Choosing to buy or lease a condominium unit has its respective pros and cons. The option you choose to go with will be highly dependent on your unique real estate needs. For that reason, it pays to plan carefully to make the property searching process more efficient.
Consider your personal requirements, then curate a streamlined list of property options for viewing before proceeding to sign the lease contract deed of absolute sale. In this article, we share real estate investment and leasing tips to guide you in the decision making process.
Must I buy or lease a condominium unit?
The benefits
Investing in real estate provides several benefits. First, it allows you to diversify your investment portfolio. Real estate appreciates in value over time. In fact, it can even outperform stocks and bonds during a recession. Second, real estate provides a source of passive income. Even if you initially purchase a condo unit for end use, you always have the option to lease it out later on.
On the other hand, opting to lease a condominium unit can be a more viable option as far as flexibility and cash flow are concerned. Perhaps you are looking for a halfway home. This is particularly true if you need to cut your commute time to the office, or if a work contract requires you to be located near your assigned area. In some cases, a company will even cover housing expenses.
If you are a newly-wed couple, leasing a starter home is a practical option to buying a bigger space once you choose to grow your family. With lease contracts covering as short a period as one year, you can move out once you are ready, or renew your contract as needed.
Another benefit for lessees is smaller overhead as far as property management is concerned. The biggest costs of maintaining a property including real estate taxes and major repairs are all covered by the owner. Lessees cover repairs so far as they are within a specific amount determined in your lease contract.
The considerations
Whether you choose to pay for a property in full or through a bank loan, purchasing property requires bigger upfront costs. This includes the reservation fee, down payment, and standard government taxes. These taxes include value-added tax (VAT), transfer tax, documentary stamp tax, and the registration fee. Other expenses involved in the transfer of property will also be covered by the buyer. Lastly, you will also be required to pay the annual real property tax (RPT).
The unit will also undergo natural wear and tear over time. As the owner, you will need to conduct repairs and maintenance to keep the unit in working shape. If you do lease out your unit, the standard security deposit paid by your lessee is intended to cover any damages that may have been incurred during their stay.
On the other hand, lessees must also consider the limitations of renting property. As a lessee, you do not benefit from the value appreciation that comes with property ownership and have limited control over the property. For example, alterations to the interiors may be restricted, and contracts may require you to return the unit in the same state it was when you moved in. In some cases, lessors will allow improvements with their consent. However, some contracts may require you to leave these improvements behind. So if you replace the kitchen sink with a brand new basin or install black-out curtains, these may form part of the property once the lease period ends. To avoid any surprises, always review the lease contract in detail and clarify or negotiate any points before signing.
Finding the right property for you
Now that you have determined whether to buy or lease a condominium unit, it’s time to peruse the market for a property that fits your needs.
Location
The location of a property is one of the most important practical considerations for a buyer or lessee. Personal requirements such as proximity from your place of work or your children’s schools all inform that decision. But so does the proximity of the community to main thoroughfares as well as key locales including medical facilities, leisure spots, malls, and places of worship. Conducting an ocular of the area can help you better assess its accessibility to roads and establishments.
Unit type
Determine the square footage and number of bedrooms required for your needs. Practical factors also come to play when looking at unit types. For example, if you have senior family members with limited mobility, consider a flat unit versus a condominium with a loft. Moreover, when inquiring about a property, ask about the number of parking spaces included should you have a need for these.
Amenities
The availability of a wide range of amenities makes a development more attractive. When viewing the property you are interested in, make sure to explore the amenities. Apart from the pool area, are there other facilities for sports and physical activity such as a gym? Some developments may even include an indoor and outdoor court and dance studio. Are there facilities for any younger family members such as a playroom or daycare center? Are there pocket gardens and amenity decks? Whatever your household’s needs, make sure that the development you choose is equipped to meet these.
Security and Privacy
Finally, whether you choose to rent or purchase, the safety and security of a development cannot be emphasized enough. Ask about the provision of CCTV cameras, security access, and availability of 24-hour security personnel. This ensures that you can fully enjoy your new home with peace of mind and a sense of privacy.
The right time to buy or lease a condo is the time you find a unit that addresses all your property needs.
And finding a property that bears the signature Rockwell lifestyle is easier with Rockwell Leasing and Secondary Sales. You can find and compare various property options for lease and resale to fit your unique lifestyle needs, space requirements, and budget.
And whether you require a studio or a four-bedroom unit, you can be assured of the same level of exclusivity, security, convenience, and accessibility that is the hallmark of every Rockwell community.
