What is more financially sensible in the long run: buying a condo or renting an apartment?
I know that it varies depending on the specific place, but just assuming the condo and the apartment are the same in all ways except that one is for sale and one is not.
It really depends on how long you’re going to be owning it for (assuming everything’s identical like you said). For example if you’re only living somewhere for a year, then obviously buying a place isn’t the sensible thing to do since selling things in certain markets of the world right now aren’t very easy nor will you necessarily earn back what you put in.
But if you’re going to live there for 5 or more years, then obviously buying a condo would be more sensible because you’re not literally throwing money at someone else’s mortgage or into their pockets. You are paying your own mortgage and you own it without having to tiptoe around a landlord or have any rules like no pets etc (unless the building has bylaws such as these) and you’re free to do whatever since you own it!
So it depends on circumstance.
The condo. If you buy a condo then you don’t have to pay rent for it every month unlike if you rent an apartment. So if you buy a condo now then you don’t have to pay a fixed rental every month!
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buying a condo means you own property. in the long run, you should expect to have payed off that condo, at which point, you no longer pay to live there. because it’s yours. and then own something worth a bunch of money.
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Generally, the condo, because instead of spending money on rent, you’re investing money in a property. But it depends on how much you have to spend on maintenance, etc.
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It really depends on how long you’re going to be owning it for (assuming everything’s identical like you said). For example if you’re only living somewhere for a year, then obviously buying a place isn’t the sensible thing to do since selling things in certain markets of the world right now aren’t very easy nor will you necessarily earn back what you put in.
But if you’re going to live there for 5 or more years, then obviously buying a condo would be more sensible because you’re not literally throwing money at someone else’s mortgage or into their pockets. You are paying your own mortgage and you own it without having to tiptoe around a landlord or have any rules like no pets etc (unless the building has bylaws such as these) and you’re free to do whatever since you own it!
So it depends on circumstance.
References :
realtor