Thursday, May 22, 2014

3 disadvantages of renting property

When it comes to living arrangements, there are two general options to choose from: owning a home and renting. Both have their own sets of pros and cons. It all depends on your lifestyle and living preferences. 

Renters miss out on several homeownership opportunities and added value. 

Renting a house or condo will involve several drawbacks compared to owning a home. 

1. Renters miss out on homeownership

Buying and renting a house or condo both involve making monthly payments—the former for mortgage loan payments and the latter for rental fees. However, when buying a home, the amount you pay every month is a step towards owning the property. After you’ve settled your mortgage loan, you can rest assured knowing that you don’t owe on the property anymore. 

You also have the benefit of enjoying any appreciation or growth in the value of the property. After several years of substantial growth, you could sell the property at a higher price and gain profits from the sale. 

Renters will miss out on these opportunities of homeownership and added value. 

2. Security deposits

Landlords typically charge renters security deposits. This security deposit is the landlord’s protection for unforeseen damages that may befall the property. As a renter, no matter how well you take care of the property, unexpected damage may still occur. 

While security deposits can be refunded once you move out of the property, there is no assurance that you won’t lose some or all of it. This amount is another trade-off you face as a renter. 

3. Decorating and renovating

When renting a house or condo over the long term, you may want to redecorate or renovate the space to make it more livable or reflect your personality. Landlords may, however, have rules and restrictions regarding which parts of the condo you can change. This limited freedom on decorating options is a trade-off in itself. 

Aside from that, any improvements you make to the property will be left to the landlord once you move out. Renters often miss out on the value-adding improvements and renovations as compared to homeowners. 


Previous Next

Share
Email

Top Articles

Small spaces: Decor t...
Need a little more leg space in your living room? Use scaled-down sofas, arrang...
Home decor: Tips to c...
Even if you’re on a tight budget, it’s possible to completely transform a room ...
Buying Lots in Valenz...
Our partner is buying several properties in areas in Valenzuela, Quezon City, B...
Tips for designing th...
With imagination and clever design, you can encourage your family to spend more...
Buying Lots in QC, Va...
Our partner is buying several properties in Quezon City, as well as the cities ...
More property news...