Buying or Renting an Apartment in Panama?

You have decided to move, you are in search of an apartment that meets the comforts you need, that adapts to your tastes and in Panama, that is of your preference. All these points are clear to you, but suddenly the doubt comes: is it better to buy or rent?

The idea always discussed is that buying a property and investing in bricks is a smart decision, while renting is a waste of money, but is it really like that?

It is often said that when renting we are monthly “throwing away” the money because the house will never be our property, but by paying the mortgage payment every month we are also losing money in interest and commissions, beyond the fact that it involves a long-term commitment. If your financial situation allows to pay cash for the property, you could save a lot of money, but not often that capital is available for everyone.

What are the advantages of buying an apartment?

• It is an investment for the future: although it is true that mortgage loans are usually for 20 to 30 years and include interest and expenses, the effort you make year after year and month after month is worth it since you are paying in installments something that will happen to be your asset when you pay off the entire debt. If you rent a property it will never be yours.
• If at some point in your life financial problems arise or your income drastically decreases, by owning a property you do not have to worry about your housing situation.
• You can make reforms freely: if the apartment belongs to you, you can condition it to your liking by carrying out all kinds of reforms and modifications. In the case of being a rented property, the tenants do not always allow such changes.
• You can rent it: in case that you do not need to live in the apartment, you can rent it and generate passive income.
• It allows you to put down roots: if you have found the apartment you dreamed of, also you feel comfortable with the area and the neighbors, owning gives you the peace of mind that you can stay there for as long as you want. If you rent, often when the rental contract ends you will have to leave that place that offers so much comfort if they not allow you to renew your stay.

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What are the advantages of renting?

• It is a quick option: you can get and live in an apartment in a short time, as this does not involve large procedures. Renting is usually an interesting option for young people who decide to leave the family home.
• You do not need a large sum of money: if you want to buy a property you must have savings, since to access a mortgage you need to have a percentage of the property’s value, while the remaining amount is financed by the bank. In the case of rent, you must advance the money of a month’s rent as guarantee, but it is not a considerable amount.
• It gives you more freedom: one of the great advantages of renting is that it gives you the possibility of moving more easily, either because you changed your job and want to live close to it, or because you found an area that you like better, or even because you have problems with neighbors, etc. In the case of owning an apartment, the decision to move is usually more complicated to make and carry out.
• You avoid long-term commitments: when you rent, you do not take on long-term obligations, such as paying a mortgage.
• You do not spend money on maintenance: buildings tend to deteriorate over the years and need improvements and maintenance. When you are a tenant, maintenance and renovation costs are covered by the owners.
• You can use your money for other purposes: if you have savings and you don’t want to buy a property, you can invest that money in something that will generate extra income.

In conclusion, the choice to rent or buy an apartment or a house depends on each person and the moment in life that they are going through.

Perhaps today it will be a better option to rent and tomorrow you will find the apartment you always dreamed of, you will have the financial means to acquire it and the best option will become to buy.

In short, the best option will always depend on each particular case.

And at this moment … what’s the best option for you?