To rent or buy property is consistently up for debate and both have their pros and cons. There are professional opinions that differ and background context when thinking about renting versus buying. Ultimately an individual decision must be made, but financial and long-term value should be considered as big factors that can influence a decision. We strongly believe that buying provides the most financially stable option while also providing an ideal investment and large possibility of increased resale value. We want to look at the two biggest aspects that influence British Columbians to buy a condo or rent an apartment:
- Ownership: Ownership is an aspect that immediately comes to mind when looking at buying or renting. An apartment is typically owned by a company or private individual who controls the entire property, whereas a condo can be bought and sold. Apartments are maintained by a landlord who manages the taxes, insurance, maintenance and sometimes utilities. “The Residential Tenancy Act requires landlords maintain their rental properties in a state that is suitable for occupancy – they must meet housing, safety and building standards required by law, (source).” Whereas when you own a condo you have increased responsibility for your property but also still have “shared ownership of the land, building and common areas. You share costs with fellow members of your condo association, and the board of directors or a property management company makes the big decisions, (source).” This allows for buyers to have the freedom to renovate, paint the walls and put up permanent pictures without having to ask a landlord. This customization is incredible appealing to buyers of all age brackets and walks of life.
- Cost:In terms of upfront costs, apartments are typically cheaper, but this is only in the short term. Consider this. Each month you pay your rent, you are paying someone else’s mortgage. After a few years, they have more equity in their property and you have… paid that equity for them. And any upgrades you want have to be approved by your landlord, and depending on the type of upgrade, are going to be owned by the landlord. If you have the means to, why not invest in yourself rather than someone else? “Although you may live in your condo unit for years, there will come a day when you will want to sell. So don’t overlook the value of smart upgrades. If you’re buying a new suite, consider requesting stainless-steel appliances and granite countertops, hardwood floors, and quality lighting, (source).” Condos, by nature, have monthly maintenance fees but these fees are set in place to ensure buildings are updated and kept well maintained. “By law, a portion of those condo fees goes into a reserve fund. When the property is well managed, this fund covers major repairs like replacing windows and roofing without additional costs to owners. Even when the reserve fund falls short, you’re not in it alone — a “special assessment” will be done and costs will be shared equally among owners, (source).” Condos provide a significant investment opportunity you can put into yourself versus money in someone else’s pocket. “Once the mortgage is paid off, the condo owner can begin saving, (source).”
Overall, purchasing a condo can give you the security and community that apartment living provides but with the increased appeal of ownership, freedom, and profiting off resale value. Go to our website to gain some insight into why buying a condo is more beneficial and how we can find the perfect property for you: http://www.pembertonholmes.com/