You’ve probably been told before that renting an apartment is a waste of your money, as opposed to buying a condo unit. The usual argument given by those who advocate buying over renting property is that you’re practically just giving away your money when you rent whereas you’re actually investing it when you buy property. But there are actually situations where renting is, in fact, a better option. It may be a good idea for you to learn about the advantages of renting an apartment unit rather than buying one.
Apartment Rental Benefits
You probably already know what the disadvantages are of renting an apartment. It’s time to check out the advantages.
It generally costs a lot less to rent an apartment as opposed to renting a house. Rental fees are also generally a lot lower than the cost of buying an apartment, especially if you’re looking for a place in a major city like Cagayan de Oro. Note as well that the cost of renting an apartment unit is significantly lower than the cost of buying a condo unit. It is also more cost-effective, since apartments are usually more spacious than condo units. And the down payment you need to shell out is considerably less than the down payment required for buying property.
When you rent an apartment, you also save yourself from having to pay for such things as building inspections, insurance, and other legal requirements. There are even apartment complexes where the cost of utilities is included in the rental fee, which makes it more convenient for you, as you will no longer have to worry about such additional costs.
2. Tax Benefits
When you buy property, you’ll have to take care of transfer taxes; not so when you’re just renting. When you already own the property, you’ll have to pay an annual property tax; not so with a rented apartment. So, you see, the property may not belong to you regardless of how long you live there, but you’re still saving a significant amount of money when you choose to rent rather than buy.
Perhaps one of the biggest advantages of renting an apartment is that you’re free to leave whenever you want, provided all your obligations are taken care of. If you find a better place or an apartment nearer your workplace, you can transfer anytime you want. If your work takes you to another city, you can vacate your rented apartment immediately and look for a rental in the new city where you’ll work. You won’t have to worry about selling the place or agonize over such stuff as current market value.
When to Look for a Cagayan de Oro Apartment for Rent
Of course, there are situations where it is better to buy a house or condo unit than rent an apartment. You’ll have to carefully weigh your situation to determine which option will work best for you. As a general rule, it is advisable for you to opt for finding a Cagayan de Oro apartment for rent if any if the following applies:
1. Your work brings you to Cagayan de Oro for a couple of years.
If you know you won’t be living in Cagayan de Oro for that long, then it is definitely better to rent an apartment than buy property. The hassle of buying property and then selling it afterwards is just too much if you’ll only be using it for, say, two years. It is more practical to simply rent an apartment the duration of your stay in the city based on your agreement with your employer. If you need to extend your stay, it’s easy enough to do so and just as easy to leave when your work brings you somewhere else.
2. The cost of buying property is too high.
Do your research to determine how much it costs to buy a house or condo unit in Cagayan de Oro. Make sure you consider not just the asking price, but also such things as processing fees and taxes. Compare the cost to your current income. Will you be able to take care of all the required up-front payments (processing fee, down payment, etc.) without compromising any of the regular expenses you still have to take care of (utilities, food, etc.)?
Consider as well the monthly payments you’ll have to make on the property. How long will you be paying that amount on a regular basis? Can you realistically afford to keep up with the payments? How stable is your source of income? If the prices of basic goods and the cost of utilities increase in the near future while your income remains the same, will you still be able to afford the monthly payments on the property? If your answers to these questions indicate that it will be difficult to keep up with mortgage payments, it may be best to forego buying and just rent an apartment instead.
3. You have plans of emigrating.
Let’s face it. Many Filipinos dream of emigrating for one reason or another. If you are one of those people who plan to relocate to another country in the future, it may not be a very good idea to buy a house or condo unit, especially if you plan to emigrate soon and have no plans of coming back to the Philippines anytime in the near future.
When you make the decision whether to rent or buy a place in Cagayan de Oro, remember that your decision needs to be grounded in reality. No matter how difficult it is to face the reality of our situation sometimes, this step is necessary to ensure that the decision you make is one you won’t regret. The good news, if you opt to rent an apartment, is that there are many good places to choose from in the city. Of course, if you really want to buy your own place, that’s your prerogative; just remember that renting an apartment isn’t necessarily akin to throwing money away.