What is better: to rent or buy an apartment

Everyone once thought about their own home. In large megacities, when solving the issue of personal space, residents are divided into two "camps".

Some believe that it is better to arrange housing rent, which you will like, others prefer to buy cherished square meters. We will discuss in this article whether it is more profitable to buy or rent an apartment.

Pros and cons of buying an apartment

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

• The purchased living space will be YOURS, you will not need to pay extra for the rent, no one will claim your meters. You only need to pay utility bills on time and enjoy comfort.
• You can make repairs in the apartment according to your individual preferences and even start a redevelopment, if it is convenient. You can also develop an interior design yourself without any permission.
• You can select furniture and interior items to your taste, with the expectation that nothing will need to be transported from one home to another in the future. For example, you can calmly buy large appliances and install built-in furniture without fear of damage due to constant moving.
• In a private apartment, you can have pets and invite guests and relatives at any time - you do not need the permission of third parties.
• A private 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 disadvantages of the purchase.

• Cost. Modern apartments, even new economy-class buildings, are quite expensive, especially in large cities. Even if you want to buy housing on payments from the developer, you still need an initial capital of 30%, or better, more, then the housing will be cheaper in price. There is an option to take out a large loan from the bank, but there is a risk of refusal. And if the loan is approved, in addition to the principal debt, accrued interest will have to be paid.
• There is a risk of making a mistake with the choice of purchase. It seems, choose an apartment and draw up an agreement. However, there is a high risk of fraud in the secondary market, and new housing often turns into long-term housing. In addition, defects may appear in the process of living, for example: in a new building, the sound is very loud, and in an old building, pipes and electrical wiring are bad. By the way, if you decide buy a house in Kyiv, we recommend contacting the best elite real estate agency THE Capital.

If you are considering whether to rent or buy an apartment, pay attention to the following:

• Choose a developer carefully when considering options among new buildings.
• Carefully check the "transparency" of the apartment if you like the object on the secondary market.
• Take into account in advance that, regardless of the choice, repairs must be made in the purchased apartment, and these are additional costs.

Experienced specialists of THE Capital will also help you understand the question of whether it is more profitable to buy or rent an apartment.

See also: What is self-development and how to legitimize it?

Advantages and disadvantages of renting housing

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

• The modern housing rental market is huge — you can choose any apartment in any part of the city at a price that fits your budget. At the same time, many rent real estate that is already fully equipped for a comfortable stay — there is furniture, dishes, and appliances. Therefore, there is no need to spend money on arrangements, it is enough to bring personal things.
• 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 one falls away by itself. If you are tired of the room, the circumstances have changed or the neighbors are not happy, you can always easily find a new home - there is a huge selection. But moving out of your own apartment is not easy - the process is very long and financial.
• Rent does not require expenses for the equipment of the apartment. Of course, the cost of renting housing, for example, in Kyiv, is quite high. However, it is not comparable to the cost of a secondary apartment or a new apartment, even in installments from the developer. Therefore, after paying the rent, you can always spend money at your own discretion, instead of doing repairs, buying furniture, appliances, or other activities related to arranging the premises.

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

Minus housing rent

• When offering to rent an apartment, the owners ask for a deposit, as a rule, payment for 1-2 months. A large amount is needed by the landlord 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 if it is profitable to rent an apartment, since this deposit is not returned in case of early departure, and this fact is written in the lease agreement.
• As soon as prices on the rental market rise, so do rents. In this case, you need to discuss this point in advance and indicate it in the contract.
• In addition to the rent, you will have to reimburse the costs of utility services. Therefore, housing and communal services bills are added to the principal sum that gives the right to residence. It should be noted that prices for communal services periodically increase.
• If there are difficulties at work or other circumstances entailing unforeseen expenses, it is not always possible to agree with the landlord on the postponement of the payment.
• There is no certainty about tomorrow. Some need to own their home to be sure that no changes will lead to an unexpected eviction.

What is better, to rent an apartment or to buy? It is not possible to give an unequivocal answer. Much depends on a person's financial capabilities and personal circumstances. In any case, if you need to buy or rent an apartment, you can turn to our experts for professional support. Subscribe to our updates real estate portal and receive the latest publications from the real estate agency THE Capital.