There are two major camps, those who see renting as a total waste of money, and those who can detect the benefits. In fact, the most critical factor here is your budget and your current situation. In some phase of your life, you will find renting is the only option you have … some other case, you will have the means and you have to take a decision based on an adequate comparison between the pros and cons.
To assess your situation, you have to engage (and your partner if you have one) in an extensive exercise to gather and document all of the actual costs are associated with renting versus buying. Then list all the advantages and disadvantages of both options that you can think of. Based on this analysis, you can reach a decision. Bear in mind that both options have their downsides, but also have some benefits. Here are some of the benefits associated with renting compared to owning a property.
No upfront costs
Being able to purchase a property requires the buyer to have a down payment. For many buyers, saving up a significant amount of money for the down payment is not easy. Also, the cost of renovating the property is not included, as it is the responsibility of the property owner to hand you in a fully restored property with fully functioning appliances.
No maintenance costs
For rental properties, maintenance costs are usually covered by the owner according to the rental agreement. In those cases when the renter covers part of the price, those costs are typically small amounts and not as frequent to burden the renter’s budget.
In addition to major maintenance work, the owner is responsible for maintaining the common elements, such as the green areas or gardens, and the other exterior features.
As in the option of buying your own property, you will be responsible for all the maintenance costs, big or small.
Amenities and common elements
In most rental properties, especially in apartment buildings or gated communities, there are amenities and common elements that are available for renters usually for free or with a small fee. Amenities and common elements may include a pool, an exercise room, meeting rooms, party room and a theatre room.