No wonder, the demand for luxury apartments has been on a rise in recent years. Luxury apartments are a delight to live in. Additionally, they come with comforts such as a games court, clubhouse, swimming pools, and so on.
In short, a luxury apartment gives you a safe and peaceful sanctuary free from congested city life. But when it comes to buying or renting a luxury apartment, it is never an easy task. There are certain aspects that you need to consider before making your choice.
However, to make things less complicated for you, check out the pros and cons of buying versus renting a luxury apartment. That way, you can narrow down your choices.
Pros of buying a luxury apartment:
Following are some of the substantial benefits of buying a luxury apartment.
- Luxury apartments allow buyers to put down 20 to 30% of the sale price while financing the rest for over 25 to 30 years.
- As time goes on, an owner will build up equity after buying a luxury apartment. Subsequently, the mortgage will pay off as well. Additionally, equity will increase when the property increases its value.
- In terms of investment, apartments are best suited for groups. If you team up with other investors, you can buy better and larger properties. As a result, it will maximize your profits in no time.
- Lavish interiors and big spaces are some of the reasons to buy luxury apartments. Also, they provide cutting-edge amenities.
- A luxury apartment’s location ensures the security and safety of its owner. The 24-hour monitoring in the gates, corridor, and entrances along with surveillance cameras make luxury apartments secured.
Cons of buying a luxury apartment:
Although buying a luxury apartment has benefits, it comes with potential downsides as well. Some of them are discussed below.
- Choosing, financing, and finally, buying the right luxury apartment can take a significant amount of time. In that case, you need to hire a reputed property management company like Celebrity Prime. They will help you find a great property and make sure that your investment remains profitable.
- Being an apartment owner, you may have a strong insurance policy. Still, you are held liable for crimes and accidents that might occur. This is a kind of risk you have to take.
- From lightbulbs and appliances to railings and windows, luxury apartments need constant maintenance. That way, you are responsible for the repair, maintenance, and even replacement costs.
- Unlike bonds or stocks, luxury apartments come with low liquidity. It means you cannot sell the apartment with simple clicks. Sometimes, luxury apartments for sale take several months to close the deal.
Pros of renting a luxury apartment:
With no investment risk, renting a luxury apartment seems an obvious choice for many people. Let’s find out the other benefits of renting luxury apartments.
- When you rent a luxury apartment, there is a maintenance team to take care of the repair and replacement jobs.
- Luxury apartments come with features that improve your life such as a dog park, fitness center, swimming pool, and many more. It’s good to have these amenities without additional fees.
- Renting a luxury apartment is the best option for you in case if you are not committed to living there for a long time.
- The best part about renting a luxury apartment is that you have the freedom to move.
Cons of renting a luxury apartment:
Renting a luxury apartment is an attractive choice for some people. However, there are certain disadvantages to renting luxury apartments. Take a look at some of them.
- Renting a luxury apartment can be expensive. With a large living area and a well-equipped kitchen, you can expect a high price in terms of monthly rent. Sometimes, you may have to pay for certain amenities.
- It is important to know how long you are planning to live in a luxury apartment. Many apartments offer terms that may last anywhere between six months and one year. If you have long-term financial goals, renting an apartment might not be the best option for you.
Deciding whether to buy or rent a luxury apartment is not easy. And, there is no straight answer to it as well. The choice that you make will depend on several factors other than your existing financial condition.
If you have enough capital to buy a luxury apartment, it may give you a high ROI in both rental income and resale. But if you do not have the necessary cash flow to buy the property and cover other deposits, renting a luxury apartment is your best bet.
Investing in luxury apartments is a great opportunity these days. If you are looking for the best apartments for sale but are unable to decide on your own, connect with our team at Celebrity Prime. Our executives will evaluate your requirement and help you choose the best apartment tailored to your needs.