Between owning a condominium and renting an apartment, which is better?
Are you a millennial struggling to make ends meet or a first-time homeowner unsure of the best way to spend your money?
When deciding whether to live in a condominium or an apartment, you may become overwhelmed with numerous questions.
What distinguishes an apartment or condo?
Although the facades of some condominium and apartment buildings may appear to be identical, their construction offerings are not.
Ownership
For example, the apartment building is owned by only one person, who is known as the landlord/landlady.
The occupants of the flat do not have the right to possess the space they are renting in this regard. As a result, apartments are only rented spaces for their occupants.
Examining the Advantages of Owning an Apartment or Condo
If you are the type of person that goes from place to place for personal or professional reasons, renting an apartment is the greatest option for you. However, you should keep in mind that paying for a room that you will only use for a short period of time is not a good investment to begin with.
Which one is easier to maintain?
To put it bluntly, renting a space, according to Michael Hills, Vice President of Investment Projects at Atlas Real-Estate, is like throwing money away. The only person who will profit from your hard-earned money is the landlord. Nonetheless, renting an apartment relieves you of the burden of paying for maintenance.
Do you have any lights that aren't working in your room? Are there any cracks in the walls?
Toilets that are clogged? You don't have to be concerned about them because the landlord is responsible for paying for them. You will be liable for utility repairs, unlike in condominiums.
Even though you, as a condominium owner, will be responsible for all maintenance issues in your unit, there will always be maintenance staff on hand to assist you.
On Taxes
You will not be held liable for any property taxes because you are only ‘borrowing' the space in an apartment. It is the landlord's responsibility to pay for them. Aside from that, living in an apartment allows you to avoid paying monthly homeowner fees. As a result, you will be responsible for the rental price as well as the utilities.
Is Renting an Apartment a Good Investment?
Condominiums are preferable
Although it is important to note that when renting an apartment, you only have a few expenses at your disposal, it is a waste of money on your side.
Why?
After all, it is still a 'borrowed' space. Furthermore, renting a space comes with a number of restrictions, such as the fact that you are not allowed to remodel any aspect of the room you are renting, especially if it is a completely furnished apartment.
Another factor to consider is that, with or without the approval of the apartment tenant, rental fees grow over time.
The landlords (for good reason, they are called "lords") have the authority to raise rental costs.
Condominiums, on the other hand, have set payment terms as part of your contract.
This means that if you purchased a condo unit for $3 million, it will not change regardless of what happens.
Despite the fact that every condo unit owner is required to pay monthly homeowner dues, also known as condominium dues, the benefit is that these dues are utilized for building insurance and other maintenance activities.
In contrast to residing in an apartment, your money is not protected, especially when disasters strike.
Condominiums vs. Apartments: Which is Better for Investment?
If you choose to rent an apartment rather than buy a condominium, you should be aware that your money will depreciate over time. Unlike owning a condominium, your money appreciates over time as you accumulate equity.
Furthermore, you can consider leasing your room as a source of passive income, particularly when you are not at home in your condo. As a result, when it comes to selecting the best housing alternative, it all boils down to your personal preferences.
Will you choose to buy or rent a space?
It depends on what you require at the time.
How about having a condominium?
It has lifestyle amenities.
In terms of amenities, most apartments in the Philippines lack the features and amenities found in condominiums.
A condominium like Camella Manors, for example, has swimming pools, a fitness center, a jogging trail, a clubhouse, a tennis court, and other amenities to meet your lifestyle needs.
A Safer Community
Condominiums might be thought of as a secure and safe place to reside. Camella Manors, for example, provides 24-hour security, guarded entrances and exits, and a perimeter fence throughout the region, all of which will undoubtedly improve your nighttime sleep.
You can simply notify the condominium administration to keep an eye out for your apartment whenever you are on vacation. You will be at peace while you are away in this manner.
In contrast to residing in an apartment, the landlord will typically only provide his or her tenant with two keys for security. The first key is for opening the gate, and the second is for your room. This does not, however, imply that you are safe in your residence, particularly if there are no CCTV cameras or security guards in the area.
Is renting still a better option for you?
Renting a room where everything is safe and secure will be a better option. As a result, you might want to explore renting a condominium instead.
The payment arrangements are identical to those for renting an apartment, where you must pay two months in advance as well as a deposit. The fact that you will be responsible for the association or condominium dues sets it apart.
Regardless, because you will be paying the dues, you will be able to access the condominium's facilities and perks. However, keep in mind that you are still renting, thus your money will continue to depreciate. As a result, having your own area remains the best option.
The Catch:
You must choose what is excellent and valuable for you right now. Never invest in something that would devalue your value.
You must have a strong entrepreneurial mindset, understanding that your decisions today will have a significant impact on your future.