Our clients interesting in Phuket property market often ask what is better – buying or renting. Particularly such a choice is relevant for those who come to the favorite place on holiday or on business affairs several times a year.
Purchase costs and requires spending more efforts, but only once, after all housing becomes your own property. Tenants also regularly pay fees and at the end of the lease term have nothing. What is preferable?
The answer is evident: if you are going to reside here, you’d better buy any assets; as for holidays, it is frequently more reasonable to rent. Having a rest at the same resort is more typical for families with children. It is extremely important for parents to find use-proven place where they can take their kids for holidays. Also it works with older people preferred resting in well-proven and quiet spots. The same situation is with traveller’s who have health problems, and that is why they choose this climate allowed them to feel good. However, if your trip is not long, it is more sensitive to rent accommodation. The mass of young people or others tended to seek variety and new experiences, as a rule, rarely go for vacations in the similar area, so the most suitable option for them is to leasing a house or apartment.
Phuket property market experts say that If the use of real estate is equal to one month a year, the cost of its annual maintenance will be approximately comparable with the monthly rental cost. According to the facts, buying a unit is more profitable, if you plan to use the property for more than two months of a year; otherwise it is more rational to lease.
If it is not a holiday accommodation and your property is aimed at permanent residence, the choice is often made in favor of own villas or condos. Nevertheless, problems can arise if a few years later you are going to move again.
On the other hand, renting accommodation does not provide any guarantees for the future. This is just a temporary option for a holiday or business trip. If there is a desire to save money in a long perspective, and at the same time you have the opportunity to purchase dwelling in Phuket – just do it. Because no one knows if such a possibility will be represented further. In addition, if it is necessary, you can rent purchased housing out or sell it and live spending this money. Purchasing a home will ease your life after retirement. Since this period, income may be reduced, but you will not need to pay for hiring.
Having bought overseas dwelling, it is feasible not only to cater for old age, but furthermore to generate income right now renting accommodation out. Additionally, property values often increase with time, and it can be profitable to sell, offsetting some costs.
From the point of receiving income from the investment, it makes sense to acquire home in Phuket, besides this idea is popular not only among locals but also among international buyers. In this case, buyers can expect not only potential profit if they decide to use their house or flat in a commercial goal, but also on the increase in value in the future. What is more, due to high liquidity of estate it is always possible to sell them, if necessary.
Although, at first glance, it may seem that own homes require much more expenses than rental ones. In fact purchasing can be cheaper than renting. The landlord, who pays the loan, will have the typical sorts of costs: down payment, the actual monthly mortgage payments, utilities, repair, maintenance and insurance fees. Tenants also make an advance payment and then a monthly fee for the lease and utilities. And frequently rental rates exceed the content of the apartment (including mortgage payments). That means those who have bought estates save and earn money.
The bottom line is leasing is preferable if you:
- spend vacations in different places;
- plan to live abroad no more than a few weeks a year;
- are not going to invest money;
- see the property is not in a popular location and has a low liquidity.
Choose buying if:
- you outline to use the property as a primary residence or spend most of time there;
- calculations show that acquiring a house is cheaper than renting;
- property is located in a great place where there are no problems with the sale, lease or resale.