Which is better: rent an apartment or buy

Everyone has thought about their own home at some point. In large metropolitan areas, when deciding on the issue of personal space, residents are divided into two “camps”.

Some people think it's better to rental housing, which you like, others prefer to buy the cherished square meters. About what is more profitable, to buy an apartment or rent, we will discuss in this article. 

Pros and cons of buying an apartment

If you think it is better to rent an apartment or buy, with a greater inclination towards the second option, we recommend weighing all the positive and negative aspects. Let's start with the pros:

• The purchased living space will be OWN, you will not need to pay extra for the rent, no one will claim your meters. You just need to pay utility bills on time and enjoy the comfort.
• You can make repairs in the apartment according to your individual tastes and even start redevelopment if it is convenient. You can also develop your own interior design without anyone's permission.
• You can select furniture and interior items to suit your taste with the expectation that nothing in the future will need to be transported from one home to another. For example, calmly buy large-sized appliances and install built-in furniture without fear of damage due to constant moving.
• You can have pets in your personal apartment and invite guests and relatives at any time - you do not need permission from third parties.
• A personal apartment can always be rented out, then real estate will become a source of permanent income.

Before you finally decide whether to buy or rent an apartment, understand the cons of purchasing.

• Price. Modern apartments, even new economy class buildings, are quite expensive, especially in large metropolitan areas. Even if you want to purchase housing in installments from the developer, you still need an initial capital of 30%, or better, more, then housing will be more profitable in price. There is an option to get a large loan from a bank, but there is a risk of refusal. And if the loan is approved, in addition to the main debt, you will have to pay the accrued interest.
• There is a risk of making a mistake with the choice of purchase. It seems to choose an apartment and make a deal. However, there is a high risk of fraud in the secondary market, and new housing often goes into long-term construction status. In addition, in the process of living, shortcomings may appear, for example: in a new house there is very strong audibility, and in an old building there are bad pipes and electrical wiring. By the way, if you decide buy a house in Kyiv, we recommend contacting the best luxury real estate agency THE Capital.

If you are thinking about renting or buying an apartment, pay attention to the following:

• Choose your builder carefully when considering options for new builds.
• Carefully check the "transparency" of the apartment if you liked the object on the secondary market.
• Keep in mind in advance that regardless of the choice, you need to make repairs in the purchased apartment, and this is an additional expense.

Also, with the question of what is more profitable, to buy or rent an apartment, experienced specialists from THE Capital will help you figure it out in more detail.

Read more:: What is self-construction and how to legalize it?

Advantages and Disadvantages of Renting a Home

Many cannot afford to buy their own home. Some do not have financial resources, while others are planning to move to another city or are considering renting an apartment for other personal reasons. Why is it more profitable to rent an apartment? There are several advantages to note:

• The modern rental housing market is huge - you can find any apartment in any area of ​​the city at a price that matches your budget. At the same time, many rent out real estate already fully equipped for a comfortable stay - there is furniture, dishes, appliances. Therefore, you do not need to spend money on the arrangement, it is enough to have personal belongings.
• Renting gives freedom. For those who do not like to get used to one place, the question of whether to buy an apartment or rent it disappears by itself. If you are tired of the premises, the circumstances have changed or the neighbors are not satisfied, you can always easily find a new home - the choice is huge. But moving out of your own apartment is not easy - the process is very long and financially costly.
• Renting does not require the cost of equipping the apartment. Of course, the cost of renting housing, for example, in Kiev, is quite high. However, it is not comparable with the cost of a secondary property or a new apartment, even if paid by installments from the developer. Therefore, after paying the rent, you can always spend the remaining money at your own discretion, and not engage in repairs, the purchase of furniture, equipment or other activities related to the arrangement of premises.

Read more:: Where is it better to buy an apartment: in a new building or on the secondary market?

Cons of renting a home

• When offering to rent an apartment, the owners ask for a deposit, as a rule, payment for 1-2 months. The landlord needs a large amount in order to protect himself from the loss of tenants and to be sure of the sufficiency of funds if the property is suddenly damaged. In this case, you will involuntarily wonder whether it is profitable to rent an apartment, since this deposit is not refundable in case of a premature departure, and this fact is prescribed in the lease agreement.
• As soon as prices in the rental market go up, so does the rent. In this case, you need to stipulate this point in advance and indicate it in the contract.
• In addition to rent, you will have to reimburse utility costs. Therefore, utility bills are added to the principal amount that gives the right to live. Note that the prices for utilities are periodically increasing.
• If there are difficulties at work or other circumstances that entail unforeseen costs, it is not always possible to agree with the landlord about the transfer of payment.
• There is no certainty about the future. Some people need to have their own home to be sure that no changes will lead to unexpected eviction.

What is better, to rent an apartment or to buy? It is impossible to give a definite answer. Much depends on the financial capabilities and personal circumstances of the person. In any case, if you need to buy or rent an apartment, you can contact our experts for professional support. Subscribe to our updates real estate portal and get the latest publications from the real estate agency THE Capital.