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Renting vs Buying a Property

Moving home is a huge decision, whether you’re renting or buying a property. There is so much to take into consideration, including the area, the property itself and your budget. If you have the choice between renting and buying, you’re in a great position, many people don’t have this choice, and their budget forces them to choose a rental property. However, just because you can afford to purchase a property doesn’t mean it’s the right decision. This article discusses the benefits of renting and purchasing a property, so you can decide which option best suits your situation.

Freedom to move

Choosing an area to live in can be challenging; if you’re moving because of a new job and aren’t sure about the new location, renting a property is a great choice. You can rent for a limited period to check out the local area before purchasing a property. Perhaps you’re not sure how your new job will work out and want to give it a few months before committing to staying in the role; again, this situation is perfect for renting. You won’t be tied down if you choose a property with a short lease agreement. Buying a property is costly and takes a lot of time; if you buy a property in an area you’re not sure about, it can be hard to sell the house again without waiting for a few years. You could lose money as you’ll need to pay solicitors’ and estate agent fees. If you’re ever unsure if a move will be permanent, it’s best to rent to give you that freedom to move if needed. Then, you can always buy in the future if you decide it’s the right area.

Upfront costs

The upfront costs associated with renting and buying a property are completely different; when you rent, you will need to pay a deposit and some small fees compared to buying. To purchase a property, you will need to pay solicitors and have enough money to put down a deposit to secure the property and your mortgage. The minimum deposit is usually around 10% of the property’s value, depending on the mortgage provider. You will need to save up this money yourself in order to purchase a property. If you simply don’t have a large sum of money to use as a deposit, renting will probably be the best option. 

Furniture costs 

When searching to find an apartment for rent in Hong Kong, you’ll notice that many apartments are listed as fully furnished. This means as part of the price you pay, all of the furniture will be included. When you buy your own property, you won’t get any furniture included unless you have agreed on this as part of the purchase. You will usually need to buy all the furniture and decorations yourself, which can be very costly. For travellers without spare money to buy expensive furniture, a fully furnished apartment can be the perfect rental. People often find it more affordable to pay a bit more monthly rent than to buy furniture upfront. Plus, they don’t need to pay for removals or store it anywhere if they move again.

Maintenance and decoration

The maintenance of the purchased property is all down to the owner. They are responsible for anything that goes wrong and the cost associated with problems. However, if you’re renting and have issues, you can contact your landlord, who will be required to fix the problem and pay for the maintenance of the property. When it comes to decoration, those in rental apartments often feel frustrated that they can’t decorate their home the way they want. This is a benefit of owning your own property; you can decorate all of the rooms to your preferred style. However, you also need to pay for this decoration, which can be very expensive.

Pets

For some people, a house is not a home without a pet, whether a dog or a cat. Many rental properties won’t allow you to have pets; if they do, they might charge extra or put measures in place that can alter your agreement. When you own your own home, you can have all the pets you want within reason and as long as you stick to the law. If you already have pets and want to move to rental accommodation, it can make things challenging and significantly narrow down your options. 

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