Renting vs Buying an Apartment
Nowadays lots of millennials especially young executives or newlyweds prefer to live in an apartment rather than in a house. Living in an apartment giving you a lot of convenience and advantages. For example, you will have a more secure and safe place to stay since all of the apartments will be provided with 24 hours security. You can choose one that is strategic to the city center, or your workplace. You also have extra sports facilities without extra expenses such as a swimming pool, jogging tracks, basketball court, tennis court, etc.
But what about another consideration of buying an apartment? Before we go deeper, let’s dig in first what is the difference between renting and buying?
- Renting: According to encyclopedia.com renting means entering into a legal arrangement with a landlord (the owner of a property) to live in the space for an agreed-upon fee. This fee which is usually paid every month is called rent. And according to smartasset.com, buying an apartment means buying a unit in a building. That means you will share the costs of running the building with other apartment owners.
If you want to decide whether you want to rent or buy a unit in an apartment, It is always better to ask yourself more specifically what is your aim? How long do you want to stay? If you are a newlywed who wants to use the apartment as your living or stay while keep on saving until you are financially independent enough to buy a house it’s okay to just rent. Or if you only want to stay for some periods it is better to rent.
- Buying: Buying an apartment means making the room yours. You have the right and obliged to do whatever and however you’d like with the apartment. The apartment would be under your name and you are responsible for it.
Since some of you may be a newcomer or ex-pat who just started to live on your own and not financially stable yet, we would love to help by putting more details on the pros and cons of buying an apartment. We collect some credible and trusted resources to help you consider and choose the best decision.
Renting An Apartment
- High Flexibility and Mobility
Nowadays you can choose lots of apartments that let you rent for the minimum of one month all-inclusive. This term is very beneficial for those who just start to live independently and still financially unstable. Choose the nearest apartment to your workplace and the city center which will give you an easier life and high mobility.
- Free from extra expenses
The main advantage is obvious when we are talking about costs. You don’t have to pay for extra taxes, maintenance fees, insurance, mortgage payment, etc.
Feel free to enjoy all the provided facilities by the apartment such as the gym, parking areas, security, swimming pool, etc. Living in an apartment is basically like living in a house in a simpler way and more effective.
- Limited Space
The apartment is not as spacious as most houses. Some of them also have some restrictions, for example, you cannot redecorate or fix anything as much as you like. You also have to obey some rules, for example, no pets are allowed.
- Fluctuate Rent Fees
In some cases, it is highly possible that the price of the rental fee can spike up anytime. You have to be ready if one time the rent fees suddenly surge up. Be prepared in terms of preparing extra cash or choose to walk out and move to another apartment.
- Stick to the rules
You are obliged to stick to the rules set by the landlord. Maybe you are not allowed to redecorate the apartment on your own. You also cannot control if suddenly the rent fees spike up. If this happens, you have no other choice than leave or adjust with the new monthly fees. Renting is great if you are still unstable and provide you with both great mobility and flexibility. While buying an apartment is good for renting it to other people or investment.
Read also : The Average Cost of Apartment in Jakarta
Buying an Apartment
- Good investment
If you are thinking to buy a unit in an apartment as an investment buying is the best option. Keep in mind that once you decided to buy a unit of apartment you also need to pay extra expenses for property taxes, mortgage payment, repair fees, buying furniture (optional), insurance, etc.
We can’t deny that the price of land, house, or apartment is constantly increasing every year making it a good option for investments. You can buy and rent it to other people or keep it for a while and sell it 2 or 3 years later.
While you decide to only rent the apartment you are free from the responsibilities of owning an apartment. You are free to choose an apartment that will suitable for you and your family. You don’t have to own money that much to start living in a monthly rent apartment. Feel free also to enjoy the facilities provided by the apartment. Started from the swimming pool, gym, tennis court, walking trails, playground, etc. At the same time, your responsibility comes in different terms. You can be free to redecorate the unit as much as you like. Feel free to make rules for any renters who would rent your apartment.
- More Responsibility
You have to fix everything yourself. Be prepared for extra expenses to fix and repair anything inside your unit. You also have to pay extra expenses from mortgage payments, property taxes, insurances, repairs, etc.
- Unwanted Disasters
If there is anything happen, for example, natural disasters like earthquakes, or fires that destroy your unit. Of course, you will have to deal with the expenses of the worst is you lose your apartment. This thing will less likely happen if you only rent. You are not burdened that much in terms of financially.
So there you have the advantages and disadvantages of renting and buying an apartment. We hope this could help you consider the best choice for your needs. Good luck with moving! Don’t forget to check out other posts regarding moving into an apartment in our blog!