Should you buy an apartment or rent? – this is an age-long debate for chatgaiyas. While both decisions have their perks and cons, which one is actually the more sensible decision?
To find the answer to this, there are a lot of factors to consider. From financial stability to the extent of planning, you need to consider everything. So, to resolve this dilemma and help you with making the perfect decision for you, we have come up with this blog. In this blog, we will guide you through different scenarios based on the factors that may affect your buying vs renting decision. Stick till the end and hopefully, you will find your desired answer to this fairly complicated query.
Factors that Affect Renting vs Buying Decision
To come to a decision regarding whether you should rent an apartment or just buy it, some associated factors need to be considered. Let’s discuss these first before jumping into the decision scenarios.
1. Your Financial Condition
Before deciding if you want to buy an apartment or continue renting, you need to evaluate your financial situation and check if you’re ready to purchase or not. Buying a home is a long-term investment. It gives you ownership rights to the property which you can’t get while renting. So, it is a big decision to make.
You need to make sure that you can make an adequate down payment and a good credit score to apply for a loan if you want to buy it that way. If you have a hefty amount of savings and a fairly good income to debt ratio, you may consider buying as a better option than renting.
2. Cost of Renting and Buying
Depending on the area of Chattogram you are targeting, you need to evaluate the mathematical costs of buying compared to renting. If you are keen to stay in a particular area for a longer period and that area has a higher rental value, you may consider buying an apartment there if you can afford it. However, if the rental value is cheaper in proportion to the approximate cost of purchasing an apartment, renting may be the stand-out option.
Nowadays, banks provide home loans at a minimum interest rate. So, the cost of buying an apartment in Chattogram through a home loan is relatively lower than before.
3. The Lifestyle that You Fancy
If you fancy a life in which you want to move from place to place like a nomad, buying an apartment isn’t for you. If you are the chatgaiya who has decided to settle down and raise a family, buying an apartment is an optimal choice. As your choice develops further, the rent, as well as the cost of an apartment, will go higher. So, if you fancy owning an apartment that comes with status benefits, you may want to decide between buying sooner.
4. Probable Risk Factors
Both renting and buying decisions have associated risk factors with them. If you fail to pay the rent or your landlord doesn’t like you for some reason, there is a high chance that you will get evicted and need to look for places. Whereas, in your apartment, you are your own landlord. So, you don’t need to worry.
On the other hand, if you buy an apartment, you need to pay the taxes and finance all the repairs and maintenance works by yourself. That is an additional responsibility. Also, if you’ve taken a home loan and fail to pay the mortgage, it may hurt you.
Why and When Should You Rent?
If you’re low on money and don’t see yourself settling down, probably renting is the optimal decision for you. In that case, your monthly costs will be fixed and you won’t need to bear the additional expenses regarding the place you live in. The money you’ll save can be invested elsewhere or you can pay your debt off from that if you have any.
Usually, at the start of your professional career, you may want to rent. As there will be no particular reason to settle down and you’ll be keen to explore different areas of the country, buying an apartment may not be the right choice at that time.
Why and When Should You Buy?
The feeling of ownership and freedom that comes with buying an apartment can’t be compared to renting at all. Buying an apartment is an accomplishment and a sign of social status. It shows that you’ve done all the hard work to place yourself in a better situation. It is also a long-term investment for you and your family. So, having your own roof for you and your family is a thing to consider.
As the country is developing, places in Chattogram are supposed to go up in value as time progresses. So, investing in a home property right now is a very good choice as the value of your apartment will go up in the future.
When you are somewhat settled in a position, you’re done with exploring and want to enjoy life with your loved ones, that’s the right time to buy an apartment. It is a permanent living arrangement that you create and pass on to your family after a certain time.
So, it’s time to pop the question. Which is better – Renting or Buying? Well, after evaluating all the factors, we lean towards buying. Yes, renting has its own perks and benefits; however, buying an apartment gives the assurance of having a roof over your head and the freedom everyone cherishes.
Buying a piece of real estate is a great choice from an investor’s perspective as well. In a developing country like Bangladesh and a city like Chattogram, the value of your apartment will be much higher than your purchase price.
We hope that we came in help. Best of luck in your future endeavors.