Leasing or Buying; which is the Best?

Posted on Leave a comment

When it comes to make decisions regarding to Real Estate, we face a long and exhausting period of research, analysis and reflection.

We all may have in mind Paul Getty’s famous quote: “If it appreciates, buy it. If it depreciates, lease it”. Real Estate properties are among the goods that trend to increase their value with time. But is that fact a sufficient reason to buy and maybe invest the savings of a lifetime in a property?

getty

Here are some well-known advantages of each trading figure:

Buying

  • You are investing in something that will become your property and later on it can be your source of capital for further acquisitions.
  • You can make the changes and adaptations you need, in order to satisfy your home or business requirements.
  • If after some years you want to move, change your business or buy more Real Estate, your current property can serve as a guarantee.

Leasing

  • Nowadays, leasing contracts give you plenty of choices to change or adapt the place, in order to fulfil your needs.
  • You have also the opportunity to buy, when the leasing term finishes.
  • If your life or business goals completely change, the property won’t become a burden.

As you can see, appreciation and depreciation are not determinant facts. The most important is to define what you want, what you need and how much flexibility you want to have.