In today's economy, many people are choosing to buy a condo rather than lease. After doing the calculations, it may be more affordable for you to purchase a suite than to lease an apartment.
When determining your ability to lease or buy, you will need to compare your monthly expenses in terms of lease vs. maintenance fees, taxes and mortgage payments.
In buying a condominium, you would benefit from a full recreational facility (would you still need to pay for a health club?), full security, parking and storage locker may be included, in-suite washer/dryer, and a sound investment (instead of paying off the landlord’s mortgage when leasing). Owning a condominium allows you to enjoy all the benefits of a fine condo, with the added benefits of amenities, enhanced security, increased affordability and ease of maintenance. Some of the amenities include 24-hour concierge, high-tech security surveillance, recreation and fitness facilities plus the convenience of not having to shovel snow or cut grass.
When you really look at it, the two don't compare at all. The one advantage of leasing is being generally free of most maintenance responsibilities. But by leasing, you lose the chance to build equity and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.
Owning a condo has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. You get freedom, stability and security of owning your own home.
Leasing can be good if you intend to move every year, but who wants to do that. Moving is one of the most stressful experiences one has to endure in one’s lifetime, so why would you want to go through that each year?
Buying can help you build wealth, and provide you with the opportunity to move onward and upward to larger and more expensive real estate over time.
Leasing provides more flexibility, but at what cost? When it’s time to move, buyers cash in and leasers walk away with nothing.
What About Lease Agreements?
When leasing a condo, it’s best to get an Agreement to Lease contract written up by a real estate agent. This is because the landlord can sell the unit, and the next landlord (whoever bought the unit) only has to give 60 days notice to the tenant on a month-to-month lease, if the landlord wants the tenant to leave and the buyer to take vacant possession. Where as an Agreement to Lease protects that tenant’s stay until the end of the lease. Lease Agreements are usually one or two years in length.
For the investor, having an Agreement to Lease can be used as leverage for other real estate investments. Without a lease, lenders have no proof of that extra income.
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