Why Buy a Luxury Home When You Can Rent it?

Apartment for rent

Conventional understanding assumes that when it comes to a residential property, you’re better off buying it than renting it, as renting will cost you more, and, at the end of it all, the property won’t even be yours. However, the equation changes considerably when we throw in luxury; luxury apartments, luxury properties, and luxury homes change the equation completely. Today, we’ll be answering the question that might have been asked too many times: are there any benefits in renting instead of buying luxury homes? Let’s get right into it and understand the pros of renting rather than buying. 

rent home

Renting homes instead of buying: how much does luxury affect the equation?

Renting conventional or just your average homes will always be a bad option, especially in the long run. For normal homes, try to pay the price upfront since the associated costs of maintenance and other requirements are relatively low, and these can make for a great long-term investment. On the other hand, if you rent an average home or apartment and live in it for a considerable period (more than five years), then you would be better off taking out a mortgage and purchasing it. This allows you to live in it when required, and when moving out, you can always either sell it or rent it out.

However, with luxury properties, the situation has changed. This is mostly because luxury properties command more in terms of maintenance costs, insurance, and mortgage premiums and overall have a much more pronounced risk factor when it comes to mortgaging, which is why renting luxury properties makes more sense than just buying them. 

Now, let’s look at some advantages of renting a luxury home rather than buying one, which will drive home the point. 

Renting instead of buying luxury homes: the many advantages

Here are all the reasons why renting a luxury home will make you fare much better than buying one. 

Maintenance won’t be your headache

The first and biggest factor that will immediately help you understand why renting a luxury property is fiscally better than purchasing it. You see, like every other residential property, maintenance is something of a necessary evil. It eats into your budget, but you need it to keep up the property. The more expensive the property gets, the more expensive the maintenance will be. That’s the rule, and that is something you don’t want to get stuck with; exorbitant maintenance costs can seriously affect the feasibility of owning a luxury house. Plus, throw in the costs of renewing fixtures, furniture, pool equipment, and other associated costs, and suddenly, you might have too many costs on your hand that make it seem like the prospect of owning a luxury house is simply too wasteful. 

Retain access to all features, amenities

In renting a luxury house, it is not like you won’t be able to access the amenities that the house has to provide, or since you don’t own the house, you might not have the chance to explore the entirety of it. The main charm or reason why one would go for a luxury house is to enjoy the many things that come with it: for instance, many luxury houses come with personal gyms, theatres, saunas, private garages, wine cellars, and many other amenities that seem excessive. Now, you can enjoy all that without having to spend exorbitant amounts of money on first purchasing the house and then paying an equally ridiculous amount in maintenance constantly. All of these amenities and features will be yours even if you are renting it, and that is part of the reason why you might be better off renting a luxury house rather than buying it. 

No immediate financial requisites like down payments

Purchasing a regular home is expensive enough, especially how the real estate market is right now in Canada. A luxury home is something that only the uber-rich can afford at this point; however, when it comes to renting, even the uber-rich sometimes rent luxury homes. That is because a down payment or purchasing the home in one go is simply too big of a financial transaction that it could affect your finances for the foreseeable future. In this case, renting a luxury house seems like the better option: you don’t part ways with an extremely big chunk of your money, yet you still get to live in and enjoy the luxury house that caters to all you might need. 

No need to pay hefty taxes

Property tax is bad, as bad as it gets. Just ask any property owner. It might be better in Canada than in the US, especially in California, but Canada still has a very hefty property tax percentage. Buying a luxury house means paying hefty amounts in property tax every year, which takes the shine off of owning such a luxurious house. Factor in property taxes with maintenance costs and other associated costs, and suddenly, the prospect of owning one gets too out of hand. In that case, if you have a good amount coming in every month, it is perfect to rent a luxury house and not buy it outright and be stuck with all these outrageous sums of money. 

rent a home

Fixed rent per month

For an added semblance of stability in your payment cycle and to ensure that you can budget and accurately forecast your budget for the next month, you need to have regular payments that you know won’t fluctuate and put a dent in your plans for the subsequent months. By buying a luxury house, again, you will be bogged down with inflated payments in terms of maintenance, taxes, and mortgage repayments (if any are applicable) that, in some cases, might not be fixed and could cause trouble for you in budgeting for the subsequent months. However, with a fixed rent each month and with the added advantage of not having to pay for all those other utilities, you get peace of mind of just dealing with a fixed amount each month and not getting bothered with anything else. 

Easier relocation

Buying a house is a long-term commitment. Many people who buy houses on mortgages or outright purchase them intend to live in them for the foreseeable future. While nobody knows what life has in store for us, we can still plan ahead of time. For some people, their career or family situation requires them to move around constantly, and in this situation, buying a luxury house might bog you down with unnecessary financial requisites. However, by renting on short-term leases, you can always free up the financial capital and free yourself of any long-term, high-expense commitments that might otherwise bog you down unnecessarily. Simply rent a luxury home on a short-term lease, and when it’s time to leave and move on, all you have to do is call the movers and write a letter to your landlord. 

Pay less for a good lifestyle

Obviously, by living in a luxury home, you will be maintaining a good and privileged lifestyle that grants you access to luxury, in simple words. This lifestyle needs to be paid for, but how much you will be paying for luxury depends a lot on whether you rent or buy a luxury house. If you rent a luxury house, you will enjoy the high lifestyle and impressive residence without becoming too much of a burden on your finances. In short, you will pay less for a good lifestyle, which is a sign of financial prudence if you pay less for the same experience as an expensive one. 

buy a luxury home

Toronto Boutique Apartments (TBA): luxury apartment rentals done right!

Luxury apartments: everybody thinks they might be better off buying them, but renting them with Toronto Boutique Apartments (TBA) will always be better. Our beautifully appointed premium apartments boast the luxury and upscale feel of designer apartments without burning a hole in your wallet. Short stay? TBA has you covered. Discover a range of beautiful locations and even prettier apartments for your next stay to feel special: TBA delivers on all fronts, whether the prices or the décor. Expect nothing short of the best. 

Share this post:

Facebook
Twitter
LinkedIn

Inquire About Unit