When it comes to buying a condo versus renting, there are several significant decisions that you need to make along the way–but trust the process. Whether you are getting a unit for your personal use or as part of your investment portfolio, real estate is one of the biggest purchases most individuals will make so take time to weigh the benefits of either option. In this article, we explore the pros and cons of buying and renting.
What are the advantages and disadvantages of buying a condo
Income Rental
You may opt to use your unit now or put it on the market for rent. Whichever option you choose, real estate can form part of a diverse investment portfolio, in addition to savings, stocks, and bonds among others. Real estate is a valuable source of passive income, but take note that you will also have to manage the property yourself or hire a professional, such as a real estate broker to help you with the logistics of finding a renter, closing a contract, and coordinating renewals.
Over time, your property will increase in value, especially if it is located in a strategic area known for healthy market appreciation. Some examples include condos located in central business districts or close to universities or in cities seeing robust economic development. This gives you the option of liquidating your property should you choose to do so in the future.
Maintenance Costs
When it comes to buying a condo versus renting, you have the responsibility of maintaining the unit throughout normal wear and tear. Over the normal course of your property’s life, expect the unit to develop leaks, scratches on floors and walls, wobbly door knobs, in addition to fading curtains and tapestry, and the wear and tear of appliances and furniture, if you are renting out your unit fully furnished.
If you are leasing your condo, you can manage maintenance costs by stipulating in the lease contract the specific value of minor repairs to be accounted for by the lessee. Anything above that amount would constitute major repairs, and would be for your account as lessor. That being said, taking good care of your unit is a part of responsible property stewardship, so it is not so much a disadvantage as it is a necessity.
What are the advantages and disadvantages of renting a condo
Flexibility
If you need a place to temporarily live in, for example a halfway home between your permanent address and place of work, renting is the more practical option. Leasing allows you to occupy a unit with immediacy. If you purchase a pre-selling condominium, for example, you will need to wait for a specific number of years–or months at best–for the unit to be turned over.
Furthermore, with a condominium rental, you have the option to renew your lease or otherwise. Make sure to read the fine print in your contract. Lessors typically require a specific lead time for renewal, such as 60 days ahead of the end of the lease period.
Finally, just because you do not own the unit, doesn’t mean you do not have the flexibility to design it as you see fit. As a lessee, it is your right to enjoy the premises.
You can certainly discuss any limitations with the owner. For example, if you plan to drill the walls to hang paintings, you may be required to inform the lessor. Prior to moving in, some owners may even agree to repainting the walls. On that note, always inspect the unit closely for any damage that needs to be repaired to avoid issues later on.
More manageable costs
As a property owner, you are required to pay annual real property taxes as well as other taxes that come with the purchase of real estate. Not to mention, the upfront cost of buying a condo versus renting is much greater. Consider the downpayment or the money-out of a cash purchase. Most developers also offer flexible payment terms when renting a condo unit.
As a lessee, your initial payments include the advanced rent and security deposit, which will vary from one lease contract to another. Your monthly rent will also include condominium association dues, which are used for the upkeep and maintenance of the development’s common areas.
Buying a condo versus renting: A final consideration
There is no right or wrong decision when it comes to leasing or purchasing property. List down your specific requirements (What do you need in terms of the size of the unit, the number of bedrooms and parking spaces, the location, and so on and so forth), your budget limitations (Are you in the market to buy or is renting more within your reach), your short and long-term goals (Do you intend to grow your investment? Did you recently purchase a pre-selling condo and need another unit to temporarily stay in)
Ultimately, you are in the best position to decide which option suits your needs best.
Find the right property at The Fordham and Larsen Towers
Whether you are in the market to rent or buy, you can find a thoughtfully-designed condominium unit at The Fordham and Larsen Towers.
Choose from one bedroom (35 to 39 sqm), two-bedroom (54 to 57 sqm), two bedroom prime (65 to 67 sqm), or three-bedroom units (78 to 107 sqm).
Located strategically in Sucat, Muntinlupa, The Fordham and Larsen Towers offers access to main thoroughfares including the East Service Road, Alabang-Zapote Road, and Dr. A. Santos Avenue (Sucat Road). It is in close proximity to schools, business centers, and commercial centers including Alabang.
And with its generous amenities–which includes a multi-purpose court, great lawn, fitness gym, jogging path, clubhouse, function room and playground–there’s no need to go far to enjoy yourself. Furthermore, a retail row with its own premium supermarket and trusted bank is conveniently within reach to serve your essential needs.
The Fordham and Larsen Towers also provide after-sales service, secondary investment opportunities, leasing options, and attainable payment terms, ensuring a seamless experience tailored to your needs.
With all these enticing features, The Fordham and Larsen Towers certainly deliver the signature Rockwell Lifestyle with its trademark exclusivity, safety, and security.
To learn more, visit our page today!