4 Reasons Why You Should Consider Leasing An Apartment Over Buying It
If you are considering either leasing an apartment or buying it through a loan, then this post is definitely for you. While buying an apartment offers benefits like lifelong ownership and such, leasing also gives you some incredible advantages. And four such benefits of leasing are discussed below.
1. Less Initial Investment
The initial investment while leasing an apartment is far less than that of buying it. While buying it would have required you to arrange for the down payment of a loan, leasing only requires you to pay a small security deposit, and maybe two month’s rent. As such, if you don’t want to spend too much of your wealth, tying it up on a property, then leasing is the best option you have. Plus, since you don’t have any loan, you are free from the mental stress of having to pay off a large amount of money over the coming many years.
2. No Repairs or Maintenance
In a lease agreement, you are not responsible for the repairs and regular maintenance of the apartment. Instead, all such things are taken care of by the landlord. The only time you will be required to pay for repairs is when you damage anything in the apartment. In contrast, if you had bought the new apartment, and you had a leaking faucet, then you will have had to spend money on its repairs. So, be sure to ask the landlord to correctly detail all the maintenance work to be done by him in the lease agreement.
3. Less Credit Requirements
A lease has fewer credit requirements than a loan. For a lease, the landowner will check your credit score, and as long as it is within acceptable levels, you will be given a lease. However, if the report shows instances of bankruptcies and such, there might be a slight issue. When it comes to a loan, it is completely different. The banks will have strict credit requirements, expecting you to meet their minimum credit scores. So, if your credit situation is not good, then it will obviously be better for you to go with leasing an apartment rather than consider buying it with a loan.
4. Protection From Real Estate Fluctuations
If you had bought the apartment with a loan, then you will be exposed to the fluctuations of the real estate market. And in a falling real estate market, you would still be liable to pay the fixed monthly installment for a property that has been priced lower. This can be very stressful for you since your money is tied to the property. But in a lease, you don’t have to worry about the market fluctuations since you don’t own the property. And this can give you peace of mind.