Owning vs. Renting

There are pros and cons of owning vs. renting condos, but many people agree that in the end, owning a condo is more beneficial, mainly because you are building up equity rather than just turning over money to a landlord.

But depending on your circumstances, renting a condo or apartment can be the right way to go too. For instance, people who are new to an area, having just relocated for a job, might favor renting because they are not sure how long they will be there or they haven’t determined which neighborhood they want to settle down in.

Also, you might just happen upon an apartment or condo for rent that has all the space and amenities you are looking for, perhaps a pool, fitness center, and a great location to boot, and decide you would rather rent than buy. Some people who have made comparisons contend that apartments in downtown Chicago and other popular areas are much roomier than the condos available for sale in the same areas. In other cities, such as New York, co-ops, in which people buy shares in a building rather than the individual unit they live in, are another popular option.

The one thing that often holds many people back from owning vs. renting a home of any kind is the need to come up with a substantial down payment. Most people can come up with the monthly rent, or mortgage payment, but even a 10 percent down payment is very difficult for a lot of prospective buyers. The days of buying a home without putting down any down payment may be gone now, following the national financial crisis, and plethora of foreclosures in recent years.

But even if you don’t initially have enough money for a down payment, and still want a there is no need to lose hope that you will never own your own home. There are many rent-to-own condos available, which allow the renter to put some of his or her rent toward a down payment. The rent-to-own agreement usually lasts a year or even two, depending on what the parties decide. They can then revisit the situation at the end of the set time period, and perhaps take out a mortgage agreement. That usually gives the renter enough time to get his or her financial situation enough to qualify for a mortgage.

Because there are so many different situations, there will always be people who prefer owning vs. renting, or visa-versa, and it is good that there are options available to suit every need.