Renting vs buying analysis, which one is more profitable? You can listen to this article to the end! Renting and buying is a topic that is difficult to solve.
That’s because renting and buying property has its own advantages and disadvantages. Until now, renting and buying a house is a topic that is hotly discussed not only among parents but also young people.
The debate occurs when some people think buying a house is better because later the house can be theirs. Property rights to the house make it free to live and put things in one place. Some are better off just renting a house because they have high flexibility.
Especially for those who travel on business or work frequently moving places. Then the analysis of renting vs buying, which one is more profitable? So that you have no doubts, let’s see the explanation below!
Buying and Renting Profitable Analysis
Not only for homes, but it is valid for various kinds of another properties. There are apartments, condominium and so on. To do an analysis of renting vs buying, which one is more profitable? Let’s see!
The house is a property that is much discussed. That’s because everyone needs a house for dwelling, so that makes house rate increases from time to time. Buying a house is the biggest financial decision to make in life. You have to consider things carefully, especially if you live in the house alone.
The advantage of buying a house is that it provides great privacy. Homeowners are free to do whatever they want with their home. Home investment promises to be resold and if it is rented out, there will be more enthusiasts. The advantage of renting a house is that you can easily move from one place to another.
While talking about disadvantages, the cons of buying your home are tied to a long term commitment. There are many additional costs that must be incurred. You have the responsibility to maintain and care for the building.
Even you have to fix the broken parts. If you rent, the disadvantage that can be obtained is that the rental price can increase many times, especially if the demand of house is much.
Land prices are increasingly expensive and limited, especially in urban areas, while the need for housing is increasing. This is what makes people shift and prefer vertical housing. Apartments are property investments that can generate passive and promising income. Apartment values can increase from year to year. Apartments are also easy to sell or rent back for investing.
The advantage of renting an apartment is that it is easy for you to reach one place to another because the apartment is in a very strategic location. Apartment facilities are also very complete. For those who don’t want to hear disturbance by many people, want to have a privacy can also make an apartment as the preferred residence.
The disadvantage of buying an apartment is that you can only own the building, not the land. Apartment buildings also experience significant depreciation of 20% per year. Not to mention the cost of maintaining the apartment which is relatively expensive because it includes public facilities. You as an apartment owner can only renovate an apartment and cannot do major renovations.
Shophouses is also very profitable properties. Due to the high demand for shophouses, the demand for shophouses has increased. Those of you who buy a shop can have a long-term investment. Meanwhile, the disadvantage of buying a shophouse is that when the world economy growth is sluggish, the demand for renting a shophouse decreases or even does not exist at all.
The advantage of renting a shop is that you don’t have to spend too much on the budget to buy the building, considering that shop prices are much most expensive.
The disadvantage of renting a shop is that you also have to pay a high price to rent. That’s because renting a shophouse may not be for only a year, at least more than 3 years of renting periods.
Which one is better?
Renting vs buying analysis, which one is more profitable? After reading the analysis above, you can find out the advantages and disadvantages of buying or renting a property. It’s just that the conditions of one person to another are different, they cannot be generalized. For person A, renting is better than person B. Before deciding to buy or rent, there are several things that must be considered as follows:
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1. Maintenance Costs
You have to calculate the risks and costs that you will have to bear in the future. When buying a house, you have to be responsible for all maintenance costs, from renovations to repairs to parts of the house that might be damaged. On the other hand, by renting a place to live, all damage is borne by the owner.
2. Personal Financial Condition
You must evaluate your financial condition realistically. Want to rent or buy you have to do the right budgeting calculations so that your decision is not wrong. Don’t push yourself or you may fail to prepare yourself for unexpected needs.
Well, we hope that information about Renting vs buying analysis above can inspire you all.