Reasons Why Renting Is Better Than Owning Your Own Home
The goal for many people is to own their own home. Of course, being a homeowner comes with many positives. For one, monthly mortgage payments are usually less than rental payments. Why would you want to be paying off someone else’s mortgage when you could be paying off your own for less? You have no landlord to deal with and, at the end of the day, your property is an asset and likely a decent investment. In fact, property prices in Malta are recently said to have seen the second highest percentage increase in the EU!
However, becoming a property owner is no easy feat. Deposits can be difficult to save for, especially if you are renting at the same time, and mortgages can be hard to obtain. The average asking price for 1-2 bedroom apartments (at time of writing) is between €250,000 and €300,000. So, if you’re looking to buy, you’ll need to come up with a deposit of €25-30k. Plus, you’d need to be on a salary of about €60k to be given the mortgage! That’s not even taking into consideration any other fees involved. Perhaps, as a couple, it might be affordable if you’re both on a decent wage. But, with the average salary in Malta standing at roughly €18k, the average single has been priced out of the market.
This isn’t just the case in Malta, either. Owning a home is quickly becoming a pipe dream for many young people in the EU and all over the world. Renting is becoming the norm for most millennials and it’s looking to stay that way! If you’re someone who’s renting at the moment and your dream of owning your own home feels too far out of reach, please carry on reading! Paying the rent might feel like you’re throwing money down the drain but it’s not all doom and gloom. There are so many positive aspects to renting! Read on to find out the reasons why it’s better to rent than it is to own your own property.
You don’t have to pay to finish or refurbish the property.
When you rent a property, you don’t have the expense of finishing or refurbishing it. Think about it, if you buy a brand-new place or you buy a property but don’t like the interior design (or it’s in disrepair), you’ll have to fork out thousands to finish or refurbish it! Plastering, painting, tiling, installing bathrooms and the kitchen… it all costs money! However, if you rent, you can pretty much just move in. Yeah, it might not be finished to your taste but when it doesn’t cost you thousands of euros, so what?
You don’t have to furnish the property.
Again, this is another expense you don’t have to deal with when renting a property in Malta. The majority of rental apartments and flats come fully furnished these days. Not only is this great financially, seeing as you don’t have to fork out for TVs, sofas, beds, wardrobes, washing machines, ovens, tables or chairs, you also don’t have to carry it all up the stairs! I sure wouldn’t mind sitting on a sofa I didn’t like the look of if I didn’t have to pay for it or move it into the apartment!
You aren’t responsible for maintenance!
Another great thing about renting vs owning is that, as a tenant, you aren’t responsible for the maintenance of the property. Well, you are required to keep it clean and not cause damages, but if something breaks or if there’s a leak, for example, your landlord will need to deal with this issue, not you. What’s more, in a block of apartments there’s normally a condominium. So, if you own a flat or an apartment in a block, not only will you need to pay to maintain your own property but you’ll also need to pitch in for the maintenance of the building and the common areas. Renting is much less of a headache in this scenario!
You can move whenever you want!
Don’t like your neighbours? Bored of the apartment? Got a new job in a new area? Or perhaps you’re extending your family? The answer is simple… just move! Well, it’s simple if you’re renting. Most rental contracts only last 6 months or a year so, if something like this happens, you can simply move at the end of your contract. On the other hand, if you own your property, it’s much more of a mission to sell and buy somewhere else. There are so many extra expenses involved in buying/selling as well (notary, agency fee, stamp duty, capital gains tax, etc.) that every time you make a move, you lose money. The only thing you have to pay when you rent a new place is the agency fee (to pay for the agent’s services who helped you find your new place) and the deposit (which you should get back at the end of your lease anyway if you look after the property).
You always have less stuff to move.
Finally, when you are renting a place, you are far less likely to buy things for the house or invest in furniture or art, for example. This makes moving so much easier! You’ll probably only have a couple of suitcases filled with clothes to lug from one place to another. Imagine having to pay for moving trucks to cart all of your furniture and things from one house to another! Not to mention all the plates, glasses, mugs and vases you’d have to wrap and box up. What an expensive and time consuming mission that would be!
All in all, renting sounds like it’s much easier and much less expensive than buying and owning a home. When you rent, you don’t have to incur any of the decorating, furnishing or maintenance costs. It might be frustrating to pay so much money in rent instead of paying off your own mortgage but if you’re not ready to settle down just yet, it might be the more sensible option. Renting is far more flexible and far less risky! Until you have saved up enough money and you’re ready to make a huge commitment and investment in a property, then enjoy the freedom and flexibility of renting while you still can!
At QuickLets, we have a team of dedicated agents who can help you find the right place to rent. Whatever your requirements, in terms of size, location and anything else, we’ll get you what you’re looking for! We have the largest database of property in Malta and Gozo so there’s no one more equipped for the job! Whether you’re looking for your first place to rent in Malta or you’re moving (with only a couple of suitcases, remember), you can pop into any one of our branches or contact one of our agents over the phone, e-mail or Facebook.