Buying or renting condo units? Which one is best for you?
Having the money to buy a condo is among the best feelings you’ll ever feel in life. Imagine having to own your very own place free from your parents and becoming a full-fledged adult!
Now, you’ve come to a dilemma of deciding whether to buy or rent the condo. This is a good problem to have as there are unique attributes to choosing either one of the options. In fact, these options are also dawned on other homeowners before getting their own place.
So, how exactly do you decide on owning your condo unit? Read more from Sims Villa Condo below as you will be guided through the different aspects of choosing whether or not to buy or rent your first home!
The first thing to do when you have enough money for a home
You are now projecting your new home and you have saved money, so what’s the next step? Ideally, you should begin by knowing which condo to buy. If you don’t know what types of condos are out there, here is a list that teaches you exactly what they are:
These types of condos are the ones you usually see when you are searching for condos. Basically, these condos are resided by homeowners where anything inside their spaces are considered theirs.
Other than that, the outside space is not owned by the homeowners, and thus holds anyone accountable for any damages.
When you buy standard condominiums, they are usually attached to free facilities like gyms, snack bars, and swimming pools. It’s for everyone to share, so be mindful of others when using these amenities.
If you have a few extra bucks with you when buying a condo, freehold condominiums are excellent for that. For starters, the land that the condo unit stands in is part of the whole package when buying the whole unit itself.
To make it clearer, the land’s portion where your unit stands is taken into account, not the whole land itself. So, if you want to own both the unit and the land, then this is the perfect condominium for you.
It doesn’t matter which part of your own space is available to you, and liabilities will fall under your own pretences without encroaching on other people’s units. This is great if you want to have it rented or bought by other homeowners in the future.
These types of condos have land that is leased to the developer while units are built. This means that in any circumstances, homeowners cannot own the land unless it is forfeited by the original landowners.
This is perfect if you are on a budget and want an affordable space for you to live. It’s a great way for people to start making the most out of their money without breaking an arm and a leg to get their very own homes.
Another benefit of this type of condo is having an easy exit should you want to move out of the condo. You won’t have this asset in your books, and you can plan your way out just as easily as coming into your condo.
The advantages of buying your condo
There are unique benefits when buying condos, especially when you have the means to afford it. Here are some that might sway you into buying condos for yourself:
Owning the asset a hundred percent
Having a condo unit gives you all sorts of benefits. For one, you own the whole thing. You don’t need to worry about monthly expenses in paying the rent for your condo. Instead, the worries and efforts can go elsewhere like electricity and other utilities.
Furthermore, you have all the rights in the decision-making of the condo itself. If you want other people to rent it to generate extra income, you are free to do so. You can also sell them, especially if you are planning to buy a new property.
It’s great owning a valuable asset such as real estate, especially when it is a freehold condo where you own the land as well. You can do a lot with an owned condo, and having it rented to other people is the best way to go.
Extra costs are affordable
Added expenses like insurance are cheap when you buy a condo. It’s even more beneficial when you own the condo yourself since you’ll have fewer expenses to worry about. When it comes to insurance, the coverage extends to the outer areas of the condo that you own.
When you think about it, the whole unit gets even cheaper because you are paying less for more services. Other expenses include repair, maintenance, and utility– all affordable when you get to own the condo unit because you won’t have to worry about rent expenses.
You won’t get affected by inflation
When buying a condo today, you won’t get affected by future high prices when you rent it. This means that when you bought a condo for $100,000, it’s going to remain in your books as a sunk cost.
Others will feel differently, but if you think about it, the value increases significantly when the prices are set higher in the future. This means that you got to buy it at its past market value should the time be set in the future.
Disadvantages of buying a condo
While there are benefits to buying a condo, there are also specific issues attributed to it. Here are a few drawbacks to buying a condo instead of renting:
When you sign the papers, you’ll notice a clause that intends the buyer to put a downpayment on top of the principal amount you’ll be paying for the whole unit. While others don’t require it, this is a sense of security to eliminate bird rights.
Bird rights is the privilege given to homeowners if they find any issues with the place. If they decide to leave, the developers of the said unit will have to sit with their wallets empty despite spending on brokerage and lawyers to secure the home for the eventual owner.
This is why a deposit exists to eliminate the risk developers have to face when transferring the rights of ownership to the buyer. Because you are buying, this downpayment or security can be too high of an asking price compared to rent.
When you buy a condo, you have a realtor with you who helps you find the condo of your dreams. This is another added cost for you since you’ll have to pay commission for the efforts done by the realtor.
If you don’t want to pay another percentage of the cost you would take in for yourself without an agent, then buying a house may not be for you.
Advantages of renting a condo
To some, renting is the most ideal way of living in a condo unit. Here are a few reasons why you should consider renting instead of buying a unit:
It’s cheaper to rent in the long run
Condo units are not cheap. They come in very high-price packages, and you may never know how the market can fluctuate that depreciates the whole unit. Renting a condo unit allows you to gain leverage.
And what is this leverage? If you rent, you don’t need to think about the asset being in your books that will degrade in value over time. Renting it for a small portion of the original price for a monthly period is the most affordable way you can own a condo unit.
Without inflation and taxes, you’ll thank yourself for renting the place instead of buying it. You can enjoy all the amenities for way less than the actual cost of the whole condo.
Maintenance becomes easier
Because the burden still falls on the original owner to maintain the condo for future renters, you don’t have to worry about the insurance and any other necessity for the unit to be an attractive asset.
In fact, you’ll never have to worry about that at all when you intend to rent the condo only. All you need to worry about is paying the rent every month and having the rights extended for as long as possible.
Disadvantages of renting a condo
Just like buying a condo, there are some drawbacks to renting a condo instead of buying them. Here are a few to take note of:
Because you’ll also have to pay for the electricity and other utilities, you will need to apportion your salary to pay these living expenses. While it can be a challenge, you’ll have to either save energy or double your workload to earn more.
Either way, it’s going to be a sacrifice to keep things afloat. It’s certainly not a pretty sight to have to pay every month, but that’s what you have to do to save money in the long term.
You are liable for any damages
When you break anything inside the condo, you’ll have to compensate for it since the original owner is giving you all the rights in a month after you pay for the rent.
This means that when the term is over and you decide to move out, you’ll pay even more for the damages done if you weren’t careful during your stay. So, be very mindful when living in someone else’s unit, you don’t want damages or negligence charged against you.
Start owning a condo unit now with Sims Villa Condo!
If you have the capital to invest in real estate, more particularly a condo unit, then you’ve come to the right site of Sims Villa Condo! We offer only the best for future homeowners whether it be for the whole place or through rent.
Live life to the fullest and start living in your very own place where you can expect privacy and good well-being inside your new home!