
A caveat though: Apart from the number of bedrooms and floor area, rental fee can also depend on how equipped the unit is.
Pro: Open to negotiation
Most landlords are open to negotiation, which gives you an opportunity to haggle and match the rental fee with your budget. A condo unit for rent usually consists of mortgage and other taxes, which sum up to a reasonable price.
Discuss your concerns on payment schemes to your prospect landlord, and don’t be afraid to negotiate to arrive at a win-win situation.
Con: Association fees and other payments
Just like any subdivisions, condominiums are run by a developer and homeowners’ association. This requires you to pay association dues covering building maintenance, operations, and other amenities like swimming pools and gym equipment.
However, this isn’t necessarily that bad if you’re up for these additional services, but remember that such fees may increase on a monthly basis.
Since you do not own the property, you cannot do any changes or renovations to your space. Most often than not, every move like bringing in appliances or removing some of it, as well as disposal of unused materials, must be consulted with your landlord.
Tip! Read your contract carefully to avoid penalties and charges from your landlord.
Con: No Ownership
Renting a condo unit does not entitle you with ownership no matter how long you stay in the property. Once your contract expires and your landlord decides to sell the condo unit or stop leasing it out, you have no choice but move.
BUYING A CONDOMINIUM
Buying a condo unit is a future-oriented decision. It’s a tangible investment, which means that you can either use it or earn from it. Even if you move out and live in another property, your ownership lasts a lifetime.
Pro: One of the best investments
Buying a condo is equivalent to purchasing a house. It adds up to your net worth, benefitting your wealth in the long run. When you decide to move out from your condo unit, you can profit from it by reselling at a higher value or renting it out.
Pro: Full control over your unit
Since you own the unit, you have complete control over your property. It’s at your full discretion whether you want to retain or alter your interiors. Exterior renovations may not be allowed though since you share the exteriors with other unit owners. Better double check with your developer or building administration.
Take note! Your building administration may require necessary documents and permits before you can proceed to renovation. A simple unit redesigning though won’t be needing such authorization.
Pro: Improves your credit score
In most cases, you have to avail a home loan when buying a condo for sale. A loan like this can boost your credit score. Maintain a good repaying behavior to your creditor to benefit your future debts and purchases.
Con: Huge financial responsibility
Buying a condo unit entails a huge financial responsibility. You have to allot a specific amount of money for loan repayments, taxes, mortgages, association dues, and bills for water and electricity.
Tip! Plan your finances accordingly and designate a budget for each payment. Seek advice from friends, relatives, and experts if necessary. A silver lining here is that buying a condo will make you a financially responsible adult.
Define your objectives. Weigh in your needs. Evaluate the advantages and disadvantages of buying and renting a condo unit. Determine which of your two options is best for you. After all, it all goes back to what matches your plans.