Although being a homeowner gets you in power, renting out an apartment in Deira, Dubai also has some benefits that you can’t overlook.
People might try to convince you with strong reasons for why you shouldn’t rent but buy your own apartment, renting isn’t as bad as it’s perceived. Even though owning a house is also a great idea, but there’re still some persuasive reasons to rent out an apartment. Renting out an apartment is a great way to save money. While buying and renting have their own financial benefits, renting out actually has an edge when the economy is poor. Here’re a few reasons why renting has more financial benefits than buying. So let’s dive in;
No Bills and Maintenance
This is perhaps one of the most persuasive reasons why many people head to renting than being homeowners. It’s an inevitable advantage renters have over homeowners as they don’t have to look after repair costs and maintenances. In case the roof starts leaking, or some appliance stops working, it’s not you but the homeowner who is responsible for bearing that expense. So whether it’s repair, maintenance or maybe renovation, the homeowner will be responsible for that – not the renter.
Access to Amenities
This is mainly true for the midscale to upscale apartments. It’s an excellent benefit that you get when renting out an apartment. You’re able to access all the amenities like gym and in-ground pool etc. Otherwise, you would have had to bear huge expenses to have these luxuries. But when you rent out, these luxuries come to you as additional perks without having you pay an extra charge for that. So the homeowner has already paid thousands of dollars for the amenities you’re getting for free as a renter.
Down Payment Waived
When it comes to affordable apartments in Dubai, here’s another tremendous financial benefit you get upon signing the deal. Normally when people buy a house with a mortgage, they’re supposed to pay a substantial amount as a down payment – which is ideally 10%. But when you move to a rental property, you don’t have to pay too much of the down payment. The exact amount you need to move in would vary from case to case, but it would surely be way less than what you have paid as the down payment when buying a house.
Lower Insurance Costs
With all the other benefits, you also get huge benefits on the insurance as a renter. While the homeowners have to buy the homeowners’ insurance policy, the renters also need to buy the renters’ insurance policy. But the best part here is that you don’t have to pay too much when buying the renters’ insurance, unlike homeowners. If you buy the renters’ insurance, you’ll pay no more than $12 per month. On the flip side, the amount per month would up to $80 if you’re buying the homeowners’ insurance. So this is another great advantage you get as a renter.
Until the lease agreement ends, the rent is fixed. Legally, the landlord can’t ask you to pay more rents. Perhaps that’s the reason why it’ll be easier for you to do good budgeting for the whole month. Keeping in mind all your expenses, things won’t turn up terrible as you already know what you’re supposed to pay as rent. While the rent is fixed, the property tax might fluctuate that’s not at all your headache. In fact, the homeowner will be supposed to look after the property tax. So you don’t need to worry about it.
If you’re a renter, it doesn’t affect you if the property value goes up or down. Even if the property value drops dramatically, you don’t have to worry about it as you’re just paying for the utilization of property for the limited time. Since you’re not the owner but renter, the property value fluctuation isn’t going to affect you in any way.