If you are new to the property game and have recently decided that it’s time to move into a place of your own, then you will have likely asked yourself the question “Do I want to rent an apartment, or purchase a property of my own?”
Well fortunately, this article aims to help you answer that question, by offering insights into why it might be a better idea to rent or purchase for your current situation, as well as other factors that you may not have considered yet.
Renting Provides Flexibility while Purchasing Offers Stability
In a recent article by EnlightenMe, they shared insight when they mentioned that one of the primary factors to consider when deciding whether to purchase a condo or rent an apartment, was the fact that renting offers flexibility, whereas buying offers stability. For example, if you are an entrepreneur or are still finding your footing within your career, you will need to decide whether you can realistically settle down. If you are expecting to be relocated within your company or can’t afford to miss lucrative business opportunities, and may need to move within a few months’ time, then a condo may not be your best option. However, if you are sure that you will not need to move anytime within the coming five years, then you may want to invest in a private property of your own.
Additionally, renting an apartment offers the flexibility of being able to move easily if any particular aspects about the complex, neighbourhood or general location does not meet your expectations. Comparatively, however, purchasing a condo ensures that you can stay in your new home for as long you want to. And rather than being depending on whether the owner decides to renew your lease or not, you can choose to continue living in your condo for many more years – or perhaps even rent it out for extra income when you purchase a new home.
So as you can see, deciding whether to purchase or rent a property is highly dependent on whether you are seeking flexibility or stability in your current situation. If you are unsure whether you might have to move within a few years, then an apartment complex may be ideal. However, if you are stable financially, in your career and in your family life, then consider purchasing a private property of your own within a safe, secure complex.
Consider your Family’s Needs
As the breadwinner or parent of a family, you need to consider your child or children’s current schooling situation. If he or she will need to change schools within the next year or two, then you may want to rent until then, after which you can purchase a property closer to the desired school. In fact, as a general rule, you should always plan the location in which you live around the quality of schooling for your children. It’s never worthwhile to compromise on your child’s future for an aesthetically more pleasing home, and transportation fees can become overwhelming if you want your child to attend a school that’s far away.
Furthermore, it’s prudent to purchase or rent a home that is close to where you or your partner works as well. This can dramatically reduce travel times to and from work, transportation costs associated with travelling, and can help you enjoy a little extra personal time with your family before and after work. And while the extra time may be negligible to some, others will be pleased that they can sit in less congested traffic on their way to work and home again. Remember, purchasing a property or signing a lease means that you are essentially bound to the home until it’s paid off or your lease expires, so you want to ensure the most comfortable lifestyle as possible in all aspects.
Buying vs. Renting – How you want to Build your Wealth
While many people still believe the myth that renting is more expensive than purchasing a property, The Globe and Mail reveals the truth in that you could rent a property and utilize the capital to invest in other ways instead. This is a fantastic solution for those who aren’t yet completely sure of whether they want to purchase a property or not yet, as it allows you to grow and spread your wealth amongst various investments. This way, you lower your risk, and while you may not yet own a property, your portfolio can be growing steadily, and without all your eggs in one basket.
Alternatively, if you already have a widespread investment portfolio, or don’t intend to invest your money in many other ways, then purchasing a condo is an excellent choice. Not only does investing in property guarantee you a roof over your head as you earn income to pay it off, it is also relatively risk-free if you make prudent purchase choices and acquire the right insurance package. Additionally, home-ownership offers a unique set of tax-deductibles that can shield your income and help towards mortgage loan repayments.
As such, choosing whether to rent an apartment or purchase a condo may depend on how you want to grow your wealth. If you are a serious investor who can turn one dollar into ten with wise investments, then renting may be better for you. However, if you are more eager to settle down, find a more permanent location to live and can afford to invest all of your money into a relatively stable investment, then you should consider purchasing.
If you are deciding whether to rent an apartment or buy a condo, take some time to consider how the various advantages and disadvantages of each option may affect your current and future lifestyle. If you are excited at the prospect of owning your own private property within a complex environment, however, take a look at the new launch of condo properties at PropertyGuru Singapore to discover precisely what you could be gaining if you choose to buy a condo. Remember though, that purchasing a condo is a big decision, and you should always consult professionals before rushing in head first.