Most people who are homeowner might have stated out as tenants. Most people still prefer to rent than buying not by choice but because of financial situation or circumstances. There are both pros and cons of being a tenant. Here are the factors you should consider when making the decision to buy or rent an apartment.
Renting an apartment give you flexibility. You are free to change apartments whenever you want. You might feel uncomfortable in your current apartment as a result of noise violation, insecurity, boredom or even relocation for work or education. When you buy an apartment you are limited in terms of movements. Moving means having to sell your house and even sticking around until it sells not to mention paying the mortgage while you wait.
Being a tenant relieves you from the responsibility of paying for the general repair and maintenance costs. When your sink, shower, bulbs or windows are broken you only require contacting your landlord who in return makes sure they are repaired. The land lord will also cater for security as well as garbage collection. When you buy an apartment, you will have to cater for some of these bills depending on the buying agreements.
Buying an apartment bring about freedom. You will only need monthly mortgage repayment on time and continuously. You are also at liberty to make any changes that are agreed upon during the buying process including repainting. You can even have an apartment custom made to your specifications when you rent an apartment; there are restrictions that you have to adhere to. Some landlord will allow some changes while others are very strict and will not even allow you to repaint or even put wallpapers.
Buying an apartment gives you stability when it comes to financial status. There is a fixed mortgage that you pay monthly. You are able to plan your expenses without disruptions. Renting out an apartment does not assure you of such stability. Rent fluctuates any time and you will be required to adjust for it to fit your budget or move.Owning an apartment subjects you to a lot of tax benefits. You will have to pay property taxes depending the market value of your property. The property taxes will therefore fluctuate now and then. Renting an apartment does not give you the privilege of tax benefits. You will therefore pay your taxes just like you used to.
Buying an apartment will give you an opportunity to build equity. Equity accumulates over time and so does the value of your apartment. When you rent an apartment you do not get the chance to build equity. Instead, you end up helping the owner of the complex you live in increase their equity.
Whether you prefer to buy or rent an apartment should be a personal decision. Although financial situation is one of the key factors that make people to stick to renting, it is possible to save up and own a place in future. Choose the option that is best for you and do not forget to do your research.