Ownership of Property - Choice of Purchase or Rent
Having a house or an apartment with a shelter for the family is an aspiration for many young working adults. A posh residential address preferably in the prestigious city centre is a status symbol to many people in today's urbanised concrete jungle. The property of choice may be a house with a garden or an apartment with panoramic view in a highrise condominium. Ownership of the property is either through purchase often with bank mortgage loan through banks such as Citibank, HSBC or Standard Chartered Bank or by renting.
Buying a property is a major financial decision for many working adults. Some landed house may easily cost most than a few million dollar and some apartments hundreds of thousands of dollars. There is usually a requirement for some upfront payment (such as 10% of the purchase price) and the rest of the payment is usually through bank mortgage loan with the property mortgage as security. Buying a property with bank mortgage loan requires the owner to make monthly instalment payment to the banks. There are cases such as the recent sub-prime mortgage crisis where some borrowers lose their high-paying job and subsequently struggle with the monthly instalment payments.
Renting a property is a popular choice as it does not require a big outlay of cash and taking-up of bank mortgage loan. The tenant would just have to select the property usually base on location, budget and convenience and make monthly rental payment to the landlord. However, renting a property may subject the tenant to risk of paying a higher rental upon renewal of rent in a bullish property market. Most tenancy are subected to renewal on a periodic basic and has a fixed lease period (such as yearly).
Having a home is an immediate priority for many young working adults. At home, they are able to relax after work and look after their family. Ownership of the choice property is a major decision to be made whether through purchase or rental. Whichever decision one makes, having a shelter for the family should be the main consideration.