Many individuals, couples and families are torn between the prospect of renting or buying an apartment unit. It is indeed a difficult decision to make since both have their own perks and disadvantages. It all depends on your lifestyle, source of income and preference of course. If you are a bachelor fresh from college, renting an apartment or a house may be comfortable for you. But, there might come a time when you will think about having your own property. It could be today, it could be tomorrow, but sooner or later you need to make a decision.
There are many factors you need to weigh and decide on. It all depends on your lifestyle, work, and even finances. And you need to give time to consider all of them since you will be making a decision; it will be challenging to take it back. You may decide to purchase an apartment then decide to move after a few years. Or you may choose to continue renting only to realize you wasted a lot of money on rent instead of investing on a property. To help you decide better, read through this article.
Advantages of Apartment Rental
A lot of people will say renting is the best since there are no commitments. Just finish your contract, and you’re free to move to another place or extend it as long as you want. You can always explore many different neighborhoods and experience living in different areas with different styles. It is ideal for bachelors, but if you have a family, it is somehow tricky. Another consideration is your job. If you are expecting to get transferred to another place or if you have any plans of relocating, then renting is more plausible for you.
Renting an apartment unit is very easy; you do not have to take out any loans. All you have to do is make sure you make your payments diligently. There is no long-term commitment; you can always move whenever you want to. You can explore different neighborhoods and even cities. You can choose to live wherever you want to live with no pressure. You also do not have to worry about home insurance and maintenance. Renting is ideal if you have no plans to settle in one place or if you have no means for buying a property at this time.
Additionally, looking for apartments that suit your budget and style preference is very easy nowadays. You can go to the internet and search for keywords, for example if you live in Calgary. Just type in“ apartments for rent in calgary near me” , then it will give you a list of vacant apartments nearby, together with pictures of the apartments and the monthly rentals and terms, very convenient right?
Disadvantages of Apartment Rental
Despite all the advantages, you also have to know the problems of renting a house or an apartment. The first thing is that you have no real investment. You pay rent every month, but in the end, you gain nothing. You have no freedom to do what you want with the place. You will always need permission. Besides, it is not exciting to make changes since you will not benefit from them when you live in the apartment.
Renting also comes with its own challenges. In the long run, you will realize, you threw away money in all those years of renting a place. You will not have any investment since the property is not yours. And also, you will not be able to make any changes as you wish. You need to consult the owner for every change or improvement you want to make.
Advantages of Buying an Apartment
When you buy an apartment, you are purchasing an investment. You are putting your money to good use. Every payment you will make will bring you closer to owning the property for real. You also have security since you have a place to call your own and you can use it for future businesses like an AIRBNB Rental. It is also not difficult to get approved for a financing option; after all, there’s a lot of loans to choose from like VA loans, USDA loans, FHA loans that often require very low down payment. There is also a conventional loan that offers reasonable interest rates. Thus, if you can save up enough, it is easy to own a real estate property..
You may be paying your mortgage loan for many years, but at least you are paying for something you own and can sell if you want to in the future. You can do whatever you want with it and with no worries. It is your abode after all.
Disadvantages of Buying
Remember, owning a real estate property also comes with a lot of responsibilities. You will have to commit paying your mortgage loan since it often takes decades to pay it in full. The common repayment term for home loans is around ten to thirty years. So, that is a long time, and it could give you stress in the future.You need to make monthly payments for the next ten to twenty years depending on the terms of your loans. You can always make an estimated calculation for this using an online loan calculator. This way, you can see how much you will need to pay a month to know how long it will take you to complete your payments on your set time.
Additionally, buying an apartment also comes with different problems. You will need to maintain it which means you need to spend money on its repair and maintenance in the future.