The long debate over whether you should rent or buy a property continues, as each opinion has its own supporters. In a time when it’s too expensive to buy a house, renting becomes a better option. However, there are people who still prefer to buy their own home, regardless of high expenses.
With the development of properties in a city like Amman, the options are endless, with people preferring the stability, and others worried about the high prices. Anyhow, if you can’t decide which to do, this guide will help you make your decision.
Pros of Renting Property in Amman
There are several advantages to renting a property, which make it a better choice for some people.
1. No Maintenance Costs
One of the advantages is that there are no costs for maintenance, meaning that all repairs are the landlord’s responsibility. That includes the small details, like fixing water faucets, and major issues like renovations. This reliefs the tenant because they pay a fixed monthly rent without having to allocate additional funds for any unexpected breakdowns.
2. No Property Taxes
One of the biggest benefits of renting is eliminating property taxes, which can sometimes amount to substantial sums. However, as a tenant, you are not legally obligated to pay any of these taxes; they remain the sole responsibility of the landlord. This means the rent you pay each month is simpler and more transparent.
3. More Flexibility
Renting guarantees more flexibility, especially if you are considering moving to another city, or changing your house cause you simply don’t like it. Therefore, the lease contract can be less than a year, may be up to six months, or may be for one month and renewed as needed.
4. Forget the Down Payment
Another renting advantage! Usually, when purchasing a property, you are expected to pay a down payment, which can be a significant amount of money. As in the case of renting, you are only obligated to pay the monthly rent, saving you a lot of money.
Cons of Renting: What You Should Consider
Even though renting a house has many advantages, it has some disadvantages that to some people really matter.
1. Less Stability
The lack of stability in the long run can be the biggest red flag for some. Usually, rental leases are limited to a year or less, leaving the tenant in uncertainty. Adding to that, the possibility of raising the rent, or even having the landlord demand that you vacate the property for any reason. You will spend a lot of money on a place that is not even your home.
2. No Control
You have no control over anything in your house, starting from the little details to the big ones, like painting or expanding the rooms, which will make you feel like you’re not actually at home, or even limit the use of spaces to suit your specific needs.
3. No Investment Potential
Property owners can invest in their houses if they decide not to live in them anymore, or even leave the country, which can be a passive income; but in the case of renting, that’s not an option.
Why Buy a Property?
On the other hand, buying a property is beneficial, despite the financial burdens.
1. Stability
When it’s your own home, you can leave the worry of ending a rental lease behind, giving you a sense of belonging and security.
2. Long-term Investments
Real estate appreciates in value over time, making it a relatively safe and profitable investment. You can invest in your home even if you decide not to live there or travel abroad, which is a financial return.
3. Control
If you are tired of landlord policies and regulations, having your own home gives you full control, allowing yoy to make the adjustments you want.
4. Less expensive than renting in the long term
Although purchasing real estate is initially expensive, especially since it often requires a down payment, in the long run, it is less expensive than renting, as you don't have to pay rent every month for your entire life.
Rent vs Buy: Which One?
Eventually, there is no one right choice, as for some, renting is the safe option, but not necessarily to fit everyone. That depends on several factors, among which are:
- Stability
- Budget
- Constant moving
FAQs
1. Is buying property in Amman a safe investment?
Yes, buying property in Amman is often a safe investment due to the appreciation of property values over time. The city is experiencing urban expansion and increasing demand, making property a viable asset for growth, in addition to the potential for additional income through future rental income.
2. How much money is typically required to buy property in Amman compared to renting?
Buying typically requires a down payment of 20% or more of the property value, plus associated taxes and maintenance costs. Renting, on the other hand, only requires monthly rent payments and is less taxing on short-term budgets.
3. Is renting a better option than buying in the long term?
Renting may be a better option if you travel frequently or are unsure of the length of your stay in Amman. In the long term, buying is typically more financially viable because it eliminates the obligation of ongoing rent payments and provides a tangible, investable asset.
4. What factors should help me decide between renting and buying?
The decision depends on several factors, most importantly: your desire for stability, your current budget, the nature of your work (does it require constant commuting?), and your future investment outlook. If you're looking for greater flexibility, renting may be more appropriate. However, if you prefer stability and building a long-term financial asset, buying is the better option.