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Thinking about living in a condo? Whether you decide to opt for this type of housing because of the little maintenance it requires or because of your desire to live in a smaller space, a question remains: should you rent or buy? As this is a very important decision and will have a considerable impact on your finances, take the time to read the following!
Buying a Condo: Why is this often the best option?
- The cost of a mortgage is often equal to the cost of a lease
You only have to take a brief visit to a site of condo listings for rent to realize that the monthly cost of renting is often equivalent to that of a mortgage payment. This seems to clearly indicate the value of buying rather than renting.
So, what about the costs of buying a property? These are important: down payment, notary fees, transfer duties, pre-purchase inspection fees and many others. Of course, once these costs are combined, the whole thing represents a considerable sum that not everyone has at hand.
While this may be a disincentive and suggesting the value of renting rather than buying, there is an important point that many of us do not know: part of these costs reserved for buyers are in fact passed on to tenants in the price of the rent (apart from condominium fees for owners). So here you are paying as much as a buyer to house you, without however having the advantages of being an owner, the most important of which is obviously to be able to possibly recover your investment.
- Your property will appreciate
The purchase of Canninghill Piers new condo will allow you to increase the value of this property, which is all true if you invest a part of your savings to renovate it and maintain the premises properly. Indeed, fairness is certainly one of the greatest benefits that a homeowner can enjoy. Moreover, the fact that your property is growing in value over time will be an asset, whether you decide to sell or leave the property as an inheritance.
- You have decision-making power
Being the owner of a condo allows you to have some decision-making power with regard to the layout of the premises or with regard to the renovations that will be carried out on the building. Thus, if you have a point of view to make heard, it is very likely that your opinion will be considered.
However, if you are a tenant, making your opinion heard will not result in any changes. Even if your concerns are legitimate, you have no guarantee that concrete changes will be made. All will be left to the discretion of the owner and his goodwill.
- Your housing costs will not fluctuate
The buyer has the advantage of paying the same amount to stay from one year to the next, which is not the case for the tenant. Indeed, the latter will see its rent increase, although the modalities of this increase are legally regulated and tenants are better protected than in the past against excessive increases.
- Condo rental: a more advantageous option for retirees
The role of owner gives you the chance to have a say in how your money will be spent. In addition, everything you have invested in housing costs will pay off, all without spending much more than a tenant.
Nevertheless, it seems that this is not always the best option. Indeed, if you are retired, it is likely that you do not intend to sell to buy something else. By doing so, it will logically be impossible for you to take advantage of the increased value of your property at the time of resale. In addition, if you buy in your sixties and decide to sell at the age of 80, it will be difficult for you to make an interesting profit margin.
Of course, if the prospect of selling is not part of your plans, being a tenant is certainly a wiser decision. What’s more, it will save you from paying condominium fees as well as taxes during a period of your life when your income is lower. In addition, the rental will save you from having to pay out of your own pocket to carry out renovations in your home should it prove necessary.
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