Renting vs. Buying a home: Which is right for you?
Buying an apartment is one of the major investment targets of majority of Lebanese families; but in the wake of no “housing loans”, this target is proving to be unreachable for many. The remaining option is mainly to rent an apartment. While this is a situation not favorable to many, one can reflect on the many positive advantages of “renting an apartment”:
Rent is a more “flexible” option
When you rent an apartment, it is easier to move to another apartment if you need to vs. when you buy. Your work address may change or your kid’s school may change or simply you may find out after living for period of time in a certain apartment that it is not suitable for you for many reasons (commuting time or neighborhood specifics etc…); you have the flexibility of moving into a different place when you rent. Whereas when you buy, especially via the previously known “isken loans”, you are stuck into the apartment for a period of minimum 7 years before being able to sell it – or else penalties will be imposed. Selling your apartment to move somewhere else in itself can prove to be a slow process in a slow-economy market as well, regardless of whether you have benefited from “isken loans” or not!
Responsible for Repairs/Maintenance
When are an owner, you are responsible for maintaining your property! Obviously when you rent, generally speaking the main repairs are done by the owner and not by the tenant. This can prove to be a big saving yearly depending on the nature and age of the property. And beyond the cost of repairs, you do not have to be bothered about the maintenance and repairs of your property. The worry of following up with the workers needed to repair and maintain the property is a worry you do not have to handle.
Your financials may be unstable for the short period
Generally speaking, when you buy you take a long-term loan! This means that you are committing over a long period of time to installments. Your line of business may be with unpredictable income or you may be in an investment phase in your business at the moment and you are not sure about the potential of your income. If your finances are variable or likely to change soon, potentially making it difficult to keep up with mortgage payments, then your better option is to rent.
Rent may give you the luxury of a better location
Location, Location, Location: this is the # one rule in Real Estate. Given your finances, you may be able to afford to buy an apartment in a location outside of Beirut whereas you can find an apartment to rent in Beirut within your budget. However, Beirut may be your desired area to live in given your work and many other variables. Some people would sacrifice the commuting time daily for the sake of owning an apartment outside Beirut whereas others prefer to live closer even if it means they will spend their money on renting in Beirut vs. owning
We are not trying to convince you to Rent vs. Buying an apartment or the other way round. We are simply exploring the different reasons why Rent may be favorable for some.
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