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House for rent in Pattaya, is buying a better idea?

At some point in your life, you’ve probably asked yourself: is it better for me to continue renting or to buy a home of my own? The buy vs. rent question is a notoriously tough one for consumers, and it’s not just a financial decision; in fact, it can be a very personal choice. 

Weighing all the factors and looking to your own needs – paired with the proper financial analysis – will help you make the smart decision for your particular situation and lifestyle. Our guide is here to walk you through the myriad things you ought to consider when confronting the buy vs. rent question, so you can come to the decision that’s right for you. You can also check out our latest informational guides: Seaboard Properties Pattaya Property Buyer's Guide and our Ultimate Guide on Renting property in Pattaya in case you are looking for more information on Pattaya realty.


Furthermore, if you wish, you can always contact us directly with your questions or browse our listed residential properties for rent and sale in Pattaya. For now, lets analyze some of the pros and cons of Renting vs Buying Thai real estate:

General Economic Conditions

The general economy has affects confidence when consumers are considering a home purchase. Fluctuating interest rates and real estate values and job security concerns will determine whether the environment is right for considering a purchase.

The Advantages of Renting

Renting a home or apartment gives people time to grow accustomed to a new location, offers them the freedom to move quickly if career advancement opportunities open up elsewhere and is cheaper initially compared with the closing costs and down-payment often required for a purchase. Apartment and condominium complexes often offer recreational amenities, and renters do not have to worry about property maintenance, property taxes or homeowner's insurance.

The Advantages of Buying

Home ownership allows buyers the opportunity to accumulate equity by paying down principal and through possible real estate appreciation. In times of rapid market appreciation, financial gains can be staggering. Arguably, with the tax deductions that are allowed for mortgage interest, owning is not much more expensive than renting in flat or rising markets, especially in times of low interest rates. The greatest appeal to real estate ownership might be the pride of ownership and freedom to make changes to your property if desired.

Weighing the Finances

Whether renting or buying is the better financial decision is best determined based on a consumer's own set of circumstances and current market conditions. Websites offer calculators to help crunch the numbers. An analysis of "rent vs. buy" in a moderately appreciating market shows that it takes five to six years for a buyer to gain the advantage.

Another Form of Comparison

Another way to measure rent versus buy is to compare the annual real estate appreciation or depreciation rate with the annual increase or decrease in rental payments.

Finding the Best of Both Worlds

Consider a rent-to-own arrangement if you are undecided about the neighborhood, your job, worried about prices falling, need time to improve your credit or accumulate funds to buy, or if you have started a new relationship or ended an old relationship. Rent-to-own, or a lease-option, gives you time to make the right decision.

Preparing for Home Ownership

Consider your long-term goals and your lifestyle. If you are happy renting or feel secure not having to maintain a property, then maybe renting is right for you. Or renting might be a prelude to when you feel personally and financially secure enough to take the plunge into home ownership.

Buy vs. Rent Comparison

The chart below shows a cost comparison for a renter and a homeowner over a seven year period in USD.

The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000

After 6 years, the homeowner's payment is lower than the renter's monthly payment

With the tax savings of home-ownership, the homeowner's payment is less than the rental payment after 3 years.

Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long you stay in your home. Compare the costs of buying and renting a home in the calculator below: