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In-Depth Look at Buying a Condo vs. Renting an Apartment

The basic difference between a person buying a condo and another renting an apartment is ownership. If you chose to buy a condo at Eighty Seven Park Miami, it means that you own that property and you have the right to access the amenities and surrounding property

Renting an apartment, on the other hand, means that you don’t own the apartment. Instead, you make regular rent payments through a rental agreement between you and the property owner.

If you are shopping for a home at Eighty Seven Park, you need to understand the pros and cons of buying a condo and renting an apartment if you want to make the best decision.

Advantages of Owning a Condo

  • When you own a condo, you are able to customize your home to your preferences. You can choose your décor, the lighting, and the overall design of your home.
  • You require less maintenance on your home since such duties fall under the Homeowners Association (HOA), which is convenient for many buyers.
  • You also have a say on bylaw and regulations that govern the place you live when you buy a condo.
  • Monthly mortgage repayment cushions you from worrying about the ever-rising house rental rates and reduces your debt. Since the repayments for a condo are fixed it’s easy to plan your monthly budget.
  • If you are a homeowner, you get to enjoy tax exemptions that renters don’t, which is a plus for your finances.

Disadvantages of Owning a Condo

  • The entire approval process for a mortgage loan can be tedious and time-consuming; the verification and documentation process is nerve-wracking especially if your credit score is not good.
  • Owning a condo exposes you to a lot of additional expenses. Together with monthly mortgage payments, condo owners are required to pay monthly fees for parking, contingency, insurance and maintenance of the building. Condo fees do not build your equity because this money never comes back to you.

Advantages of Renting an Apartment

  • Flexibility

If the location or property doesn’t match your needs, you can move to another place without incurring penalties. You have the opportunity to live in an area before making a decision about whether you want to live there or not.

Many people who are working might need to take up a new job from time to time, which requires them to change cities. In case you own a home, it forces you to sell it and this might take much time.

  • Initial cost

If you’re renting an apartment, you only need a rental bond equivalent to one or two months’ rent as the initial cost making it more affordable to many. You can use this as a way to reserve cash for a mortgage deposit in the future.

  • Easy process

Renting an apartment is much easier than buying a condo. The approval to rent an apartment is simple and fast as compared to the cumbersome process of getting loan approval for a mortgage. If you are in a quick need for a place to live, renting will serve you best.

  • Maintenance costs

Maintenance of apartments is the sole responsibility of the landowner. For instance, if you have a broken sink, you just have to report and have it fixed.

Disadvantages of Renting an Apartment

  • Lack of privacy

The fact that you don’t own the apartment means that a landlord can inspect your house with prior notice, which diminishes your privacy.

Bear in mind that a landlord has the right to enforce certain rules on you when you rent a house. Some apartments may have restrictions on your interior décor, and you risk a penalty for such a violation.

  • Leasing issues

When you live in an apartment, you might have to bear with an unpredictable yearly increment in levies, which is an inconvenience to your spending.

  • No ownership benefits

Living in an apartment and paying rent does not give you any ownership rights to a property. The rent payments do not go toward helping you acquire an asset, unlike a condo.

When deciding on whether to buy a condo or rent an apartment, consider your goals for the next five to ten years. If you’re ready for the financial commitment that comes with a condo and is sure of steady income, then take the plunge and check out Eighty-Seven Park condominiums for sale to get the best offers.

Renting could be better for you if you expect some major life adjustments that will force you to move, for instance, a job transfer, marriage or divorce or if you are not financially ready to invest in a condo.