Condo Living: Should You Buy or Rent a Unit?

Living in a condo seems to be the way to go these days. With more and more condominium projects being built, there are more condo options for you to choose from. So whether you would want a condominium for rent or maybe for you to buy, there’s bound to be one that’s perfect for you.

But what really is the right option for you? Buying or renting? Here are some factors that can help you decide which is better for you:

1.   How committed are you to the location?

When you buy a condo, you will find yourself committed to that location. This doesn’t only mean that you are more or less bound to stay there, but that you will also likely limit yourself to work opportunities in nearby areas.

Aside from the location, you are also going to be bound to the condo itself if you purchase a unit. Meanwhile, if you just rent, you can simply find another condo after your contract expires. This gives you the opportunity to find a better option in case you have some less than perfect experience in your current condo.

If you like the condo and the location, and you think you wouldn’t have any problems living in the area for a long time, then buying a condo is for you. But if you find flexibility to be more appealing to you, then perhaps renting is the right path.

2.   Can you afford the down payment and monthly amortization?

When you buy a condominium unit, you will have to shell out a considerable amount of money for the initial payment, as well as other incidental expenses in closing the sale. Then, you will also have to pay for monthly amortization which can be more expensive than paying for monthly rent.

If you have the financial capacity, and are willing to enter this commitment, then there’s not a lot of reason not to buy a condo unit. But if you have some doubts on your ability to pay, then it’s okay to settle with renting for now.

Aside from amortization, you also have to think about other financial obligations such as property taxes, insurance, building dues, and other special assessments that property developers pass on to unit owners.

It will be sad if you end up unable to meet your monthly payments and your condo unit ends up being foreclosed due to defaulting your monthly amortization. So make sure you reflect on your financial status before taking on this commitment.

3.   What level of ownership do you have in mind?

If you want to have your own property, then buying a condo is a great first step. Owning a landed property can be more costly so a condo unit can be a more practical option. And when you own the property, you will have more flexibility in what you can do with your space.

Meanwhile, if you are just renting, then you have certain limitations to what you can and cannot do with the condominium unit. Renovating, decorating, having guests – these are just some areas where your landlord can have control over you.

So think about what level of ownership and control you would be comfortable with so that you can assess whether it will be better for you to rent or to buy a condo unit.

The choice of buying or renting a condo depends on you

Whether buying a condo or renting one is the right choice for you depends entirely on you. The three factors above can help you decide which option is more suitable for you. So think about it well before making the decision.

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