Owning and renting a property each have their own advantages; however, what’s best for you and your family depends on your financial and social circumstances.
To buy house in Qatar, and lease to own a home in Qatar, or anywhere else is a serious financial commitment; whether it’s to buy studio apartments, buy villa houses, buy a Townhouse, and etc. which requires anybody to plan ahead and reflect on their life. Before you decide whether to buy or rent a property, you should know your budget and ask yourself if you are financially capable enough to afford buying or renting? You should always make sure you have enough money to save for retirement or your family. Now let’s go through some advantages and disadvantages of both buying or renting a property in Doha, Qatar. Which may be applied in anywhere else in the world.
- Cost wise, if you are looking for rental property, many landlords for short term rentals in Doha ask for the first and last month’s rental fee along with the security deposit. On the other hand, in order to buy a property, most mortgages require a down-payment and you may also need to pay closing costs.
- Maintenance wise, renting a home, you are usually not able to renovate or personalize your living space/property. However a good advantage is that your landlord would take care of it and is responsible for repairs. Which on the other hand, the advantage of lease to own a home is that you can customize and renovate your own property in any way you want. The only different is that any repairs or maintenance occurs in the house, you are the one responsible about it and you need to take care of it.
- Value wise, rental fees may increase in future, or buying homes’ values may arise and fall. if you are planning to buy land in Qatar, or looking for a land for rent in Qatar, values of the lands are never stable and they may rise or fall down over time.
- Location wise, when you rent a home, relocating is easier. Because you may end up changing your job, or moving out from the country; therefore you have less responsibility to leave a rental home.
Basically when buying a home, it means buying a single family house or apartment. In my personal opinion, from both perspectives (house or apartment), renting always puts me in a better position than buying.
A lot of buyers in Qatar, once they are married, they decide to go for single family homes to own; which is not the best investment. The saving on a down-payment for a home, it’s more reasonable to put and save money in a bank account or any other type of investment with no or less risk. If you have saved a lot of money, by renting a home you can easily minimize unpredictable costs. You can invest your money to grow your wealth. As mentioned earlier, maintenance wise it is very beneficial to consider to rent than to buy. When you decide to lease to own apartment for example, once you own your own home, a washing machine will cost you and you are the one responsible for replacing it. Which this applies for every other home appliance and items. You are in charge of maintaining, repairing, renovating, and upgrading it.
Of course there is negotiation and arguments about rental homes as well. Some people could argue that rents may vary from one year to another; However it should be taken into consideration that mortgages can too!
To dig deeper into this discussion, when you buy property in Qatar, home costs and expenses are actually challenging to save and invest.
Another point to argue is that when you look for a 2 bedroom apartment for rent for instance, the current rent is a set expense for you lease. Whereas your current costs for owning a 2 bed apartment is always an unpredictable swipe every month.
All the mentioned variable home costs make it very challenging for you to save and invest! If something happens for e.g. there is no way you can call your landlord! You need to be in charge of the money you may have planned to invest and spend it for your house.
If you are a small family and want to buy a house in Doha, a house may limit your freedom and flexibility. A house has always been a big responsibility for everyone to take care of it. Maintaining its value is another subject to worry about. Whilst renting will leave you with more power to choose how you want to spend, and you will rent the space that you actually need.
Focusing more on both financial and lifestyle reasons in this Arab country, many locals in Qatar tend to own huge villa houses or standalone villas. It’s rare to find locals living in apartments. Furthermore, buying property in Qatar for foreigners have recently become a very attractive point for whoever comes to visit Doha, or whomever is planning to invest. Due to the fact that it is now allowed for everyone to pursue a Qatari permanent residency in return when buying properties in West Bay, The Pearl, and Lusail. However, if this is the only reason why people are looking forward to own properties in Doha, do you think it’s very necessary to invest on an apartment or house just for a residency permit? Why don’t you just look for convenient and brand-new properties for rent in Lusail?
To conclude, in my opinion, renting allows you more freedom and flexibility in your home. The problem with homeownership is that you spend on extra expenses along with having unpredictable expenses; but with renting a property, you always have expected and predictable expenses every year which helps you to plan easier. And there is always less attachment to the physical space of the house.
Whether top buy or to rent, you always need to invest in both scenarios!