Renting has obvious benefits over buying a condominium. Renters do not have to be concerned with the maintenance and upkeep of the structure that they call home. Apartment renters need only call the maintenance staff for any repairs that need to be made. Although they may have to wait a little while to get something fixed at least they do not have to deal with the repairs themselves. Renters also do not have to replace appliances, which can be quite costly. Depending on the area and cost of rent, they may have more location choices that falls within their price range. Over all renters have more flexibility with a yearly lease than mortgage holders who may not be able to sell quickly if they want to move.
Although renting does have its benefits, investing in property has more. When renters pay their rent, the money goes to the company that owns the apartment complex. There is no money that can come back to renters as tax deductions or equity that builds over time like condominium owners. Condominium owners also have more control over their expenses. Those who choose a fixed rate interest loan will have lower housing expenses over a longer time, even taking into account the association fees. Apartment dwellers have very little control from one lease to the next what their rent will be and can be modified dramatically if the company changes hands or if the economic climate changes. As payments are made for condominiums, the equity continues to increase. If a condominium owner needs to they can refinance their mortgage to either cash-out the equity for an emergency or other financial need or can do so when ready to retire to lower their overall expenses.
The investment benefits of owning a condominium are greater than that of renting an apartment. But having a mortgage is a big decision and should not be taken lightly. Doing further research on mortgages, interest rates and what is available for the area will help in the decision process. It is also important to consider the length of time that is planned for living in the condo. The advantages to owning a condominium will happen only over the long term as equity builds.
