Renting vs Buying
Any potential real estate investor has to weigh out all options when it comes to buying or renting.
Bret Sanya
Is it better to rent commercial property or to buy commercial property? This has been a debate that has taken center stage in the real estate sector for quite a long time. There are those who may say that buying is better than renting and of course they will have their reasons but renting also has its benefits over buying.
First, renting offers a better lifestyle at a cheaper price. Take for instance renting an apartment in Runda that goes for Kshs. 150,000 where you have access to a swimming pool, garage, social amenities like gyms, libraries, hospitals, etc. It would be way cheaper than actually buying a property in the same area that would go for almost 20-25 million shillings.
When renting real estate property one has less responsibility compared to when you buy property. An example is, if you buy a property that essentially has a cracked wall then it would be up to you to repair it. On the other hand, if you rent a property and there are repairs to be made then the landlord would be the one to pay for them.
Renting properties offers a lower upfront cost. When renting a property all one has to come up with is the security deposit and probably one month rent in advance compared to buying a house where you have to factor in the down payment, due diligence, and also the closing payments.
Lastly, renting a house offers flexibility. When you decide to buy a property your money is essentially tied, it becomes less liquid than having other investments. Renting allows a person to be able to use their capital in other investments. It keeps your capital liquid, this is because when paying rent or leasing happens once a month or yearly depending on the agreement as such not all your capital is tied up in that particular investment.
These are some of the facts at hand for a potential real estate investor. You may have to weigh out all your options and see what works best for you be it buying or renting.
