Delivering Homes

Advantages and Disadvantages of being a property owner

If you are currently house hunting but you’re not sure whether you should actually buy a property or rent one, here are some pros and cons about being a property owner to help you make the right decision for you.


Tax incentives

The tax benefits offered by the Government for 1st time and 2nd time buyers are one of the major incentives for anyone wanting to invest in a future home to buy immovable property.

Stabilize your housing costs

When having a home loan to pay, you will be obliged to pay the same loan repayments for a specified number of years. Such fixed payments help you stabilize your housing costs, making it easier for you as a home owner to have control over your budget.

You can create the home you want

Being a home owner, you will be able to modify your living space whenever you want without requesting any permission from third parties. This means that you can make home improvements to suit your changing needs, while at the same time increasing the market value of your own property.

Return on Investment – Property increase in value

Unlike moveable property, a house appreciates over time. This is likely to happen on a yearly basis depending on the location of the property as well as on the local real estate market.

You can use your property as a source of income

Owning a home means that you can turn it into another source of income as by renting it out to others, your home can become a money-making property.


Pay a lot of interest on loans

The first few years of your loan repayments don’t actually contribute to start paying your home. In the beginning the majority of the loan repayments go towards paying the interest related to the bank loan.

It’s a long-term financial commitment

Buying property by means of a bank loan means that you have a fixed financial commitment for a number of years. Although payments are planned and scheduled on a monthly basis, it can be considered as a burden by some people.

You are responsible for all maintenance

Being an owner brings with it a number of responsibilities, including any maintenance and repairs. If you own a condominium apartment, you will also be requested to pay for example for the use and cleaning of common areas as well as electricity, maintenance or any improvements that need to be made. Such contributions are usually paid on an annual basis.

Down payment requirement

At promise of sale stage, the new property owners are requested to settle a deposit with the seller.  Furthermore, a 10% down payment of the total value of the property is required to be settled at contract stage as generally banks offer a 90% loan and not the full amount.

No guarantee that tenants pay you

If you choose to rent out your property, there is a risk that the monthly rent payments won’t be paid on time and you will have to end up chasing the tenants or appointing someone who can do this job on your behalf.

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