Should you invest in apartments? | Apartment investing vs renting

The expenses on accommodation are increasing day by day in this overpopulated world. House rent is increasing day by day, which makes it very difficult for middlemen to survive. That is why some people think of investing their money in an apartment to save rent. But we all know that everything has its own pros and cons. 


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This article will discuss some pros and cons of apartments over renting, which everything should consider before investing in an apartment. This comparison will also help you to decide whether the apartment investment is good for you or not?

So a lot to know, a lot to discuss and without wasting any time, let us begin.\

Pros of buying an apartment over renting

#1 Freedom of customization

You can customize your house on your wish. No one will interrupt you in customizing your apartment. On the other hand, if you rent a home, then there is a high possibility that your landlord will not allow you to customize it, and you will also feel hesitant while spending your money on another person’s apartment.

This point is significant for creative people who cannot live without customization for a more extended period.

#2 Rent saving

You need not pay any rent to anyone when you live in your own apartment. It helps you to save a lot of rent and in the long term. Also, on average, rent increases by 10% every year, so if we estimate in the long term, you can save a lot of money by buying your own apartment.

Also, saving rent is the primary factor of buying an apartment for a lot of people.

#3 Security of living

Your own house ensures the security of living. You can go and live in your house anytime you want, you do not need to take anyone’s permission, you do not need to pay money to anyone for living at your house. In the worst financial situation, you can rent a room in your apartment to generate passive income.

So, at last, we can say that your apartment can give you the security of living.

#4 Appreciation of value

We all know that the value of apartments increases over time. There is a lot of chance that the price of an apartment you buy today will double after 10-12 years. But remember that location plays a vital role in the real estate sector. So be sure to select a perfect location if you plan to invest in an apartment for resale.

#5 Personal satisfaction and social status

We feel different personal satisfaction when we buy an expensive thing with our own money, and we know that an apartment is costly. Some apartments even cost millions of dollars. The personal satisfaction of having your own apartment will give you a special satisfaction when you go to sleep.

People will also give you a special social status when you have your own apartment building.

These all are the major pros of apartment investing. So now let us now discuss some cons of investing in an apartment building.

Cons of Investing in apartment

#1 Huge funds requirement

Everyone can’t buy an apartment because buying your own apartment needs a lot of money. A medium-sized flat costs about 8 years of salary for an average person. In simple words, you need to work 8 years under an employer if you want to own your own apartment.

It is challenging for an average person to arrange money for buying an flat , due to which a lot of people take out a bank loan for buying it. Generally, people pay home loan instalments for 20-30 years with interest. So we can say a person needs to work for about 25 years if they want to purchase an apartment.

#2 Time-consuming process

As I have already discussed, location plays a vital role in evaluating real estate items and finding a good location is a very time-consuming process.

Before investing in an apartment, a person needs to consider many factors like upcoming government and private projects, distance from the market, and crowder placest. So generally some people take about 6 months to 1 year to find a suitable apartment.

You need to fulfil a lot of legal formalities for registering an apartment. Some countries charge many taxes like stamp duty, property tax, inheritance tax etc., while purchasing, holding, transferring or selling any real estate items.

Also, if your apartment size is more than a specified limit in some countries, you have to pay the extra luxury tax. So consider these taxes and expenses before investing in an apartment building.

#4 Risks from disasters

If you are an owner of the apartment, you have to face all the risks of natural disasters like earthquakes, tornados, etc. I know that it is scarce, but an earthquake or a tornado can destroy your apartment in some seconds, and all your money will be lost.

So it is better to buy property insurance to reduce the risk of property damage from natural disasters.

#5 Fixed place of living

Buying an apartment involves a lot of funds which simply means a fixed place of living for an extended period. So if you do not like to live in a particular place for a longer duration, you should never buy your own apartments and preferably go for renting.

These were the main disadvantages of buying a flat.

Is an apartment a good investment?

If you are an old-aged person, have a lot of funds, or have proper knowledge about apartments, then yes, an apartment is a good investment.

On the other hand, if you are a young person or do not have funds, I will not recommend you invest all your hard-earned money in an flat. On the other hand, you should support it in gaining experience.


Now let us just summarize the article in brief. There are a lot of pros and cons of apartment investing like freedom of customization, appreciation of value, rent saving, security of living, personal satisfaction, risk of disaster, fixed place of residence, time-consuming process and huge funds requirement.


We can conclude that if you are young, then I recommend you to go for experience in place of security because, in your old age, you will only remember all the experiences which make your life adventurous and successful. You may want to save the rent, but for your information, you can pay rent.

On the other hand, if you are old or have a good knowledge of apartments, you can definitely go for investing in an apartment.

With this note, let us now end this article, and as always, God Bless You All.

Frequently Asked Questions

What is the major reason for investing in an apartment?

Saving rent is the major reason for investing in an apartment.

What is the major disadvantage of investing in apartments?

Investing in real estate requires a lot of money, which is also its major disadvantage.

Should young people invest in real estate?

If you are young, then you should focus on experiences instead of physical property because at the end of life you will only remember your experiences.

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