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Buying a Condo vs. Renting an Apartment: Which Is Better in Daytona Beach?

Is it Better to Rent or Buy a Condo

Daytona Beach is a beautiful beach city on the east coast of Florida. Although Daytona Beach is famous for multiple reasons, its beautiful white sand beach is the main reason it is so popular.

The beach is distinguishable by the hard-packed sand that makes it drivable, hence it is the perfect venue for motorsport events, including the renowned Great American Race. Besides the sun and surf, Daytona Beach is an excellent place to live for its perfect all-year-round weather, an abundance of recreational activities, and top-notch academic facilities. Living in Daytona Beach condos allows people to make the most of all of the area's beautiful offerings. Anyone who decides to live in a condo near the World's Most Famous Beach will have to determine if they want to buy or rent. While there are pros and cons to each path, only you can decide what's suitable for your lifestyle. Keep reading to learn if it's better to buy or rent a condo in Daytona Beach.

If You Own a Condo, You Can Rent It Out

The most significant perk of owning versus renting a condo is that you can always rent it out for extra income. Nowadays, dozens of vacation rental websites will list your condo for a minimal commission. But suppose you're not cut out to be a landlord and don't want to be involved in the specifics. In that case, you can always convert it into a condo-hotel and let the rental management company or condotel do the property management work.

They'll remove the hassle out of the process by finding clients, renting out the unit, and even maintaining it for you in exchange for an agreed, fixed share of the profits. That means income without even lifting a finger, and at the same time, owners get to use their Daytona Beach luxury condos whenever they'd like. To work with a condotel, condo owners are often required to register with the management company or a condo owners association, where they'll pay either yearly or monthly association dues and taxes.

Usually, revenue generated from renting is enough to cover these costs and still get you profits. However, condo hotels function like short-term rentals, meaning even though you own the unit, you cannot rent it out without consulting the front desk of the association running it for you. Converting your condo into a condo-hotel is a wise choice if you plan on using it part-time, especially if you bought it on a mortgage since profits generated can be used to cover the ongoing costs.

If You Rent a Condo, You Have Fewer Responsibilities and More Flexibility

Renting a Daytona Beach CondoRenting a condo means you don't have to worry about property taxes as the owner will handle these. You also won't have to stress HOA fees, homeowners' insurance, or long-term HVAC, roofing, or other maintenance costs. All electrical and plumbing repairs will generally be handled on your behalf, plus you get to enjoy greater movement flexibility since rental agreements are often easier to get out of, and you can always move out whenever need be.

So, if you don't plan on staying in the condo for long or are always on the move, it makes more financial sense to rent over buying. However, you won't get any profits from the money paid as rent, and you typically have limited freedom when it comes to condo upgrades and changes.

If You Own a Condo, You'll Build Equity

When you buy instead of renting a condo, you automatically gain equity with each mortgage payment you make or if the property value increase. As a result, you can use your condo as collateral for additional property investment to expand your asset portfolio or get a traditional or fixed rate home equity line of credit.

What's even better is that you don't just get to build equity, you can rent it out at the same time for passive income, so when you're ready to sell it, you'll have already recovered initial mortgage costs and enjoy even more returns from the sale. Plus, you may customize and upgrade it as you wish. On the other hand, renting a condo in Daytona Beach means you'll never get any returns from the money you put in it, as you essentially have no equity.

Are you ready to buy or rent a condo? Browse all the latest Daytona Beach condos for sale.

Is it Cheaper to Buy or Rent a Daytona Beach Condo?

Whether buying or renting a Daytona Beach condo is cheaper depends on how long you plan on staying in one. Daytona Beach condos tend to appreciate as time goes by, meaning if you plan on putting up in them for five years or more, buying is the cheaper option as you'll skip rent costs and sell them at a higher price in the future.

Also, since Daytona Beach condos are essentially smaller than properties like single-family homes, their mortgage rates are usually lower, and in most instances, comparable to what you'd pay in rent. Compare how much renting a condo in Daytona Beach will cost you per year against your monthly mortgage rate. If it's relatively the same, buying it makes more financial sense since you'll get to build equity, and you can rent it out, conversely strengthening your portfolio of assets.

Would You Rather Rent or Buy a Condo In Daytona Beach?

The decision is up to you. Renting a condo allows you to prioritize flexibility, local amenities, and on-site perks throughout your lease. However, at the end of the day, the money you spend on rent is a sunk cost. Buying a condo is a long-term commitment, but every dollar you spend can be earned back down the line by operating the property as a short-term rental or selling it for a profit.

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